Gammon Gold Announces Replacement Credit Facility

HALIFAX, Nov. 9 /PRNewswire/ - Gammon Gold Inc. ("Gammon") (TSX:GAM and
NYSE:GRS): Gammon is pleased to announce that it has restructured and replaced
its prior syndicated credit facility with a standalone US$30 million revolving
line of credit that will be offered 100% through The Bank of Nova Scotia and
will mature 24 months from the date of closing.
The new credit facility terms are expected to enhance Gammon's net cash flow
profile as there will be no principal repayments other than a one-time payment
on the maturity date equal to the drawn loan balance at that point in time.
Rene Marion, Chief Executive Officer and President of Gammon Gold commented,
"We are pleased to have negotiated an increased revolving line of credit
facility with The Bank of Nova Scotia. This facility, when combined with our
recent US$115 million equity financing, ensures that the Company has the
financial base required to accelerate the expanded company-wide exploration
programs in 2010 as well as the next phase of exploration development at our
key Guadalupe y Calvo development property."

About Gammon Gold

Gammon Gold Inc. is a Nova Scotia based 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.

Cautionary Statement

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 Gammon, 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 the closing of
the Offering and the expenditure of the net proceeds therefrom, 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 the development of new deposits, costs and timing of
construction, costs and timing of future exploration and reclamation expenses
including, anticipated 2009 results, operating performance projections for
2009 and 2010, our ability to fully fund our business model internally, 2009
gold and silver production and the cash and operating costs associated
therewith, the ability to achieve productivity and operational efficiencies,
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 Gammon, are
inherently subject to significant business, economic, competitive, political
and social uncertainties and contingencies. Many factors could cause Gammon's
actual results to differ materially from those expressed or implied in any
forward-looking statements made by, or on behalf of, Gammon. 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 Gammon'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.
SOURCE GAMMON GOLD INC.

please visit the Gammon Gold website at www.gammongold.com or contact: Scott
Perry, Chief Financial Officer, Gammon Gold Inc., (902) 468-0614; Anne Day,
Director of Investor Relations, Gammon Gold Inc., (902) 468-0614