SEC Declares Gammon Gold F-4 Registration Statement Effective; Capital Gold Mails Proxy Statement to Stockholders Seeking Approval of Merger Agreement With Gammon Gold

Filed by Gammon Gold Inc. Pursuant to Rule 425 under the Securities Act of 1933 and deemed filed pursuant to Rule 14a-12 under the Securities Exchange Act of 1934

TORONTO, February 22, 2011 - Gammon Gold Inc. ("Gammon") (TSX: GAM) (NYSE: GRS) announced today that
the Securities and Exchange Commission ("SEC"), on February 17, 2011,
declared effective Gammon's Registration Statement on Form F-4 regarding the
previously announced proposed merger with Capital Gold Corp. ("Capital
Gold"). The registration statement includes a proxy statement/prospectus
relating to the Capital Gold stockholder vote required to approve the merger
and covering shares of Gammon's common shares to be issued to Capital Gold
stockholders under the terms of the merger agreement. Last week, Capital Gold
began mailing the proxy statement/prospectus to its stockholders of record as
of February 14, 2011, seeking approval of the adoption of the merger
agreement at the March 18, 2011 special meeting of its stockholders.

Additional Information About the Merger and Where to Find It

The proposed merger transaction involving Gammon Gold Inc. and Capital
Gold Corporation will be submitted to Capital Gold Corporation's stockholders
for their consideration. Gammon Gold Inc. has filed with the SEC a
Registration Statement on Form F-4 containing a definitive proxy
statement/prospectus and each of Gammon Gold Inc. and Capital Gold
Corporation may file with the SEC other documents regarding the proposed
transaction. Stockholders are encouraged to read the definitive proxy
statement/prospectus regarding the proposed transaction, as well as other
documents filed with the SEC because they contain important information.
Stockholders may obtain a free copy of the definitive proxy
statement/prospectus, as well as other filings containing information about
Gammon Gold Inc. and Capital Gold Corporation, without charge, at the SEC's
Internet site (www.sec.gov). Copies of the definitive proxy
statement/prospectus and the filings with the SEC that are incorporated by
reference in the definitive proxy statement/prospectus can also be obtained
without charge, by directing a request to Gammon Gold Inc., Investor
Relations, 56 Temperance Street, Suite 501, Toronto, Ontario, M5H 3V5,
Canada, or to Capital Gold Corporation, Investor Relations, 76 Beaver Street,
14th floor, New York, New York 10005.

Gammon Gold Inc., Capital Gold Corporation, their respective directors
and executive officers and other persons may be deemed to be participants in
the solicitation of proxies in respect of the proposed transaction.
Information regarding Gammon Gold Inc.'s directors and executive officers is
available in its Annual Report on Form 40-F for the year ended December 31,
2009, which was filed with the SEC on March 30, 2010, as amended by Amendment
No. 1 to Annual Report on Form 40-F/A, which was filed with the SEC on May
13, 2010, in its notice of annual meeting and proxy circular for its most
recent annual meeting, which was filed with the SEC on April 15, 2010, and
the above-referenced Registration Statement on Form F-4, which was filed with
the SEC on February 15, 2011. Information regarding Capital Gold
Corporation's directors and executive officers is available in Capital Gold
Corporation's Form 10-K/A, which was filed with the SEC on November 23, 2010.
Other information regarding the participants in the proxy solicitation and a
description of their direct and indirect interests, by security holdings or
otherwise, is contained in the definitive proxy statement/prospectus and
other relevant materials filed with the SEC.

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.

For further information please visit the Gammon gold website at
www.gammongold.com or contact:

                              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.

This communication contains statements that constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995 and comparable "safe harbour" provisions of applicable Canadian
legislation. These statements are based on the current expectations and
beliefs of the Company and are subject to a number of risks, uncertainties
and assumptions that could cause actual results to differ materially from
those described in the forward-looking statements. All statements other than
statements of historical fact are statements that could be deemed
forward-looking statements. The following factors, among others, could cause
or contribute to such material differences: the ability to obtain the
approval of the transaction by Capital Gold stockholders; the ability to
realize the expected synergies resulting from the transaction in the amounts
or in the timeframe anticipated; the ability to integrate Capital Gold's
businesses into those of Gammon Gold Inc. in a timely and cost-efficient
manner; the ability to obtain governmental approvals of the transaction or to
satisfy other conditions to the transaction on the proposed terms and
timeframe; and the outcome of pending litigation related to the proposed
acquisition of Capital Gold Corporation. Additional factors that could cause
Gammon Gold Inc. and Capital Gold's results to differ materially from those
described in the forward-looking statements can be found in the 2009 Annual
Report on Form 40-F, as amended by Amendment No. 1 to Annual Report on Form
40-F/A, for Gammon Gold Inc. and the Annual Report on Form 10-K, as amended
by Form 10-K/A, of Capital Gold for the fiscal year ended July 31, 2010 filed
with the SEC and available at the SEC's Internet site (www.sec.gov).

For further information:

    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

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