Gammon Gold Reports 3-Year Consolidated Operational Outlook and Updated
Reserves and Resources

HALIFAX, March 30 /CNW/ - Gammon Gold Inc. ("Gammon" or the "Company") (TSX:GAM and NYSE: GRS): today issued a 3-year operational outlook for the years 2010 to 2012 and updated Reserves and Resources statements as at December 31, 2009.

    
    3-Year Operational Outlook
    -------------------------------------------------------------------------
    

In 2010, the Company expects to produce 150,000 to 180,000 ounces of gold and 6.10 to 6.85 million ounces of silver, or 260,000 to 305,000 gold equivalent ounces, using a gold-to-silver ratio of 55:1, from existing operations. Total cash costs for 2010 are expected to be $440 to $475 per gold equivalent ounce using the same ratio. The anticipated increase in production over 2009 is expected to be supported by a number of factors including:

    
    - Completing the commissioning of the Phase III mill expansion during the
      second quarter of 2010 that will increase mill capacity to between
      3,300 and 3,400 tonnes per day ("tpd")
    - Achieving the Ocampo steady-state underground production target of
      1,500 tonnes per day by the end of the first quarter of 2010
    - Gaining access to higher grade mineralization in the Picacho open pit
      during the second quarter of 2010
    - Completing the heap leach expansion program and ramping up stacking
      rates to targeted levels of over 10,000 tonnes per day during the
      second quarter of 2010
    - Completing the development of the Santa Eduviges underground mine with
      production anticipated during the second half of 2010 with further
      expansions in 2011
    - Continuing to improve productivity at El Cubo to targeted levels of
      1,850 tonnes per day by the second half of 2010
    

In subsequent years, further increases in production from existing operations and decreases in total cash costs are expected to be supported by a number of factors including:

    
    - Consistent operations at Ocampo and increased in-situ ore production to
      2,000 tpd from El Cubo
    - Full-year production from the Santa Eduviges underground mine at Ocampo
    - Continued productivity enhancements throughout our operations

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                   Gammon Gold - 3-Year Operational Outlook
    -------------------------------------------------------------------------
    Production:                  2010             2011             2012
    -------------------------------------------------------------------------
      Gold Ounces           150-180,000 oz   155-185,000 oz   175-205,000 oz
    -------------------------------------------------------------------------
      Silver Ounces        6,100-6,850k oz  7,500-8,250k oz  6,750-7,500k oz
    -------------------------------------------------------------------------
      Gold Equivalent(1)    260-305,000 oz   290-335,000 oz   295-340,000 oz
    -------------------------------------------------------------------------
    Cash Cost per Gold
     Equivalent Ounce(1,2)      $440-$475        $410-$445        $395-$430
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    1. Assumes a 55:1 gold-to-silver ratio
    2. Assumes a foreign exchange rate of 12.5 Mexican pesos to one U.S.
       dollar
    -------------------------------------------------------------------------
    

"The majority of 2010's production growth from existing operations is expected to be realized in the second half of the year when the Company completes the Ocampo capital expansion program, the Ocampo underground mine achieves steady state production of 1,500 tonnes per day and we realize ongoing productivity improvements at the El Cubo mine. Additional production is planned early in the second half of the year when the Santa Eduviges underground mine is expected to come into production." stated Rene Marion, President and Chief Executive Officer of Gammon Gold. "In 2011 and 2012, we expect production to increase as we gain the full year benefit of the Ocampo capital expansion program, production from Santa Eduviges and the planned improved productivities at El Cubo. Through our aggressive exploration program we anticipate that future years will benefit from the development of new orebodies identified by our strategic exploration program and reserves growth that we expect to realize through our drilling programs."

    
    Reserve and Resource Estimates
    -------------------------------------------------------------------------
    

Mineral Reserves and Mineral Resources are stated as of December 31, 2009 and have been calculated assuming a gold price of $845 per ounce, a silver price of $14.35 per ounce and an exchange rate of 12.5 Mexican Pesos to the US dollar.

    
    Proven and Probable Mineral Reserves
    -------------------------------------------------------------------------
    

Consolidated

Gammon's total Proven and Probable reserves at year-end 2009 decreased by 412,000 ounces to 2,546,000 gold equivalent ounces, versus 2,958,000 gold equivalent ounces at year end 2008, or a decrease of 14%, using a silver to gold ratio of 58.89:1. Mining depletion of 267,000 gold equivalent ounces accounted for 9% of the net reduction. 2009 year end Proven & Probable Reserves are 67,776,000 tonnes at 0.65 grams per tonne gold, 30 grams per tonne silver for an average gold equivalent grade of 1.17 grams per tonne using a silver to gold ratio of 58.89:1. 2009 year end Proven & Probable Reserve tonnages have increased by 7,886,000 tonnes (an increase of approximately 13%) from the 2008 year end Reserves.

Ocampo Underground

2009 year end Proven & Probable Reserves at the Ocampo underground are 2,953,000 tonnes at 3.58 grams per tonne gold, 177 grams per tonne silver for an average gold equivalent grade of 6.59 grams per tonne using a silver to gold ratio of 58.89:1, resulting in 626,000 contained gold equivalent ounces, or an increase of 16% over 2008 year end gold equivalent ounces after mining depletion.

Ocampo Open Pit

2009 year end Proven & Probable Reserves at the Ocampo open pits are 61,248,000 tonnes at 0.40 grams per tonne gold, 16 grams per tonne silver for an average gold equivalent grade of 0.67 grams per tonne, resulting in 1,324,000 contained gold equivalent ounces using a silver to gold ratio of 58.89:1. This is a reduction of 25% from the 2008 year end Proven & Probable gold equivalent reserve ounces and is a 16% reduction following 2009 mining depletion. The reduction in 2009 Proven and Probable Reserves is primarily a result of the 2009 drilling program that targeted deeper inferred material in and below the pit bottom. This drilling program returned lower than expected average grades that upon incorporation into the resource interpretation resulted in lower overall pit grades. The impact of the 2009 drilling program was partially offset by a reduction in the leach cutoff grade from 0.30 grams per tonne to 0.18 grams per tonne, and the significant inclusion of additional leach material within the ultimate pit. The additional leach material has also had the impact of significantly reducing the strip ratio year over year from 3.0 to 2.3.

El Cubo Underground

2009 year end Proven & Probable Reserves at the El Cubo underground are 3,575,000 tonnes at 2.64 grams per tonne gold, 150 grams per tonne silver for an average gold equivalent grade of 5.19 grams per tonne using a silver to gold ratio of 58.89:1, resulting in 596,000 contained gold equivalent ounces. At a silver to gold ratio of 58.89:1, gold equivalent ounces have decreased by 7% from 2008 year end reserves of which mining depletion accounted for 3% of the decrease. Reductions were primarily due to the removal from reserve of specific remnant pillars deemed to be impractical to mine.

    
    Consolidated Measured and Indicated Mineral Resources
    -------------------------------------------------------------------------
    

Gammon's total Measured and Indicated mineral resources at year-end 2009 decreased by 195,000 ounces to 489,000 gold equivalent ounces, versus 684,000 gold equivalent ounces, a decrease of 29% over 2008. 2009 year end Measured and Indicated mineral resources are 17,565,000 tonnes at 0.59 grams per tonne gold, 17 grams per tonne silver for an average gold equivalent grade of 0.87 grams per tonne using a silver to gold ratio of 60.00:1. The decrease in Measured and Indicated resources is primarily a result of the drop in the leach cutoff grade within the Ocampo open pit and the subsequent conversion of low grade Measured and Indicated into Proven and Probable.

    
    Consolidated Inferred Mineral Resources
    -------------------------------------------------------------------------
    

Gammon's total Inferred mineral resources at year-end 2009 decreased by 303,000 ounces to 4,638,000 gold equivalent ounces ay a silver to gold ratio of 60.00:1, versus 4,941,00 gold equivalent ounces, a decrease of 6% over 2008. The reduction in Inferred resources can be attributed to the conversion of resource material to Proven and Probable and Measured and Indicated in the open pit as a result of the 2009 pit drilling program, the conversion of Inferred material to Proven and Probable ore at the Ocampo underground and the conversion of Las Torres Inferred material to Proven and Probable ore at the El Cubo mine.

About Gammon Gold

Gammon Gold Inc. is a Nova Scotia based mid-tier gold and silver producer with properties in Mexico. The Company's flagship Ocampo Project in Chihuahua State achieved commercial production in January 2007. Gammon gold also operates its El Cubo operation in Guanajuato State and has the promising Guadalupe y Calvo development property in Chihuahua State. The Company recently completed a purchase option agreement to acquire the Mezquite Project ("Mezquite") in Zacatecas State, Mexico.

    
                             Cautionary Statement
    

Cautionary Note to US Investors - The United States Securities and Exchange Commission permits US mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. This press release uses certain terms, such as "measured," "indicated," and "inferred" "resources," that the SEC guidelines strictly prohibit US registered companies from including in their filings with the SEC. US Investors are urged to consider closely the disclosure in Gammon Gold's Annual Report on Form 40-F/A, which may be secured from Gammon Gold, or from the SEC's website at http://www.sec.gov/edgar.shtml.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Certain statements included herein, including information as to the future financial or operating performance of the Company, its subsidiaries and its projects, constitute forward-looking statements. The words "believe", "expect", "anticipate", "contemplate", "target", "plan", "intends", "continue", "budget", "estimate", "forecast", "may", "will", "schedule" and similar expressions identify forward-looking statements. Forward-looking statements include, among other things, statements regarding targets, estimates and assumptions in respect of gold and silver production and prices in 2010 and subsequent years, operating costs, results and capital expenditures, mineral reserves and mineral resources and anticipated grades, recovery rates, future financial or operating performance, margins, operating and exploration expenditures, costs and timing of the development of new deposits, costs and timing of construction, costs and timing of future exploration and reclamation expenses including, anticipated 2009 results, operating performance projections for 2009 and 2010, our ability to fully fund our business model internally, 2009 gold and silver production and the cash and operating costs associated therewith, the ability to achieve productivity and operational efficiencies, further reduction in the open pit stripping ratio and the timing of each thereof. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company's actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company. Such factors include, among others, known and unknown uncertainties and risks relating to additional funding requirements, reserve and resource estimates, commodity prices, hedging activities, exploration, development and operating risks, illegal miners, political and foreign risk, uninsurable risks, competition, limited mining operations, production risks, environmental regulation and liability, government regulation, currency fluctuations, recent losses and write-downs, restrictions in the Company's loan facility, dependence on key employees, possible variations of ore grade or recovery rates, failure of plant, equipment or process to operate as anticipated, accidents and labour disputes. Investors are cautioned that forward-looking statements are not guarantees of future performance and, accordingly, investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein.

    
    Ocampo Proven & Probable Reserves(4)(5)(7)(8)(10)
    -------------------------------------------------------------------------
                                                                        Gold
                                    Gold                                Equi-
                                    Equi-             Gold   Silver   valent
    Mineral       Gold   Silver   valent   Tonnes   Ounces   Ounces   Ounces
     Category  (g/t)(6) (g/t)(6) (g/t)(6)  (000's)  (000's)  (000's) (000)(1)
    -------------------------------------------------------------------------
    Open Pit
     Area(9)
    -------------------------------------------------------------------------
    Proven        0.39       17     0.67   29,636      374   15,813      643
    -------------------------------------------------------------------------
    Probable      0.40       16     0.67   31,612      406   16,180      681
    -------------------------------------------------------------------------
    Total Open
     Pit Area
     Proven &
     Probable     0.40       16     0.67   61,248      781   31,994    1,324
    -------------------------------------------------------------------------
    Underground
     Area
    -------------------------------------------------------------------------
    Proven        3.67      186     6.83    2,266      268   13,524      497
    -------------------------------------------------------------------------
    Probable      3.25      151     5.81      686       72    3,323      128
    -------------------------------------------------------------------------
    Total
     Underground
     Area Proven
     & Probable   3.58      177     6.59    2,953      339   16,847      626
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Total Proven  0.63       29     1.11   31,902      642   29,337    1,140
    -------------------------------------------------------------------------
    Total
     Probable     0.46       19     0.78   32,299      478   19,504      809
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Total Ocampo
     Proven &
     Probable     0.54       24     0.94   64,201    1,120   48,841    1,949
    -------------------------------------------------------------------------


    El Cubo Proven & Probable Reserves(4)(5)(7)(10)
    -------------------------------------------------------------------------
                                                                        Gold
                                    Gold                                Equi-
                                    Equi-             Gold   Silver   valent
    Mineral       Gold   Silver   valent   Tonnes   Ounces   Ounces   Ounces
     Category  (g/t)(6) (g/t)(6) (g/t)(6)  (000's)  (000's)  (000's) (000)(1)
    -------------------------------------------------------------------------
    El Cubo
    -------------------------------------------------------------------------
    Proven        2.72      159     5.43    1,373      120    7,028      240
    -------------------------------------------------------------------------
    Probable      2.86      141     5.26    1,688      155    7,651      285
    -------------------------------------------------------------------------
    Total
     El Cubo
     Proven &     2.80      149     5.33    3,061      275   14,679      525
     Probable
     Reserves
    -------------------------------------------------------------------------
    Las Torres
     (Underground)
    -------------------------------------------------------------------------
    Proven        1.60      155     4.24      305       16    1,521       41
    -------------------------------------------------------------------------
    Probable      1.86      153     4.47      209       13    1,031       30
    -------------------------------------------------------------------------
    Total
     Las Torres
     Proven &
     Probable
     Reserves     1.71      155     4.33      514       28    2,552       72
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Total Proven -
     El Cubo and
     Las Torres   2.52      158     5.21    1,678      136    8,549      281
    -------------------------------------------------------------------------
    Total
     Probable -
     El Cubo and
     Las Torres   2.75      142     5.17    1,897      168    8,682      315
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Total Proven
     & Probable
     Reserves -
     El Cubo and
     Las Torres   2.64      150     5.19    3,575      304   17,232      596
    -------------------------------------------------------------------------


    Total Summary of Proven & Probable Reserves(4)(5)(7)(8)(10)
    -------------------------------------------------------------------------
                                                                        Gold
                                    Gold                                Equi-
                                    Equi-             Gold   Silver   valent
    Mineral       Gold   Silver   valent   Tonnes   Ounces   Ounces   Ounces
     Category  (g/t)(6) (g/t)(6) (g/t)(6)  (000's)  (000's)  (000's) (000)(1)
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Total
     Proven       0.72       35     1.32   33,580      778   37,886    1,422
    -------------------------------------------------------------------------
    Total
     Probable     0.59       26     1.02   34,196      646   28,186    1,124
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Total
     Proven &
     Probable
     Reserves     0.65       30     1.17   67,776    1,424   66,072    2,546
    -------------------------------------------------------------------------


    Ocampo Measured, Indicated & Inferred Resources(3)(4)(5)(7)(8)(10)
    -------------------------------------------------------------------------
                                                                        Gold
                                    Gold                                Equi-
                                    Equi-             Gold   Silver   valent
    Mineral       Gold   Silver   valent   Tonnes   Ounces   Ounces   Ounces
     Category  (g/t)(6) (g/t)(6) (g/t)(6)  (000's)  (000's)  (000's) (000)(2)
    -------------------------------------------------------------------------
    Open Pit
     Area(9)
    -------------------------------------------------------------------------
    Measured      0.20        7     0.31    5.604       35    1,220       56
    -------------------------------------------------------------------------
    Indicated     0.16        6     0.25    9,008       46    1,613       73
    -------------------------------------------------------------------------
    Total Open
     Pit Area
     Measured &
     Indicated    0.17        6     0.27   14,612       81    2,833      129
    -------------------------------------------------------------------------
    Inferred      1.42       38     2.06    8,888      405   10,957      588
    -------------------------------------------------------------------------
    Underground
     Area
    -------------------------------------------------------------------------
    Measured      3.10      190     6.26      275       27    1,681       55
    -------------------------------------------------------------------------
    Indicated     2.20       87     3.65      230       16      645       27
    -------------------------------------------------------------------------
    Total
     Underground
     Measured &
     Indicated    2.69      143     5.08      505       44    2,326       82
    -------------------------------------------------------------------------
    Inferred      4.50      262     8.86    5,330      771   44,858    1,519
    -------------------------------------------------------------------------
    Summary -
     Total
     Measured
     & Indicated
    -------------------------------------------------------------------------
    Total
     Measured     0.33       15     0.59    5,879       63    2,901      111
    -------------------------------------------------------------------------
    Total
     Indicated    0.21        8     0.34    9,238       62    2,258      100
    -------------------------------------------------------------------------
    Total
     Measured &
     Indicated    0.26       11     0.43   15,117      125    5,159      211
    -------------------------------------------------------------------------
    Summary  -
     Total
     Inferred
    -------------------------------------------------------------------------
    Total
     Inferred     2.57      122     4.61   14,218    1,176   55,815    2,107
    -------------------------------------------------------------------------


    El Cubo Measured, Indicated & Inferred Resources(3)(4)(5)(7)(10)
    -------------------------------------------------------------------------
                                                                        Gold
                                    Gold                                Equi-
                                    Equi-             Gold   Silver   valent
    Mineral       Gold   Silver   valent   Tonnes   Ounces   Ounces   Ounces
     Category  (g/t)(6) (g/t)(6) (g/t)(6)  (000's)  (000's)  (000's) (000)(2)
    -------------------------------------------------------------------------
    El Cubo
    -------------------------------------------------------------------------
    Measured      1.91       93     3.46      112        7      334       12
    -------------------------------------------------------------------------
    Indicated     2.03       96     3.63      197       13      608       23
    -------------------------------------------------------------------------
    Total
     El Cubo
     Measured &
     Indicated    1.99       95     3.57      309       20      942       36
    -------------------------------------------------------------------------
    Inferred      4.10      203     7.49    2,416      319   15,790      582
    -------------------------------------------------------------------------
    Las Torres
    -------------------------------------------------------------------------
    Measured      2.02       68     3.14       27        2       59        3
    -------------------------------------------------------------------------
    Indicated     2.13       65     3.22       11        1       24        1
    -------------------------------------------------------------------------
    Total
     Las Torres
     Measured &
     Indicated    2.05       67     3.17       38        3       82        4
    -------------------------------------------------------------------------
    Inferred      4.34      171     7.19      487       68    2,679      113
    -------------------------------------------------------------------------
    Phoenix Pit
    -------------------------------------------------------------------------
    Measured         -        -        -        -        -        -        -
    -------------------------------------------------------------------------
    Indicated     2.72       49     3.54    2,100      184    3,308      239
    -------------------------------------------------------------------------
    Total
     Phoenix Pit
     Measured &
     Indicated    2.72       49     3.54    2,100      184    3,308      239
    -------------------------------------------------------------------------
    Inferred         -        -        -        -        -        -        -
    -------------------------------------------------------------------------
    Summary -
     Measured &
     Indicated
    -------------------------------------------------------------------------
    Total
     Measured -
     El Cubo and
     Las Torres   1.93       88     3.40      139        9      393       15
    -------------------------------------------------------------------------
    Total
     Indicated -
     El Cubo and
     Las Torres   2.66       53     3.54    2,309      197    3,940      263
    -------------------------------------------------------------------------
    Total
     Measured &
     Indicated -
     El Cubo and
     Las Torres   2.62       55     3.53    2,448      206    4,333      278
    -------------------------------------------------------------------------
    Summary -
     Inferred
    -------------------------------------------------------------------------
    Total
     Inferred -
     El Cubo and
     Las Torres   4.14      198     7.44    2,903      387   18,469      694
    -------------------------------------------------------------------------


    Guadalupe y Calvo Estimate of Inferred Resources(3)(4)(5)(7)(10)
    -------------------------------------------------------------------------
                                                                        Gold
                                    Gold                                Equi-
                                    Equi-             Gold   Silver   valent
    Deposit       Gold   Silver   valent   Tonnes   Ounces   Ounces   Ounces
     Location  (g/t)(6) (g/t)(6) (g/t)(6)  (000's)  (000's)  (000's) (000)(2)
    -------------------------------------------------------------------------
    Rosario
     Bulk Tonnage
     (at 75% of
     available
     tonnes)      1.60       96     3.25   10,700      566   33,100    1,118
    -------------------------------------------------------------------------
    Rosario
     Underground
     (at 33% of
     available
     tonnes)     18.50      435    24.28      700      393    9,200      546
    -------------------------------------------------------------------------
    Rosario
    -------------------------------------------------------------------------
    Total
     Rosario
     Inferred     2.64      117     4.54   11,400      959   42,300    1,664
    -------------------------------------------------------------------------
    Nankin
     Underground
     (at 33% of
     available
     tonnes)      9.25      260    13.45      400      118    3,300      173
    -------------------------------------------------------------------------
    Nankin
    -------------------------------------------------------------------------
    Total Nankin
     Inferred     9.25      260    13.45      400      118    3,300      173
    -------------------------------------------------------------------------
    Summary -
     Inferred
    -------------------------------------------------------------------------
    Total
     Rosario
     and Nankin
     Inferred     2.84      120     4.84   11,800    1,077   45,600    1,837
    -------------------------------------------------------------------------


    Total Summary of Measured, Indicated and Inferred Resources(3)(4)(5)(10)
    -------------------------------------------------------------------------
                                                                        Gold
                                    Gold                                Equi-
                                    Equi-             Gold   Silver   valent
    Mineral       Gold   Silver   valent   Tonnes   Ounces   Ounces   Ounces
     Category  (g/t)(6) (g/t)(6) (g/t)(6)  (000's)  (000's)  (000's) (000)(2)
    -------------------------------------------------------------------------
    Summary -
     Measured &
     Indicated
    -------------------------------------------------------------------------
    Total
     Measured     0.37       17     0.65    6,018       72    3,294      126
    -------------------------------------------------------------------------
    Total
     Indicated    0.70       17     0.98   11,546      259    6,198      363
    -------------------------------------------------------------------------
    Total
     Measured &
     Indicated    0.59       17     0.87   17,565      331    9,492      489
    -------------------------------------------------------------------------
    Summary -
     Inferred
    -------------------------------------------------------------------------
    Total
     Inferred     2.84      129     4.99   28,921    2,640  119,884    4,638
    -------------------------------------------------------------------------


    Notes to Mineral Resources and Reserves Tables:

    1.  Gold equivalent calculations use the reserve metal prices of $845/oz
        for gold and $14.35/oz for silver for a gold to silver ratio of
        58.89:1.
    2.  Gold equivalent calculations use the resource metal prices of $975/oz
        for gold and $16.25/oz for silver for a gold to silver ratio of
        60.00:1.
    3.  These Mineral Resources are in addition to Mineral Reserves. Mineral
        Resources that are not Mineral Reserves do not have demonstrated
        economic viability when calculated using Mineral Reserve assumptions.
    4.  Reserves have been calculated in accordance with NI 43-101, as
        required by Canadian securities regulatory authorities. In addition,
        while the terms "Measured", "Indicated and "Inferred" Mineral
        Resources are required pursuant to NI 43-101, the SEC does not
        recognize such terms. Canadian standards differ significantly from
        the requirements of the SEC, and Mineral Resources disclosed in
        accordance with the requirements of the SEC. Investors should
        understand that "Inferred" Mineral Resources have a great amount of
        uncertainty as to their existence and great uncertainty as to their
        economic and legal feasibility. In addition, investors are cautioned
        not to assume that any part or all of Gammon's Mineral Resources
        constitute or will be converted into Reserves.
    5.  Mineral Reserves and Resources have been calculated as at
        December 31, 2009.
    6.  Grade represents an average, weighted by reference to tons of ore
        type where several recovery processes apply.
    7.  The metallurgical recovery applicable at each property and the
        cut-off grades used to determine Reserves as at December 31, 2009 are
        as follows:

                            Au             Ag
                       Metallurgical  Metallurgical                  Cut-off
       Mine             Recovery (%)   Recovery (%)                Grade g/t
       ----------------------------------------------------------------------
       Ocampo
        Open-Pit
        Mill                96             82              (greater than)2.5
       Ocampo
        Open Pit
        Fine Crush          82             72          (greater than)0.7-2.5
       Ocampo
        Open Pit
        Coarse Crush        60             35        (greater than)0.18-0.70
       ----------------------------------------------------------------------
       Ocampo
        Underground         96             82                            2.0
       ----------------------------------------------------------------------
       El Cubo              89             89                           2.19

       All ores at Ocampo demonstrate similar metallurgical recoveries
       regardless of whether oxides are sulfides.


    8.  The Ocampo Open Pit strip ratio is 2.3:1.
    9.  The basis for the reserve estimation is the Learchs-Grossman pit
        optimization methodology.
    10. Sums may not add to totals due to rounding.
    

SOURCE GAMMON GOLD INC.

For further information: For further information: please visit the Gammon Gold website at www.gammongold.com or contact: Rene Marion, President & Chief Executive Officer, Gammon Gold Inc., (416) 646-3825; Anne Day, Director of Investor Relations, Gammon Gold Inc., (902) 468-0614

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GAMMON GOLD INC.

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