Gammon Gold Provides Updated Ocampo Production and Cash Cost Outlook for 2010

TSX: GAM / NYSE: GRS / BSX: GL7

HALIFAX, Canada, June 28, 2010 - Gammon Gold Inc. ("Gammon") (TSX:GAM and NYSE:GRS): announces that
due to the suspension of operations at the El Cubo mine located in
Guanajuato State, Mexico, it is providing an updated 2010 production and
cash cost outlook for the Ocampo mine. This adjusted outlook
has assumed that the 154 contract workers and key pieces of underground
mining equipment recently re-deployed from El Cubo will be supporting
expanded operations at Ocampo to the end of the year.

In 2010, at Ocampo, the Company expects to produce 100,000 to 110,000
ounces of gold and 4.40 to 4.95 million ounces of silver, or 180,000 to
200,000 gold equivalent ounces, using a gold-to-silver ratio of 55:1. Total
cash costs for 2010 are expected to be $425 to $450 per gold equivalent ounce
using the same gold-to-silver ratio of 55:1. Production from Ocampo for the
remainder of 2010 will be supported by:

    - 154 contract miners, including supervisors, surveyors, geologists
      and maintenance personnel, as well as 30 pieces of key underground
      mining fleet equipment from El Cubo have been redeployed to the Ocampo
      mine to expand underground operations. The workers are currently on
      site at Ocampo and are expected to have an immediate positive impact
      on operations as they become part of the regular rotation within the
      week.

    - These additional workers and equipment will be deployed to focus
      primarily on advancing development at the Santa Eduviges, Belen, San
      Amado, Jesus Maria, Maria, Molinas Southwest, Rosario, and the
      southern extensions of Aventurero discoveries. These recent
      discoveries are not included in the 2009 Reserve and Resources
      statement.

    - Development activities at the Santa Eduviges underground mine are well
      advanced and currently accessing development ore. Production of
      approximately 250 tonnes per day is anticipated later in the second
      half of 2010 that should provide additional high grade underground ore
      feed to the mill facility.

    - The Phase III Ocampo mill expansion was commissioned in the second
      quarter of 2010 and in June the mill was operating at its targeted
      rate of between 3,300 and 3,400 tonnes per day with gold and silver
      recoveries currently at 95% and 82% respectively. Operations at the
      mill facility are expected to maintain steady-state productions levels
      over the balance of the year.

    - In late June, the Company completed pre-stripping activities at the
      Refugio open pit, one of three open pits scheduled for production in
      2010. As a result, ore is now being accessed from all three operating
      pits.

    - We have accessed higher grade mineralization in the Picacho open pit
      during the second half of 2010. This high grade ore will provide
      additional ore feed for the mill facility.

    - The heap leach expansion program was completed during the second
      quarter and stacking rates have increased to targeted levels of over
      10,000 tonnes per day during June. Stacking rates are expected to
      increase to 11,000 to 12,000 during the third quarter of 2010.

     ------------------------------------------------------------------------
     ------------------------------------------------------------------------
                     Gammon Gold - 2010 Production Outlook
     ------------------------------------------------------------------------
     Production:                                             2010
     ------------------------------------------------------------------------
        Gold Ounces                                   100,000 to 110,000
     ------------------------------------------------------------------------
        Silver Ounces                               4,400,000 to 4,950,000
     ------------------------------------------------------------------------
        Gold Equivalent(1)                            180,000 to 200,000
     ------------------------------------------------------------------------
     Cash Cost per Gold Equivalent Ounce(1)(2)           $425 to $450
     ------------------------------------------------------------------------
       1. Assumes a 55:1 gold-to-silver ratio
       2. Assumes a foreign exchange rate of 12.5 Mexican pesos to one U.S.
          dollar
     ------------------------------------------------------------------------
     ------------------------------------------------------------------------

"Operations at Ocampo continue to stabilize at targeted levels and the
redeployment of our top contract workers and equipment from El Cubo will
provide immediate and supplemental operational support to Ocampo. This
expanded operating team will allow us to accelerate development of our new
discoveries at Santa Eduviges, Belen and our many other promising targets"
stated Rene Marion, President & Chief Executive Officer of Gammon Gold.
"Management's focus for the balance of the year will be on expanding
productivity at our Ocampo mine as well as bringing new discoveries into
production in 2011 and the acceleration of exploration programs at our
properties."

About Gammon Gold

Gammon Gold Inc. is a 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 owns the El Cubo mine
in Guanajuato State and has the promising Guadalupe y Calvo development
property in Chihuahua State. The Company recently completed option purchase
agreements to acquire the Mezquite Project in Zacatecas State, Mexico and the
Venus Project located north of the Ocampo mine in Chihuahua State, Mexico. It
also has recently signed a Letter of Intent to acquire the Los Jarros Project
in Chihuahua State, Mexico. The Company is based in Halifax, Nova Scotia with
an Executive Office 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.

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