Gammon Gold Inc. ("Gammon") (TSX:GAM and AMEX:GRS): announces the following: The Appointment of George Elliott to the Gammon Board of Directors

    HALIFAX, July 16 /CNW/ - Mr. Elliott is a seasoned business leader with
35 years of experience in legal affairs and corporate finance throughout a
variety of industries. Most recently, from 2000 to 2007, Mr. Elliott held the
roles of Chairman and CEO for Titanium Corporation Inc. Prior to this,
Mr. Elliott was senior counsel at the law firm Gowling Lafleur Henderson.
Mr. Elliott has also served as an Executive Vice President of MCAP Financial,
which manages over C$20 billion in mortgage investments for Canadian financial
institutions. Mr. Elliott's vast business experience will bring considerable
strength to Gammon's Board of Directors. In addition, Mr. Elliott will assume
the position of Chair of the Nominating & Corporate Governance Committee. Mr.
Elliott replaces Frank Conte who resigned from the Gammon Board of Directors
effective July 2, 2008.
    Mr. Fred George, Chairman and President of Gammon Gold commented, "Along
with the progress we have made in achieving significant operational and
financial improvements we continue to enhance the overall effectiveness of our
Board by appointing seasoned professionals with proven track records that
strengthen the Board's overall independence and expertise. Mr. Elliott's
appointment, together with the recent appointment of Andre Falzon, who for
most of his career was Vice President and Controller of Barrick Gold
Corporation, will continue to serve this strategic objective." Mr. George
continued, "As we execute on our growth strategy we will continue to identify
potential Board members who will best contribute to that strategy. On behalf
of the Board of Directors I would like to welcome Mr. Elliott to Gammon Gold."
    Mr. Rene Marion, Chief Executive Officer of Gammon Gold commented, "I am
pleased that Mr. Elliott has accepted the appointment to the Board of
Directors. Coupled with his extensive Board experience, Mr. Elliott's
background in corporate finance and law adds tremendous strength to the Gammon
Board and his focus on business development and relationship management will
lend a unique perspective that will serve the Board well." Mr. Marion
continued, "As we continue to drive ongoing operational and financial
improvements to the Company, we remain committed to creating a stronger and
more strategic Board to support our growth strategy."

    Claim Against Gammon Gold Amended

    The Company also stated that a previously filed statement of claim in
which the Company was named as a defendant has been amended to, among other
things, assert new claims and increase the damages sought from eighty million
dollars to one hundred and sixty million dollars.
    Gammon Gold considers the allegations in the amended statement of claim
to be without merit and intends to vigorously defend itself. The Company
believes that it acted with appropriate care, diligence and skill at all
times. In this litigation Gammon will be seeking, among other remedies, full
recovery of its legal costs from the plaintiff.
    Gammon remains focused on its operations which reported its third
consecutive quarter of improvements resulting in another consecutive quarter
of best ever production and operating cash flow in the history of the Company.

    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.

    Certain information regarding the Company contained herein may constitute
forward-looking statements within the meaning of applicable securities laws.
Forward-looking statements are subject to a variety of risks and uncertainties
which could cause actual events or results to differ from those reflected in
the forward-looking statements. Should one or more of these risks and
uncertainties materialize, or should underlying assumptions prove incorrect,
actual results may vary materially from those described in forward looking
statements. Specific reference is made to "Risk Factors" in the Company's
Annual Information Form and Form 40-F Report. Forward-looking statements
including without limitation, statements regarding future cash costs and
production at Ocampo and El Cubo and the ability to continue to successfully
implement the Company's Turn-Around Strategy, statements regarding the
resource growth potential of Guadeloupe y Calvo, statements regarding the
Company's ability to continue its improved cash flow performance may include
estimates, plans, expectations, opinions, forecasts, projections, guidance or
other statements that are not statements of fact including, without
limitation, statements regarding potential mineralization and reserves,
including the impact of any future exploration on reserve estimates;
expectations regarding the timing and extent of production at the Ocampo
project; the implications of the Mexican Single Rate Tax on future income tax
payments; estimates regarding the future costs related to exploration at
Ocampo; the nature and availability of additional funding sources; and future
plans and objectives of Gammon. In some cases, you can identify
forward-looking statements by the use of words such as may, will, should,
could, expect, plan, intend, anticipate, believe, estimate, predict, potential
or continue or the negative or other variations of these words, or other
comparable words or phrases. Although the Company believes that the
expectations reflected in such forward-looking statements are reasonable, it
can give no assurance that such expectations will prove to have been correct.
Important factors that could cause actual results to differ materially from
the Company's expectations include, among others, risks related to
international operations, including political turmoil and limited local
infrastructure to support large scale mining operations; the actual results of
current exploration activities; conclusions of economic evaluations and
changes in project parameters as plans continue to be refined; and
fluctuations in future prices of gold and silver. These factors are set out in
the Company's annual information form. The Company's forward-looking
statements are expressly qualified in their entirety by this cautionary

For further information:

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

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