Gammon Gold Reports Numerous New Drill Intercepts at the Guadalupe y Calvo Rosario Vein Northwest Extension, Including 5.0 Metres Grading 8.96 Grams per Tonne Gold and 587 Grams per Tonne Silver and 2.0 Metres Grading 8.64 Grams per Tonne Gold and 656 Grams per Tonne Silver

TORONTO, March 7, 2011 - Gammon Gold Inc. ("Gammon") (TSX:GAM and NYSE:GRS): Gammon is pleased to
announce that its ongoing drilling at the Guadalupe y Calvo Project in
southern Chihuahua State, Mexico, continues to intercept high-grade
gold-silver mineralization in the Northwest Extension of the Rosario Vein.

    Guadalupe y Calvo Drilling Highlights

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    Highlights from the 32-hole program include:

    - Hole GC-185, 1.1 metres grading 62.37 grams per tonne gold plus 56
    grams per tonne silver, or 63.39 grams per tonne gold equivalent(1).

    - Hole GC-203, 5.0 metres grading 8.96 grams per tonne gold plus 587
    grams per tonne silver, or 19.63 grams per tonne gold equivalent(1).

    - Hole GC-207, 2.0 metres grading 8.64 grams per tonne gold plus 656
    grams per tonne silver, or 20.56 grams per tonne gold equivalent(1).

    - Hole GC-215, 1.1 metres grading 19.21 grams per tonne gold plus 73
    grams per tonne silver, or 20.53 grams per tonne gold equivalent(1).

"We are very encouraged by the mineralization discovered in the Rosario
Northwest Extension as it increases the length of the high grade
mineralization a further 500 meters from the 2008 drilling program. The
Northwest Extension has never been previously explored as the vein occurs
below the post-mineral tuffs." stated Peter Drobeck, Senior Vice President of
Exploration and Business Development. Mr. Drobeck continued, "Due to the
success of the drilling program over the past 8 months, the Board of
Directors have approved a budget of US$4.0 to US$5.0 million for 2011 to
develop this new discovery. In addition, the Preliminary Economic Assessment
is now being expanded to include these new and encouraging drill results."

Since resuming the drilling program at Guadalupe y Calvo in April 2010,
the Company has drilled an additional 40 diamond drill holes (22,513 metres),
of which 32 holes (19,721 metres) were drilled on the Northwest Extension of
the Rosario system. The average of the 21 intercepts that reported over a 2.5
grams per tonne gold equivalent(1)cutoff is 1.9 metres grading 6.85 grams per
tonne gold and 188 grams per tonne silver, or 10.36 grams per tonne gold
equivalent(1). This step-out drilling is testing the extension of the major
vein system at Guadalupe y Calvo underneath a thick series of post-mineral
volcanic tuffs. The work has been very successful in discovering and
delineating a wide zone of sheeted to locally stockworked vein system,
ranging from more than 10 to over 100 meters in width, within which are
narrower zones of high-grade mineralization that meet current underground
cut-off grades at the Company's other underground operations. The expanded
PEA is expected to be released during the second quarter of 2011.

(1) Using the Company's long term gold equivalency ratio of 55:1

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 suspended 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, 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, future exploration results of its
exploration and development program at Guadalupe y Calvo, 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:
    Drill Results - Guadalupe y Calvo 2010 - 2011 (For Inclusion in the PEA)

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    Drill Hole   From     To    Length  Gold   Silver  Gold eq.
                  (m)     (m)    (m)    (g/t)   (g/t)  (g/t)(1)     Vein
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    (x)GC-0183   207.4   208.4    1.0    0.90     99    2.70   Rosario NW EXT
    -------------------------------------------------------------------------
    (x)GC-0183   213.4   215.4    2.0    6.18     14    6.43   Rosario NW EXT
    -------------------------------------------------------------------------
    (x)GC-0185   386.6   395.8    9.2    7.67     28    8.18   Rosario NW EXT
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    (x)Including 386.6   387.7    1.1   62.37     56   63.39   Rosario NW EXT
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    (x)GC-0188   709.0   717.2    8.2    3.97     73    5.77   Rosario NW EXT
    -------------------------------------------------------------------------
    (x)Including 710.2   711.6    1.4   24.04    307   29.63   Rosario NW EXT
    -------------------------------------------------------------------------
    (x)GC-0188   742.0   743.0    1.0    2.69     16    2.98   Rosario NW EXT
    -------------------------------------------------------------------------
    GC-0192      274.3   275.7    1.4    1.95     19    2.29   Rosario NW EXT
    -------------------------------------------------------------------------
    GC-0196      546.0   547.0    1.0    2.79      3    2.85   Rosario NW EXT
    -------------------------------------------------------------------------
    GC-0197      290.0   294.0    4.0   15.90   1225   38.18       Rosario SE
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    GC-0197      298.7   299.7    1.0    3.11    428   10.89       Rosario SE
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    GC-0197      305.7   306.7    1.0    1.38    174    4.54       Rosario SE
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    GC-0201      716.5   717.5    1.0    1.49     38    2.18   Rosario NW EXT
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    GC-0202      510.8   511.4    0.6    3.76     13    4.00   Rosario NW EXT
    -------------------------------------------------------------------------
    GC-0203      553.0   558.0    5.0    8.96    587   19.63   Rosario NW EXT
    -------------------------------------------------------------------------
    GC-0203      577.8   579.4    1.6    1.08    188    4.50   Rosario NW EXT
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    Including    585.9   587.3    1.4    1.23    105    3.14   Rosario NW EXT
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    GC-0204      607.4   608.4    1.0    1.84    136    4.31   Rosario NW EXT
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    GC-0207      521.8   523.8    2.0    2.58    205    6.31   Rosario NW EXT
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    GC-0207      527.8   529.8    2.0    8.64    656   20.56   Rosario NW EXT
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    GC-0207      533.3   536.3    3.0    4.06    274    9.04   Rosario NW EXT
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    GC-0208      592.7   593.2    0.5    2.06     78    3.47   Rosario NW EXT
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    GC-0209      300.6   301.2    0.5    5.56     66    6.76   Rosario NW EXT
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    GC-0213     307.25  309.25      2    3.74     21    4.12   Rosario NW EXT
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    GC-0215      383.6   391.7    8.1    2.75     23    3.17   Rosario NW EXT
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    Including    389.6   390.7    1.1   19.21     73   20.53   Rosario NW EXT
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    GC-0215      549.3   550.3      1    2.60      1    2.62   Rosario NW EXT
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    (x)Previously reported
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Note: The Guadalupe y Calvo information has been reviewed by Qualified
Person, Mr. Peter Drobeck. Sample analyses for Guadalupe y Calvo drilling
were performed by both SGS Laboratories (based in Mississauga, Ontario using
their facility in Durango, Mexico), and at 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 Company has an established
program of inserting certified control samples and blanks in compliance with
best practices, and this program was used at Guadalupe y Calvo per Company
policies. Sample lengths are not necessarily true widths.

To view Figure 1: Guadalupe y Calvo-Rosario Vein Long Section & Drilling
Plan please visit: files.newswire.ca/258/GyCsection.pdf

For further information: 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., +1-416-646-3825

For further information: 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., +1-416-646-3825