Gammon Gold Announces Initial Reserves at Three new Discoveries at its Ocampo Operation

TSX: GAM / NYSE: GRS / BSX: GL7

TORONTO, September 20, 2010 - Gammon Gold Inc. ("Gammon" or the "Company") (TSX:GAM and NYSE:GRS) is
pleased to report an initial 127,750 gold equivalent ounces(1) in Proven and
Probable Reserves at three new discoveries made at Ocampo. These three new
deposits have been discovered through the first phase drilling program during
the first half of 2010.

Two of the new discoveries are underground deposits; Santa Eduviges
(Reserves of 44,961 gold equivalent ounces(1)), currently being developed as
the second underground mine at Ocampo and Belen/Santa Juliana (Reserves of
50,529 gold equivalent ounces(1)), which are new veins discovered in the main
NE underground mine. The third new discovery, Las Molinas, is a new open pit
deposit (Reserves of 32,260 gold equivalent ounces(1)). These Reserves will
be updated during the second half of 2010 and will be incorporated into the
2010 Reserves and Resources Statement along with additional Reserves and
Resources delineated through the Company's ongoing drilling program at Ocampo
in the second half of the year. The Company expects to issue the 2010
Reserves and Resources Statement by the end of first quarter of 2011.

"We are particularly pleased that these additional reserves were from new
discoveries. These initial results highlight the potential of the Ocampo
property as well as our surrounding land package," stated Rene Marion,
President and CEO of Gammon. "For the remainder of 2010, we plan to complete
an additional 45,000 metres of drilling at Ocampo targeting additional in-pit
resources along the PGR Trend, as well as new open pit and underground
targets."

Scientific or technical information in this Press Release relating to
Mineral Reserves for the Ocampo property have been prepared and verified by
employees of Gammon Gold Inc. under the supervision of Ramon Luna, P. Geo.
Mr. Luna, is a "Qualified Person" as defined in National Instrument 43-101.

About Gammon Gold

Gammon Gold Inc. is a mid-tier gold and silver producer with properties
in Mexico. Gammon's flagship Ocampo Property in Chihuahua State achieved
commercial production in January 2007. Gammon Gold also owns the suspended El
Cubo mine in Guanajuato State and has the promising Guadalupe y Calvo
development property in Chihuahua State. Gammon recently completed option
purchase agreements to acquire the Mezquite Project in Zacatecas State,
Mexico and the Venus Project located north of the Ocampo mine. Gammon also
recently signed a Definitive Agreement to acquire the Los Jarros Project in
Chihuahua State. Since 2008, the Company has increased its Mexican land
position by over 59% and has made strategic investments in Golden Queen
Mining Co. Ltd. and Corex Gold Corporation. The Company's Executive Office is
located in Toronto, Ontario.

(1) Please refer to the mid-year reserve tables as at June 30, 2010 that
are attached to this press release

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
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 Reserve Additions(2)(3)(5)(6)
    -------------------------------------------------------------------------
                                                                        Gold
                                     Gold                              Equi-
                                    Equi-                             valent
                     Gold  Silver  valent              Gold   Silver  Ounces
    Mineral          (g/t)   (g/t)   (g/t)  Tonnes   Ounces   Ounces  (000's)
    Category           (4)     (4)     (4)  (000's)  (000's)  (000's)     (1)
    -------------------------------------------------------------------------
    Los Molinas
    Open Pit(7)
    -------------------------------------------------------------------------
    Proven           0.72      21    1.06      785       18      531      27
    Probable         0.52      18    0.80      214        4      122       6
    Total Los
     Molinas Proven
     & Probable      0.68      20    1.00      999       22      653      32
    -------------------------------------------------------------------------
    Santa Eduviges
     Underground
    -------------------------------------------------------------------------
    Proven           4.18      85    5.56      197       26      540      35
    Probable         2.42      52    3.26       94        7      158      10
    Total Sta.
     Eduviges Proven
     & Probable      3.61      75    4.82      290       34      698      45
    -------------------------------------------------------------------------
    Santa Juliana/
     Belen Underground
    -------------------------------------------------------------------------
    Proven           2.39     254    6.47       81        6      665      17
    Probable         1.91     219    5.43      192       12    1,354      34
    Total Sta.
     Juliana/Belen
     Proven &
     Probable        2.05     229    5.74      274       18    2,019      51
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total Proven
     Additions       1.49      51    2.30    1,064       51    1,736      79
    Total Probable
     Additions       1.41     102    3.05      500       23    1,634      49
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total Additions
     Proven &
     Probable        1.46      67    2.54    1,563       74    3,370     128
    -------------------------------------------------------------------------

    Notes to Mineral Resources and Reserves Tables:

    1. Gold equivalent calculations use reserve metal prices of $945/oz for
       gold and $15.20/oz for silver for a gold to silver ratio of 62.17:1
    2. Reserves additions have been calculated in accordance with NI 43-101,
       as required by Canadian securities regulatory authorities. Mineral
       Reserves additions have been calculated as at June 30, 2010.
    3. Grade represents an average, weighted by reference to tons of ore type
       where several recovery processes apply.
    4. The metallurgical recovery applicable for each deposit and the cut-off
       grades used to determine Reserves additions as at June 30, 2010 are as
       follows:

                                  Au              Ag
                       Metallurgical   Metallurgical                 Cut-off
    Mine                 Recovery (%)    Recovery (%)               Grade g/t
    -------------------------------------------------------------------------
    Los Molinas Mill              96              82        (greater than)2.0
    Los Molinas Pit
     Fine Crush                   82              72    (greater than)0.7-2.0
    Los Molinas Coarse
     Crush                        60              35  (greater than)0.18-0.70
    -------------------------------------------------------------------------
    Sta. Eduviges, Sta.
     Juliana, Belen               96              82                      2.0
    -------------------------------------------------------------------------

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

    5. The Los Molinas Open Pit strip ratio is 5.5:1.
    6. The basis for the reserve estimation is the Whittle pit optimization
       methodology.
    7. Sums may not add to totals due to rounding.

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., +1-416-646-3825; Anne Day,
Director of Investor Relations, Gammon Gold Inc., +1-902-468-0614

For further information: For further information: please contact: Rene Marion, President & Chief Executive Officer, Gammon Gold Inc., +1-416-646-3825; Anne Day, Director of Investor Relations, Gammon Gold Inc., +1-902-468-0614