Gammon Gold Announces Option Agreement to Acquire the Mezquite Property in Zacatecas State, Mexico

HALIFAX, Canada, March 23, 2010 - Gammon Gold Inc. ("Gammon") (TSX:GAM and NYSE:GRS): Gammon is pleased to
announce that it has signed definitive purchase option agreements on a group
of properties called the Mezquite Project ("Mezquite") in Zacatecas State,
Mexico.

The Mezquite Project, in Zacatecas State, covers 460 hectares and is
located 45 kilometres southeast of Goldcorp's Penasquito property and 22
kilometres northeast of Camino Rojo (Goldcorp recently announcing its
acquisition of Camino Rojo) as shown on the attached location map.
(files.newswire.ca/258/Mezquite_Project_Map.doc) Zacatecas is
currently one of the most active exploration states in Mexico. The property
lies on a 70 kilometre belt with over 27.4 million ounces of gold and 1,611
million ounces of silver, or approximately 57 million gold equivalent ounces
at a gold-to-silver ratio of 55:1, in published reserves and resources in all
categories. The property occurs along a major north north-east striking
lineament running from the Concepcion del Oro mining district to the Camino
Rojo discovery that terminates a series of curvilinear thrust-belt related
mountain ranges.

The Mezquite property includes Cerro La Llorona, a hill that consists of
an altered intrusive with two adjacent breccia pipes cutting into
skarn-altered and silicified Caracol Formation, a favorable host-rock in the
Concepcion del Oro district as well as the colluvial-covered flat areas to
the south. Gammon's initial geochemical sampling from skarns on La Llorona
showed values up to 0.14 grams per tonne gold, 0.75% lead, and 0.58% zinc
from the skarn alteration. Samples from the felsic breccia pipe showed values
up to 0.35 grams per tonne gold, 0.14% lead, and 0.41% zinc in outcrop. The
intrusive and related breccias pipes occur along the south side of the hill,
suggesting that the alteration system is open to the south. The combination
of altered breccia pipes and anomalous gold-lead-zinc geochemistry alongside
a large covered valley is analogous to the exploration model for ore deposits
in this very productive gold belt. The Mezquite project has excellent
infrastructure, being located next to a paved highway and existing electric
power access.

The option agreements include a series of option payments that totals US$
1.4M over a 3-year period.

"Gammon began a grass roots exploration program in 2009 designed to
identify strategic exploration opportunities in Mexico. This program involved
a review of existing projects as well as consideration of regional targets.
As part of this program, our exploration team identified the Mezquite Project
as an excellent target to host Penasquito-like mineralization." stated Peter
Drobeck, Senior Vice President of Exploration & Business Development. He
continued, "In the coming months the Company intends to complete first-stage
ground geophysics and drilling on the project to test the covered area along
the key Cerro La Llorona outcrop."

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
Guadalupe y Calvo development 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/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 Gammon, 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 its financial
exposure to litigation, targets, estimates and assumptions in respect of gold
and silver production and prices, cash and 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, anticipated 2009 year-end and 2010
results, operating performance projections for 2009 and 2010, our ability to
fully fund our business model, including our capital program and exploration,
internally, 2009 and 2010 gold and silver production and the cash and
operating costs associated therewith, the ability to achieve productivity and
operational efficiencies, the ability to achieve cash flow margin
improvements, further reduction in the open pit stripping ratio, the ability
to develop and put into production our exploration targets, and the timing of
each thereof. Forward-looking statements are necessarily based upon a number
of estimates and assumptions that, while considered reasonable by Gammon, are
inherently subject to significant business, economic, competitive, political
and social uncertainties and contingencies. Many factors could cause Gammon's
actual results to differ materially from those expressed or implied in any
forward-looking statements made by, or on behalf of, Gammon. 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 Gammon'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.

For further information: please visit the Gammon Gold website at
www.gammongold.com or contact: Rene Marion, 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: please visit the Gammon Gold website at www.gammongold.com or contact: Rene Marion, Chief Executive Officer, Gammon Gold Inc., +1-416-646-3825; Anne Day, Director of Investor Relations, Gammon Gold Inc., +1-902-468-0614