Gammon Gold Confirms Increased Production in Q4 over Q3

    HALIFAX, Dec. 31 /CNW/ - Gammon Gold Inc. ("Gammon") (TSX:GAM and
AMEX:  GRS): Gammon announced today that it anticipates achieving over a 6.0%
increase in Q4 production over Q3 levels. The Company had been on target to
meet a 10-15% production increase in Q4 until a temporary labour interruption
was experienced between Christmas and New Years at our Ocampo mine in
Chihuahua, Mexico that impacted production. The Company is pleased that
regardless of this disruption we were still able to achieve an increase in
production in Q4. The Company continues to forecast a significant reduction in
total cash costs for Q4.
    Additionally, the Company advises that it will issue a press release on
January 21, 2008 that will provide an update of its December key performance
    "While we are disappointed that we experienced a disruption at our Ocampo
mine site, we were encouraged by the quick resolution to this matter and are
confident that operations will continue to achieve increasingly improved
productivity as we move forward. We are appreciative that the workforce agreed
to return to work promptly as it clearly demonstrates our mutual resolve to
solidify strong working relations" stated Rene Marion, CEO of Gammon Gold.

    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. The company remains
100% unhedged.

    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
production figures for the fourth quarter, 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: For further information please visit the Gammon
Gold website at or contact: Anne Day, Director of Investor
Relations, Gammon Gold Inc., (902) 468-0614; Glenn Hynes, Chief Financial
Officer, Gammon Gold Inc., (902) 468-0614

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