Gammon Gold Reports Changes in Foreign Exchange Translations Requiring a Restatement of 2008 and 2009 Financial Statements

No Impact on Earnings Before Other Items or Cash Flow

HALIFAX, Canada, May 13, 2010 - Gammon Gold Inc. ("Gammon") (TSX:GAM and NYSE:GRS): announced today that
it intends to restate and re-file its audited consolidated financial
statements and MD&A for the years ended December 31, 2009 and 2008.

During the preparation of the March 31, 2010 interim consolidated
financial statements, the Company determined that the future income tax
liability arising on the acquisition of Mexgold Resources Inc. on August 8,
2006 was not appropriately translated into Mexican pesos at the time the
transaction occurred, resulting in an error in the Company's consolidated
financial statements for the years ended December 31, 2009 and 2008. There
was no income tax effect as a result of this adjustment. The Company notes
that these changes are of a non-cash nature and do not impact the Company's
cash position or operating activities.

The restatement of the Company's consolidated financial statements will
impact the Company's net earnings and future income tax liabilities for the
years ended December 31, 2009 and 2008. For the year ended December 31, 2009,
the impact of this adjustment was to decrease future income tax liabilities
by USD$14.1 million, and decrease foreign exchange losses by USD$6.5 million.
Net earnings increased by USD$6.5 million and basic and diluted net earnings
per share increased from USD$0.01 to USD$0.07 per share. For the year ended
December 31, 2008, the impact of this adjustment was to decrease future
income tax liabilities by USD$7.6 million, decrease opening deficit by
USD$8.9 million and decrease foreign exchange gains by USD$1.3 million. Net
earnings decreased by USD$1.3 million and basic and diluted net earnings per
share decreased from USD$0.34 and USD$0.33 to USD$0.33 and USD$0.32 per
share respectively.

The re-filing of the restated consolidated financial statements, revised
MD&A and any other required documents is expected to take place on May 13,
2010 and when completed, the restated consolidated financial statements and
the revised MD&A will be available for review under the Company's profile on
SEDAR at www.sedar.com and on EDGAR as part of an amendment to the
Company's Annual Report on Form 40-F for the year ended December 31, 2008, at
www.sec.gov/edgar.shtml. Upon request, following the filing of the
amendment to the Company's Annual Report on Form 40-F, the Corporation will
provide a hard copy of the Company's restated audited consolidated financial
statements free of charge.

The Company's previously filed consolidated financial statements for the
years ended December 31, 2009 and 2008 and the auditors' report thereon,
together with the auditors' report on the effectiveness of internal controls
over financial reporting as of December 31, 2009, should no longer be relied
upon. Financial information for the years ended December 31, 2009 and 2008
which is contained in, or incorporated by reference in, any disclosure
document previously filed by the Company, is superseded by the information
contained in the amended and restated financial statements described herein.

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 operates its El Cubo
operation in Guanajuato State and has the promising Guadalupe y Calvo
development property in Chihuahua State. The Company recently completed a
purchase option agreement to acquire the Mezquite Project ("Mezquite") in
Zacatecas 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/(GAM. GRS)

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