Gammon Gold Announces the Discovery of New Drill Targets and the Launch of a Drilling Program at the Venus Project

TSX: GAM / NYSE: GRS / BSX: GL7

TORONTO, October 28, 2010 - Gammon Gold Inc. ("Gammon") (TSX:GAM and NYSE:GRS): is pleased to
announce the discovery of additional drill targets at the Venus project
located in the Ocampo - Pinos Altos region and the launch of a strategic
drilling program.

VENUS PROJECT UPDATE

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By the end of Q3, the Company had completed geologic mapping over
approximately 40% of the mineral rights, completed a 110-sample
stream-sediment geochemistry program and a 2,019 sample rock-chip geochemical
program. This work has successfully identified three significant drill
targets within the Company's properties. These drill targets have strong
gold-silver geochemical anomalies, favorable structural features similar to
the setting of the Ocampo mines and are of sufficient size to cover
potentially attractive economic mineralization.

    La Boleta, Venus Project

    - 171 samples averaging 1.52 grams per tonne gold, 21 grams per tonne
    silver, or 1.90 grams per tonne gold equivalent(1) (gold values were
    capped at 8 grams per tonne)

At the La Boleta target, the Company has now collected 703 rock samples
on its properties, of which 171 samples (24%) had greater than or equal to
0.20 grams per tonne gold. Maximum values in this sampling were 25.08 grams
per tonne gold and 210 grams per tonne silver. La Boleta is a 2,100 metre
long target zone of combined vein and sheeted stockwork occurrence with
mineralization partly hosted in the outer portion of a rhyolite dome, a
setting considered very favorable for bulk-mineable gold-silver deposits
geologically similar to La Pitarilla (Silver Standard) and San Julian
(Fresnillo, PLC).

    Santo Nino, Venus Project

    - 150 samples averaging 1.16 grams per tonne gold and 7 grams per tonne
    silver, or 1.29 grams per tonne gold equivalent(1) (gold values were
    capped at 8 grams per tonne).

At the Santo Nino target a vein system ranging up to 30 metre wide has
been mapped over a 2,400 metre strikelength. The Company has collected 301
rock samples from this target, of which 150 (50%) contained greater than or
equal to 0.20 grams per tonne gold. Maximum values in this sampling were
55.90 grams per tonne gold and 82 grams per tonne silver, or 56.70 grams per
tonne gold equivalent(1).

    Roncesvalle, Venus Project

    - 29 samples averaging 1.28 grams per tonne gold and 17 grams per tonne
    silver, or 1.58 grams per tonne gold equivalent(1).

A third target called the Roncesvalle Vein has been traced for 180 metres
along strike. To date the Company has collected 49 samples from this vein, of
which 29 (59%) contained greater than 0.20 grams per tonne gold. Previous
historical drilling on the property by Mexicana de Cananea (a subsidiary of
Grupo Mexico) reported encouraging widths of mineralization: hole BDD-5 cut
3.95 metres grading 5.13 grams per tonne gold and 120 grams per tonne silver,
and hole BDD-2 cut 5.50 metres grading 5.50 grams per tonne gold and 70 grams
per tonne silver.

Based on these positive results, the Company is planning to mobilize a
drill rig to the project in the fourth quarter to immediately initiate
drilling on at least two of these target areas, and it is anticipated that
drilling will extend well into 2011.

Note: The Venus Project exploration information has been reviewed by
Qualified Person, Mr. Peter Drobeck. All sample analyses reported herein
(except for the historical drill results by Mexicana de Cananea) were
performed by ALS-Chemex Laboratories, based in Vancouver British Columbia,
using standard fire assay procedures and with AA finish. Drilled lengths do
not necessarily represent true widths. Gammon maintains a Quality Assurance
and Quality Control program that includes insertion of commercially-purchased
pulp control samples and blanks to insure laboratory accuracy.

files.newswire.ca/258/Ocampo.doc

GROWING PORTFOLIO OF PROPERTIES

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The Company's portfolio of properties has been significantly enhanced in
2010 through the addition of four new prospective exploration properties in
Mexico. The Company has expanded its land position in Mexico 81% during 2010
through separate option agreements to acquire the Venus and Los Jarros
properties (located directly north and east of the Ocampo and Pinos Altos
properties), by executing a purchase option on the Mezquite Project in
Zacatecas, through staking a new exploration concession "Fraile Norte" in San
Luis Potosi, and by staking of new concessions west of Ocampo.

"Since acquiring the Venus project our exploration team has been
aggressively conducting geological fieldwork on the Venus project, which is
located directly north of our Ocampo Mine complex. The success of the work
completed to date indicates that a drilling program is justified. With the
required surface access agreement completed, we are now ready to launch a
drilling program on these exciting projects. These new veins, together with
the previously announced discovery of the La Boleta target, have provided us
with the encouragement to begin drilling in the coming month," stated Peter
Drobeck, Senior Vice President of Exploration and Business Development.

This press release sets out the gold and silver grades found in the
samples taken from various targets. Not all of these targets have been
categorized as a mineral resource deposit under applicable Canadian mineral
resource reporting standards, and it is uncertain if further exploration will
result in these targets being delineated as mineral resources. The grades
encountered so far should not be taken as representative of the ore bodies in
question as there has been insufficient exploration to define a mineral
resource, and such grades may not prove representative of the deposits if and
when the same are delineated as mineral resources.

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 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 Jaros 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.

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, 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 its financial
exposure to litigation, targets, estimates and assumptions in respect of gold
and silver production and prices, 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 completion of the Ocampo
expansion program and improvements to the heap leach pad, costs and timing of
the development and commencement of production of new deposits, costs and
timing of construction, costs and timing of future exploration and
reclamation expenses including, anticipated 2010 results, operating
performance projections for 2009 and 2010, our ability to fully fund our
business model internally, 2010 gold and silver production and the cash and
operating costs associated therewith, the ability to achieve productivity and
operational efficiencies, the ability to access grid power at Ocampo, 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.

(1) Gold equivalent ounces using the Company's long-term gold equivalency
ratio of 55:1

For further information: please visit the Gammon gold website at
www.gammongold.com or contact: Peter Drobeck, Sr. VP Exploration &
Business Development, 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: Peter Drobeck, Sr. VP Exploration & Business Development, Gammon Gold Inc., +1-416-646-3825; Anne Day, Director of Investor Relations, Gammon Gold Inc., +1-902-468-0614