Gammon Gold Reports High-Grade Discovery at La Balleza Vein in Venus Project: 0.6m Grading 62.20 Grams per Tonne Gold and 2700 Grams per Tonne Silver

By Gammon Gold Inc., PRNE
Tuesday, April 5, 2011

TORONTO, April 6, 2011 - Gammon Gold Inc. ("Gammon") (TSX: GAM) (NYSE: GRS): Gammon is pleased to
announce that a new discovery of high-grade gold-silver mineralization in the
La Balleza Vein in the north-central portion of the Venus property.

Venus Project Drilling Highlights


Highlights from the 12 holes for which assays have been received include:

- VEN-009, 0.7 metres grading 62.20 grams per tonne gold and 2,700 grams
per tonne silver, or 111.29 grams per tonne gold equivalent(1).

- VEN-004, 0.6 metres grading 8.58 grams per tonne gold and 1,050 grams
per tonne silver, or 27.67 grams per tonne gold equivalent(1).

(1) Using the Company's long-term gold equivalency ratio of 55:1 (which
assumes 100% metallurgical recoveries and royalties for gold and silver).

"We are very encouraged by the early drilling results our Venus Project,
which lies three kilometres directly north of the Ocampo Mine Properties. The
surface work completed to date has shown that there are multiple veins
outcropping with locally very high grades on surface. Results from three
holes drilled on the La Balleza Vein have reported some very high gold and
silver grades on two of those holes." stated Peter Drobeck, Senior Vice
President of Exploration and Business Development. He continued, "As well as
the high-grade discoveries at La Balleza, we are also encouraged by the
surface geology and initial drilling results from the Santo Nino Vein,
located a kilometre south of La Balleza. This vein is locally up to 30 metres
wide of banded and brecciated calcite - quartz, has been traced for 2.4
kilometres along strike and has shown highly anomalous surface sample values
up to 49.80 grams per tonne gold."

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 El Cubo mine in
Guanajuato State and has the promising Guadalupe y Calvo development property
in Chihuahua State. Over the past year Gammon completed option purchase
agreements to acquire the Mezquite Project in Zacatecas State, Mexico, the
Venus project located north of the Ocampo mine, and the Los Jarros Project in
Chihuahua State, and has executed an option to joint venture agreement on the
La Bandera Project in Durango State, Mexico. Since 2008, the Company has
increased its Mexican land position by over 110% 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

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, 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.

TABLE 1: Summary of Positive Drill Intercepts from Venus Project

    Hole_ID From, To,   Length, Au,   Ag,  AuEq(55), Target
            m     m     m       gpt   gpt  gpt

    VEN-001 27.0  28.5  1.5     0.69  1    0.70      La Boleta
    VEN-002 31.2  33.9  2.7     0.45  3    0.50      La Boleta
    VEN-002 45.9  46.4  0.5     2.63  3    2.68      La Boleta
    VEN-004 281.9 282.5 0.6     8.58  1050 27.67     La Balleza
    VEN-004 286.5 287.1 0.6     2.99  150  5.72      La Balleza
    VEN-005 85.7  86.4  0.7     0.07  5    0.16      La Balleza
    VEN-005 89.4  92.4  3.0     0.13  1    0.15      La Balleza
    VEN-005 93.2  93.9  0.8     0.58  4    0.64      La Balleza
    VEN-006 41.0  63.6  22.6    0.14  1    0.15      Veta_Sto_Nino
    VEN-006 63.6  65.5  2.0     5.50  34   6.12      Veta_Sto_Nino
    VEN-006 65.5  97.6  32.1    0.12  0    0.13      Veta_Sto_Nino
    VEN-007 4.0   12.0  8.0     0.23  2    0.27      Veta_Sto_Nino
    VEN-007 134.5 151.2 16.7    0.21  1    0.23      Veta_Sto_Nino
    VEN-009 56.0  60.5  4.5     1.49  18   1.83      La Balleza
    VEN-009 82.5  84.0  1.5     1.89  1    1.92      La Balleza
    VEN-009 109.1 109.8 0.7     62.20 2700 111.29    La Balleza
    VEN-011 292.0 293.6 1.6     1.05  3    1.10      Veta_Sto_Nino
    VEN-012 118.0 137.3 19.3    0.33  1    0.35      Veta_Sto_Nino

Note: The Venus Project information has been reviewed by Qualified
Person, Mr. Peter Drobeck. Sample analyses for Venus Project drilling were
performed by ALS-Chemex Laboratories (based in Vancouver, British Columbia,
using their facility in Hermosillo, Mexico). Gold was analyzed using standard
fire assay procedures with AA finish, and silver by multi-acid digestion with
AA finish. The high gold assays reported herein for drill holes VEN-004 and
VEN-009 had their gold values checked with screen fire assays which are shown
on Table 1 (standard fire assays were slightly higher). The Company has an
established program of inserting certified control samples and blanks in
compliance with best practices, and this program is used at the Venus Project
per Company policies. Sample lengths are not necessarily true widths.

Diagram 1: Location Map of Venus Project in the Ocampo - Pinos Altos -
Concheno Mining District, Western Chihuahua, Mexico. Grey shading indicates
Gammon Gold Inc's mineral land position.

Diagram 2: Location Map of Drill Collars completed by Gammon Gold Inc. on
the Venus Project.

Diagram 3: Cross - Section looking northwest of the La Balleza Vein,
Venus Project, showing newly reported drill intersections.

    For further information:

    please visit the Gammon gold website at or

    Peter Drobeck                             Anne Day
    Sr. VP Exploration & Business Development Director of Investor Relations
    Gammon Gold Inc.                          Gammon Gold Inc.
    +1-416-646-3825                           +1-416-646-3825

For further information: please visit the Gammon gold website at 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. +1-416-646-3825.

New Products / Services News

Gammon Gold Inc. News

will not be displayed