Gammon Gold Provides Update on El Cubo Return to Operations

TORONTO, March 10, 2011 - Gammon Gold Inc. ("Gammon" or the "Company") (TSX: GAM) and (NYSE:GRS)
wishes to provide an update on recent activities at the El Cubo mine. As
previously announced on February 23, the labour disruption at the El Cubo
mine was successfully resolved after a more productive and standardized
Collective Agreement was negotiated with the union.

Since February 22, management regained access to the mine facilities and
immediately began an exhaustive infrastructural and ground control assessment
to develop an operations plan that would allow production to recommence as
soon as possible. This review has been completed and mine conditions were
found to be better than originally anticipated such that the Company fully
expects to begin development work in April.

As part of the operations plan, the rehiring process is largely completed
with over 250 workers undergoing a two week common core training program at
the University of Guanajuato. Once finished, they will immediately be
assigned to the mining workforce at El Cubo.

"We are delighted with the progress we have made in such a short time
period and that mine conditions were better than we had expected. We
anticipate taking delivery of the majority of required operating supplies
later next week and we began moving non-utilized underground mining equipment
that had been previously stored at Ocampo during the labour disruption back
to El Cubo." stated Russell Tremayne, Chief Operating Officer. He continued,
"Additionally, we believe that the training programs will ultimately foster a
work environment that supports both higher productivity and underpins our
dedication to safety."

On March 28, 2011, the Company will provide a more definitive timeline on
when production will recommence as well as an updated operational strategy.

About Gammon Gold

Gammon Gold Inc. is a mid-tier gold and silver producer with properties
in Mexico. Gammon's flagship Ocampo Property is located in Chihuahua State.
Gammon also owns the El Cubo mine in Guanajuato State and the Guadalupe y
Calvo development property in Chihuahua State. In 2010 Gammon completed
option purchase agreements to acquire the Los Jarros and Venus Projects
located directly north and east of the Ocampo mine, the Mezquite Project in
Zacatecas State, and has signed a binding Letter of Intent to joint venture
into the La Bandera gold project in Durango State. The Company 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/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, the ability and timing of
recommencing production and exploration activities at El Cubo, the ability to
realize operational and cost efficiencies at El Cubo, future exploration
results of its development program, the Company's ability to delineate
additional resources and reserves as a result of such program, and the
company's ability to mine such targets by mid-2011, 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 2010 and 2011, 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.

For further information: please visit the Gammon gold website at
www.gammongold.com or contact: Rene Marion, President and CEO, Gammon
Gold Inc., +1-416-646-3825; Anne Day, Director of Investor Relations, Gammon
Gold Inc., +1-416-646-3825

(GAM. GRS)

For further information: please visit the Gammon gold website at
www.gammongold.com or contact: Rene Marion, President and CEO, Gammon
Gold Inc., +1-416-646-3825; Anne Day, Director of Investor Relations, Gammon
Gold Inc., +1-416-646-3825