cnw




TORONTO, Feb. 22 /CNW/ - Gammon Gold Inc. ("Gammon" or the "Company") (TSX: GAM) (NYSE:GRS) wishes to provide an
update on recent developments at the Company's El Cubo mine located in
Guanajuato State, Mexico. In response to reports issued by the Mexican
media that have indicated an end to the 8-month labour disruption, the
Company wishes to clarify the status of current negotiations with the
El Cubo union. The Company confirms that advanced negotiations with the
union are currently underway and while the Company is optimistic that a
resolution to the work stoppage will be finalized in the near term, a
definitive agreement with the union has not been reached. As this time,
the union continues to restrict access to the mine facilities. However,
as a sign of good faith, representatives from both the Company and the
union will be inspecting the underground mine facilities today to
determine the possible level of remediation requirements before mining
activities could resume. The Company will provide further updates as
warranted.




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
Report on Form 40-F, which may be secured from Gammon gold, or from the
SEC's website at http://www.sec.gov/edgar.shtml.


No stock exchange, securities commission or other regulatory authority
has approved or disapproved the information contained herein.