Gammon Gold Announces Successful End to the El Cubo Strike: El Cubo Union Adopts Continuous Work Schedule

    HALIFAX, June 15 /CNW/ - Gammon Gold Inc. ("Gammon") (TSX:GAM and
NYSE:  GRS): Gammon Gold is pleased to announce the successful conclusion of the
strike action at its El Cubo mine in Guanajuato State, México. The union
representatives agreed to recommend to its members the adoption of a seven-day
continuous work schedule that Management had tabled as part of the
negotiations of the union's collective agreement. The changes to the agreement
were ratified at a vote by the union membership on June 13, 2009. The new
agreement will be registered with the Secretariat and the workers will be
returning to work today, June 15, 2009.
    During the negotiations with the Union, Management remained steadfast
that the Union adopt a seven-day continuous work schedule as is the normal
practice in mining operations throughout México. The Company is confident that
this new work schedule could further improve El Cubo's productivity and
therefore operating margins over time. The two parties have also agreed to an
8% increase in basic wages and a 3% increase in benefits, representing
approximately a 3.5% increase in total payroll costs.
    "We are pleased we have been able to resolve the strike action at our El
Cubo mine." stated René Marion, Chief Executive Officer of Gammon Gold. He
continued, "I applaud the Management negotiating team as well as the Union
representatives and its members for their willingness to adopt a seven-day
continuous work schedule. I am confident that this new work schedule will
prove beneficial for both parties and that operations at El Cubo will quickly
return to normal levels."
    Fred George, President and Chairman stated "I would like to thank the
Government of Mexico for their support in the successful negotiation of this
landmark union agreement at El Cubo and for the Ocampo Presidential Decree
formally granting all property rights and titles of the Ocampo land package to

    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
development Guadalupe y Calvo property in Chihuahua State.

    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 (File No. 001-31739), which may be secured
from Gammon Gold, or from the SEC's website at
    No stock exchange, securities commission or other regulatory authority
has approved or disapproved the information contained herein. This News
Release includes certain "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995 and "forward-looking
information" within the meaning of applicable Canadian legislation. All
statements other than statements of historical fact, included in this release,
including, without limitation, statements regarding potential mineralization
and reserves, exploration results, and future plans and objectives of Gammon
Gold, are forward-looking statements (or forward-looking information) that
involve various risks and uncertainties. There can be no assurance that such
statements will prove to be accurate and actual results and future events
could differ materially from those anticipated in such statements. Important
factors that could cause actual results to differ materially from Gammon
Gold's expectations include, among others, risks related to international
operations, the actual results of current exploration activities, conclusions
of economic evaluations and changes in project parameters as plans continue to
be refined as well as future prices of gold and silver, as well as those
factors discussed in the section entitled "Risk Factors" in Gammon Gold's Form
40-F and Annual Information Form as filed with the United States Securities
and Exchange Commission. Although Gammon Gold has attempted to identify
important factors that could cause actual results to differ materially, there
may be other factors that cause results not to be as anticipated, estimated or
    There can be no assurance that such statements will prove to be accurate
as actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place undue
reliance on forward-looking statements. Gammon Gold does not undertake to
update any forward-looking statements that are included herein, except in
accordance with applicable securities laws.

For further information:

For further information: Please visit the Gammon Gold website at or contact: Rene Marion, Chief Executive Officer, Gammon
Gold Inc., (902) 468-0614; Anne Day, Director of Investor Relations, Gammon
Gold Inc., (902) 468-0614

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