GAMMON GOLD INC.

Gammon Gold completed the public offering of 12,926,000 common shares at a price of US$8.90 per common share for gross proceeds of US$115,041,400. The Offering was sold on a bought deal basis to a syndicate of underwriters led by BMO Nesbitt Burns Inc. and UBS Securities Canada Inc. and including Dundee Securities Corporation, Macquarie Capital Markets Canada Ltd., Canaccord Capital Corporation and Research Capital Corporation, and includes 1,1686,000 common shares issued pursuant to the full exercise of the over-allotment option. The net proceeds of the Offering will be used to fund expanded operations exploration programs at the Ocampo and El Cubo mines, the advancement of the Guadalupe y Calvo project, debt repayment, greenfields exploration and general corporate purposes.