9/10/2009

Gammon Gold Presentation

Denver Gold Forum September 2009 1

Forward Looking Statements

Forward Looking Statements
This presentations includes certain “forward-looking statements”. All statements other than statements of historical fact, included in this
presentation, are forward-looking statements that involve risks and uncertainties. Forward-looking statements include, among other things,
statements regarding 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 reclamations expenses.. There can be no assurance that such statements will prove to be accurate and actual results
and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ
materially from Gammon Gold’s expectations include, among others, risks related to international operations, the actual results of current
exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future
prices of gold and silver, as well as those factors discussed in the section entitled “Risk Factors” in Gammon Gold’s Form 40-F as filed with the
United States Securities and Exchange Commission. Although Gammon Gold has attempted to identify important factors that could cause actual
results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no
assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

Cautionary Note to US Investors Concerning Estimates of Measured, Indicated and Inferred Resources
This presentation uses the terms “Measured”, “Indicated” and “Inferred” Resources. U.S. investors are advised that while such terms are
recognized and required by Canadian regulations, the Securities and Exchange Commission does not recognize them. “Inferred Resources” have a
great amount of uncertainty as to their existence and as to their economic and legal feasibility. It cannot be assumed that all or any part of an
inferred resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Resources may not form the basis of
feasibility or other economic studies. U.S. investors are cautioned not to assume that all or any part of Measured or Indicated Resources will ever
be converted into reserves. U.S. investors are also cautioned not to assume that all or any part of an Inferred mineral Resource exists, or is
economically or legally mineable.

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Gammon Properties in Mexico

Ocampo (11,262 Ha)
• World Class Mining District
• Historical Production of:
• 3.5M ounces Gold / 50M ounces Silver
• One of the largest gold mines in Mexico

El Cubo (14,087 Ha)

•World Class Mining District
Guadalupe y Calvo (66,883+ Ha) •Over 400 years of Production
•Exploration Property •Historical Production of:
•Historic Production of: •5M ounces Gold / 1.2B ounces Silver
• 2M ounces Gold / 28M ounces Silver
•Historic grades: 37 g/t Gold / 870 g/t Silver

Total Land Package: 92,200+ Ha

3

2008 – Focus on Productivity & Cash Flow

2008: A Turnaround Year for Gammon 2008 Strategic Achievements
Record Operating Performance Corporate:
 Renegotiated credit facility during credit crisis
Production 2008 2007 % Change
 Margins improved from $29/oz to $336/oz
Gold (oz) 154,428 121,387 12%
 Listed on NYSE, October 2008
Silver (oz) 5,778,874 5,035,704 15%
 Presidential Decree for Ocampo land package
Gold Eq. (oz) 251,510 218,734 15%
received
Gold Eq. Ratio 59:1 52:1 13%
Ocampo:
Cash Costs 2008 2007 % Change
 Increased productivity
Cash Costs (per Gold eq oz) $528 $670 (21%)  Improved working capital position
Cash Costs (per Gold oz) $313 $649 (52%)  Reduced cost structure
Long Term Gold Eq. (55:1) 2008 2007 % Change  Improved drilling densities by 150% (25 x 40m)
Gold Eq. (oz) 259,498 212,945 22% on reserves in open pits
Cash Costs (per Gold Eq. oz) $512 $688 (26%)  Delineated high grade zones supporting
Average Price 2008 2007 % Change optimal mill capacity
Gold ($/oz) $864 $699 24%  Launched expansionary program
Silver ($/oz) $14.66 $13.42 9% El Cubo:
2008 2007 % Change  Consolidated operations to Las Torres Mill
EBITDA ($M) $53.9 ($18.2) 396%  Increased insitu mining by 55%
Earnings per Share $0.34 ($0.90) 138%  Reduced workforce by 29%
Operating Cash Flow ($M) $55.9 ($34.2) 263% Guadalupe y Calvo:
 Resumed exploration program
 Started engineering 4

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H1 09 - Capital Expansion at Ocampo

H1 2009: Focus on Completing Expansion Program at Ocampo
H1 2009 Priorities & Achievements
 Ocampo Strategic Mill Expansion Program
 Phase I – 2,400-2,600 tpd (Nov/08)
 Phase II – 2,600-2,800 tpd (Mar/09)
 Phase III – 3,300-3,400 tpd (Q3, 2009)
 Mill capacity increased by 165% for $4.7M investment
 Aggressive cost management philosophy
 Improved cost profile
 Costs of $454 per AuEq ounce ($210 per gold ounce)
32% improvement over 2007
 Heap Leach upgrade to more efficient conveyor stacking
system (Q3 2009)
 Engineering completed to Increase heap leach stacking
capacity by 10MT to 14MT
 CFE power access completed (Jul 15/09) and all areas of
Ocampo are currently accessing grid power
 Underground development ahead of plan
 Launched aggressive 123,000m exploration program 5

H2 2009 Ocampo Strategic Objectives

Leveraging Growth Potential at Ocampo
 Ramp up underground mine to 1,000 tpd 120,000
2009 Daily Avg. Open Pit Tonnes per Day

by Q4 2009 and 1,500 tpd in Q1 2010

100,000
 Leverage increased mill and heap leach
100,000
97,061
93,507
93,252

89,051

processing capacity
87,315

80,000
81,171

 Deliver cost benefit from 20MW CFE grid

71,080
66,086

60,000
power
 Complete 123,000 metre exploration 40,000
Jan Feb Mar Apr May Jun Jul Aug SepMTD
(as of Sept
program 8/09)

 Complete Picacho Open Pit pre-strip for 2009 Daily Avg. Underground Tonnes per Day
Q4 ore access 800
800
 Continued cost reduction initiatives 700
600
 Re-negotiate contracts 552 577
500 535
 Reduce on-site contractors 400 422
300
200
Q1 2009 Q2 2009 Jul-09 Aug-09 SepMTD
(as of Sept 8/09)

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Ocampo Underground

 Average 800 tpd during September (as of Sept. 8)

 8 longhole stopes producing or being drilled
 9,867 metres of lateral development to date
 Over 2,900m of air and water pipes replaced
 33 headings ready for jumbo development and a
further 17 for jackleg headings
 Crews for 3 longhole drill rigs fully manned
 Two more longhole drills to arrive Sept 2009
 A drilled inventory of 16,821 tonnes ready to blast
 Over 256,000 tonnes in prep or production stage
 Specialized blasting crews being trained
 100 new miners recruited

Ocampo Open Pits

 Refugio phase 1 is in
End of July´09 surface and designed pits
ore production
 More than 80% of
ore is mined from Estrella Refugio phase 3
Phase 1
PDG Picacho phase 1
 Plaza de Gallos will Conico

connect Refugio and

Picacho
 reduces distance to
crusher by the end N
Picacho phase 3
of 2009
 Picacho Phase 1 and 2
 Phase 1 is currently pre-stripping waste(final pit)
 Phase 2 will access the VHG area with a switchback connection
 Pits not been mined in 2009
 Conico – Estrella - Refugio Phase 3 (final pit) - Picacho Phase 3 (final pit)

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Ocampo Heap Leach Conveyor System

 Modified to valley leach design
 Replaces 12 grasshopper
conveyors
New
Overland  Allows extra 10 million tons on
virtually same footprint
 Estimated Capex cost $US1.5M
or $0.11/tonne
 Enables heap extension both in
height and to the west
 Removes all semi permanent
structures from the stacked face
 Allows resumption of 10-12,000
tpd stacking rate, started
ramping up production in
Aug/09

Ocampo Phase III Mill Expansion to

3,300 – 3,400tpd

 Commissioning in Q3
 Knelson Concentrator
installed
 Third filter press being
installed
 Total cost to increase
capacity from 1,200
tpd in 2007 to 3,300-
3,400 tpd for $4.7M

10

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El Cubo Strategic Objectives

El Cubo Productivity Enhancements
 Reduced workforce by over 29% in 2008
 Consolidated operations to Las Torres
facility
 Peñoles Las Torres Negotiations complete
 Extends lease for 5 years
 Allows accelerated development of
Guadalupe y Calvo by having access
to 2 processing facilities currently on
care & maintenance
 Leverage 7-day continuous work schedule
 Further optimization of workforce
 Launched exploration drilling on new
targets
 Aggressive cost containment strategy

11

2009 Exploration Update

The 2008-2009 Exploration Ocampo
program was the first program • Completed 81.5+km drilling on four exploration targets (Aug/09)
• Four grassroots targets:
undertaken in several years • Altagracia, Belen, Picacho SE and Las Molinas
• Las Molinas numerous positive drill intercepts
• First surface drill intercept on San Amado at UG cut-off grade
• Drainage geochem discovered high-amplitude Au anomaly in
NW part of property

Chihuahua State
Guadalupe y Calvo
• Fieldwork in NW part San Luis Concession
discovered stockwork veining
Guanajuato State

El Cubo
• Q3 – Q4 program designed and AFE approved MEXICO CITY
• Drilling initiated at Dolores SE

12

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2009 Ocampo Exploration Program

 Mapped entire Ocampo land package
 14 new drill targets identified
 Major anomaly identified in NW Surface-Mapped 2009 NE Veins Drill
Veins remaining Program
Priority New Discovery Drilling Targets to be drill-tested
First Priority
 Las Molinos – Altagracia - Picacho SE - Las Molinas
San Amado - Santa Librada San Amado
1611 Level Existing
Belem
Workings
Second Priority
Los Monos,
Rosario,
Aventurero

123,000 metre drilling program

 conversion of pit inferred resources to
reserves
 new grass root open pit targeting
 conversion of down-dip and on strike
underground resources to reserves
 new grass root underground veins targeting
(10 new veins over 6 kms identified)
 81.5km (66%) completed to date
13

2009 El Cubo Exploration Program

 Compiled old drill data to identify potential targets
 16 targets identified over a strike length of
1 – San Nicolas Bulk Minable
1a- Villalpando Gap 15,700m
2 – Villalpando-Cebolletas
3 – Cabrestantes
4 – Villalpando –Salto  Extensions of known productive veins and new
5 – Villalpando -Capulin
6 – La Loca Northwest veins that show major alteration features
7 –Loca Angigua
8 – Mesa Los Galgos  Visible evidence of mineralization at surface
quartz veins, clay alteration, pyrite
 Favorable host rocks at depth in the ore horizon –
La Bufa & Guanajuato conglomerate
 Anomalous geochemical values for Au (>20 ppb)
and Ag (>0.1 ppm) at surface
 Completed detailed geological mapping
9 – El Cubo Fault South
10 – Dolores Vein South
 Launched a 2-year, 40,000m drill program in mid-
11 – Puertocito
12 – La Reyna
2009; 6,200m targeted for 2009.
13 – Las Torres Bulk Mineable
14 – El Cubo North
 Completed 364 metres in 2 holes (Aug 31/09)
15 – Almacen
16 – Fenix Bulk Mineable
 Initial drilling focused on Dolores, San Alberto, La
Loca and Fenix
 Drill sites for Cabresantes and Deep Veta Madre
areas

14

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El Cubo - Villalpando Vein Targets

15

Guadalupe y Calvo
 66,883 Ha gold-silver exploration project
 New claims staked to the northwest
 Drainage geochem and fieldwork identified
Gammon Property
200m wide anomalous mineralization in NW (San Luis NW
portion of San Luis claim Portion)

New
New Claim Area
Stockwork
zone 200 m
wide

NW Portion Potential
Mineralization area

16

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MUESTREO EN ESQ NW LOTE SAN LUIS

muestra Au Ag Au eq Width_m
GRO-131 0.02 1 0.03 2.0

GyC Sampling Results GRO-132

GRO-133
GRO-134
0.02
0.02
0.02
0
0
0
0.02
0.02
0.02
2.0
2.0
2.0
GRO-135 14.50 100 16.32 2.0
GRO-136 0.02 1 0.03 2.0
GRO-137 0.21 3 0.26 2.0
GRO-138 0.85 5 0.94 2.0
GRO-139 0.09 1 0.11 2.0
GRO-140 0.02 0 0.02 2.0
GRO-141 0.02 0 0.02 2.0
GRO-142 1.12 2 1.16 2.0
GRO-143 0.41 2 0.44 2.0
GRO-144 0.26 2 0.29 2.0
GRO-145 0.02 1 0.03 2.0
GRO-146 0.01 1 0.02 2.0
GRO-147 0.02 1 0.04 2.0
GRO-148 0.17 2 0.21 2.0
GRO-149 0.09 1 0.11 2.0
GRO-150 0.10 3 0.15 2.0
GRO-151 0.02 0 0.02 2.0
GRO-152 0.12 1 0.15 2.0
GRO-153 0.02 1 0.04 2.0
GRO-154 0.11 3 0.15 2.0
GRO-155 0.03 1 0.04 2.0
GRO-156 0.07 1 0.09 2.0
GRO-157 0.12 5 0.21 2.0
GRO-158 0.05 2 0.09 2.0
GRO-159 0.04 1 0.06 2.0
GRO-160 0.09 1 0.11 2.0
GRO-161 0.08 2 0.12 2.0
GRO-162 0.17 6 0.27 2.0
GRO-163 0.08 4 0.15 2.0
GRO-164 0.16 4 0.23 2.0
GRO-165 0.30 30 0.84 2.0
GRO-166 0.31 5 0.40 2.0
GRO-167 0.09 1 0.12 2.0 17

Strong Cash Management

Capital Programs Fully Funded
6-Quarters - Q1 2008 to Q2 2009
140,000
7,726 101,963
120,000 23,800

100,000 88,679
(USD 000's)

80,000

60,000

40,000
21,951
20,000
3,709
-
Opening Cash OCF Option Proceeds Lease/Debt Capex/Exploration Closing Cash

 $100M in capital expenditures over 6 quarters has been internally funded

 Capital investment programs have positioned Ocampo for significant growth
 Majority of capital programs have been completed
 Reduced Capex requirements in 2010 and beyond
 Phase 3 heap leach expansion deferred until 2011
 Net debt free by year end
 Have not diluted shareholders with equity issue
 Cash Position of $22M (Q2 2009)
18

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Long Term Objectives

Grow margins and cash flows: Gold & Gold Eq. Production & Cash Costs
 Production rising, costs declining
450,000
$800
400,000
 Increasing cash margins 350,000
$700

$600
 Growth in cash flow per share 300,000

Annual Production
$500
250,000
Business Case for Gammon 200,000 $400

 Low geopolitical risks – NAFTA 150,000 $300

 No gold hedging 100,000 $200

50,000 $100
 No base metal byproduct credits - $-
 Leveraged to gold price & more significantly to silver 2007 2008 2009 2010 2011
Aue (55:1) Au $/Aue oz $/Au oz
2010 Forecast (Au/Ag 55:1)
Operating Margins Expanding
 355-385k Aue oz @$315-$350/Aue oz $1,000 $900 $900 $900
$864
 200-220k Au oz @ $45-$111/Au oz (Ag credit) $900
$800 $699
 8.5-9.3M Ag oz @ $(6.61)-($5.40) Ag/oz (Au credit) $700
$600 $550 $560
 Margins continuing to increase over 2007

US$/oz
$470
$500
$341
Growth $400
$300
 Current 3 year guidance from operations only $200
$100 $29
 Development of advanced exploration assets $-

 Deliver disciplined growth 2007 2008 2009 2010 2011

Margin/ Aue oz (55:1) Gold Price

19

Appendix

20

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Ocampo Mine Overview

Ocampo – The flagship asset
10
Operating Strip Ratio
 100% interest in the Ocampo Au/Ag project,
located in the state of Chihuahua, Mexico 8

Operating Strip Ratio

Overview
 Comprises 61 exploitation concessions
covering 12,504 hectares 6

4
 Open pit and underground operation
 Open pit - operating at 100,000 tpd (ore & 2
Operations waste) (MTD as of Sept 8/09)
 Underground- operating at 800 tpd (MTD as 0
of Sept 8/09) Q4-07 Q1-08 Q2-08 Q3-08 Q4-08 2009E 2010E 2011E
 expanding to 1,500tpd in Q1 2010 Operating Strip Ratio
 Mill capacity expanded to 3,300-3,400 tpd
currently commissioning in Q309 Ocampo Mill Expansion 3,239TPD as
3,500 of Sept 8/09
Production  Production growth
 Cost savings 3,000 Phase III commissioned Q3/09
 Declining cash costs, increasing EBITDA Capacity: 3,300 to 3,400 tpd
 Picacho in production by Q4/09 2,500

 123,000 metre drilling program 2,000

Near-term  81.5 km drilled by Aug /09
Upside
 Full access to lower cost 20MW grid power 1,500
 Other cost saving opportunities
1,000
21

Ocampo Mine Developments

Improvement Initiatives Attributable Reserves and Resources
 Independent Open Pit Phasing Study Tonnes Au Grade Ag Grade Contained Au Contained Ag
000's g/t g/t 000's oz 000's oz
 As a result of the phasing study:
Open Pit Proven 29,766 0.82 36 788 34,656
 strip ratio has been reduced to <3:1 Probable 26,892 0.66 25 568 21,929
Optimization
 identified additional high-grade open pit P&P 56,658 0.74 31 1,356 56,585
material to feed to mill Measured 12,568 0.27 13 109 5,120
 Phase I expansion commissioned in Nov/08 Indicated 15,586 0.25 9 127 4,494
 capacity increased to 2,400-2,600 tpd M&I 28,154 0.26 11 236 9,614

 Phase II expansion commissioned in March Inferred 33,307 1.26 56 1,349 60,443

 capacity increased to 2,800-3,000 tpd Total * 118,119 0.77 33 2,941 126,642
 Phase III expansion commissioning in Q3/09 * Not NI 43-101 compliant
Processing  Capacity increased to 3,300 to 3,400 tpd  Reserve/resource update
Expansion  Heap Leach upgraded to conveyor stacking  Drilling/underground work aimed at upgrading the
 Engineering identified additional 10MT substantial inferred resource to p&p and adding
stacking capacity at heap leach. resources
 Defers phase 3 heap leach expansion to
2011
 Resumption of 10-12,000 tpd stacking rate
 Optimizing reagent and cyanide consumption
Cost
Reduction  Connected to grid to provide 100% of power
Program requirement (July 15, 2009)
 Other Cost reduction initiatives well
underway
22

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Ocampo Underground Mine

Production Status

23

Ocampo Underground Production Status

The current status in underground mine production and is divided into five
stages:

 Stopes drilled but not blasted

 Stopes that are currently drilling
 Stopes available to drill
 Stopes in preparation
 Stopes requiring development

24

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Ocampo Stopes Drilled But Not Blasted

GRADE
STOPE ELEV. TON. WIDTH
AU AG EQ
JESÚS
MARÍA 1655 3,881 1.6 2.83 146 4.91
B-146

25

Ocampo Stopes Drilled But Not Blasted

GRADE
STOPE ELEV. TON. WIDTH
AU AG EQ

SAN JUAN
1520 - 1536 8,000 1.2 3.9 225 7.11
B-105

26

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Ocampo Stopes Drilled But Not Blasted

GRADE
STOPE ELEV. TON. WIDTH
AU AG EQ
AVENTURERO
1611 5,000 1.7 3.1 152 5.27
B-2

27

Ocampo Summary
Stopes Drilled But Not Blasted
GRADE
TON. WIDTH
AU AG EQ
TOTAL 16,881 1.5 3.27 174 5.76

28

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Ocampo Stopes Currently Drilling

GRADE
STOPE ELEV. TON. WIDTH
AU AG EQ
SAN JUAN
1500-1520 6,775 1.20 3.90 225 7.11
B-105

29

Ocampo Stopes Currently Drilling

GRADE
STOPE ELEV. TON. WIDTH
AU AG EQ
SAN JUAN
1520-1536 15,207 1.20 3.70 310 8.13
B-105

30

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Ocampo Stopes Currently Drilling

GRADE
STOPE ELEV. TON. WIDTH
AU AG EQ
SAN JOSÉ
1500 – 1520 1,980 1.40 3.06 270 6.92
B-105
SAN JOSÉ
1520 – 1536 2,094 1.40 3.06 270 6.92
B-105

31

Ocampo Stopes Currently Drilling

GRADE
STOPE ELEV. TON. WIDTH
AU AG EQ
JESÚS MARÍA
1620 12,255 1.50 2.83 146 5.14
B-146

32

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Ocampo Summary
Currently Drilling Stopes
GRADE
TON. WIDTH
AU AG EQ

TOTAL 38,311 1.34 3.31 244 6.84

33

Ocampo Stopes Available to Drill

GRADE
STOPE ELEV. TON. WIDTH
AU AG EQ
AVENTURERO
1467 - 1486 1,593 1.20 2.51 98 3.91
B-603
AVENTURERO
1486 - 1500 1,904 1.20 2.51 98 3.91
B-603
AVENTURERO
1500 - 1520 5,600 1.20 2.51 98 3.91
B-603

34

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Ocampo Stopes Available to Drill

GRADE
STOPE ELEV. TON. WIDTH
AU AG EQ
AVENTURERO
1680 - 1712 12,250 1.7 3.1 152 5.27
B-21

35

Ocampo Summary
Stopes Available to Drill
GRADE
TON. WIDTH
AU AG EQ
TOTAL 31,347 1.32 2.65 111.5 4.25

36

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Ocampo Stopes in Preparation

GRADE
STOPE ELEV. TON. WIDTH
AU AG EQ
SAN JUAN 1586 - 1547 10,000 1.4 2.8 225 6.01
SAN JOSÉ 1586 - 1547 11,700 1.5 3.01 320 7.58

37

Ocampo Stopes in Preparation

GRADE
STOPE ELEV. TON. WIDTH
AU AG EQ
SAN JOSÉ
1611 4,200 1.6 2.92 193 5.68
B-24.5

38

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Ocampo Stopes in Preparation

GRADE
STOPE ELEV. TON. WIDTH
AU AG EQ
LA MORE B-114 1640 - 1755 9,948 1.2 4.08 294 8.28

39

Ocampo Stopes in Preparation

GRADE
STOPE ELEV. TON. WIDTH
AU AG EQ
AVENTURERO
1656 5,500 1.3 3.1 152 5.27
B-118

40

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Ocampo Stopes in Preparation

GRADE
STOPE ELEV. TON. WIDTH
AU AG EQ
SAN JOSÉ B-9 1675 5,000 1.8 1.9 128 3.73

41

Ocampo Stopes in Preparation

GRADE
STOPE ELEV. TON. WIDTH
AU AG EQ
LA ESPERANZA 1689 - 1712 10,000 1.1 4.43 197 7.17

42

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Ocampo Summary
Stopes in Preparation
GRADE
TON. WIDTH
AU AG EQ
TOTAL 56,348 1.41 3.18 215 6.25

43

Ocampo Stope Areas Requiring Further

Development
GRADE
STOPE ELEV. TON.
AU AG EQ
MARIA NE 1611 9,316 3.28 195 5.72
MARIA SW 1611 11,070 3.28 203 5.82
MARIA SW 1675 5,773 5.76 267 9.1

MARIA NE y SW in the level 1611

planned to stop, will finish
exploration; planned on stand by,
until early 2010.
MARIA SW 1675, is planned as a
shrink stope. Mid-September start
the preparation; October, planned
90 meters of stope prep advance per
month.
Total 248m development required

44

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Ocampo Stope Areas Requiring Further

Development
GRADE
STOPE ELEV. TON.
AU AG EQ
SAN AMADO B-133 1640 3,484 3.24 168 5.49
ALEHIRA B-134 1640 4,749 3.1 173 5.4
ROSARIO B-140 1640 11,025 3.87 165 6.07

 San Amado, Alehira y

Rosario will be minined
using cut and fill.
 Area requires rehabilitation,
planned mid-September.
 October start the
development of the main
access, at a rate of 90 meters
per month
 Total 200m development
required

45

Ocampo Stope Areas Requiring Further

Development
GRADE
STOPE ELEV. TON.
AU AG EQ
SAN FERNANDO B-133 1611 9,560 5.75 413 11.25

 Access Ramp in preparation for

LH stope.
 In early September start
rehabilitation(draining the site ,
rehabilitation, and mine an
orepass)
 October mining ramp at a rate of
90 meters per month.
 Access to 1547 level.
 Total 120m development
required

46

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Ocampo Summary
Stope Areas Requiring Further Development
GRADE
TON.
AU AG EQ

TOTAL 54,977 4.04 226 7

47

Ocampo Stope Grade Summary

The Tonnage was not taken from official reserves

48

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Ocampo 2009 Exploration

49

Ocampo 2009 Exploration Completed

 Completed 1 : 5000 District Geology

 Completed District Drainage Geochem
 Completed > 3,500-sample rock-chip geochem
 Defined 14 new drill targets with over 5km total strike
 Discovered major drainage geochem anomaly in NW
 Drilled 7504m Q1 - Q2 on new discovery drilling at Altagracia, Picacho SE, Las
Molinas, Belen
 Discovered highly anomalous mineralization Altagracia, Las Molinas

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Ocampo Present Litho-Geochem

Exploration
Work In Progress Cerro
Colorado

Target Areas
La Olvidada-Rosita
Santa Librada (potential parallel
area to the PGR trend)

Cerro Colorado (evidence to High

Sulfidation target)
OP Area

La Olvidada - Rosita (potential

extension of UG veins)

Santa Librada

51

Ocampo Santa Librada Geochem Sampling

Santa Librada
 Multi Element anomaly in rock-chip
surface samples
 700m-long anomaly assoc. with
shearing & qtz-pyrite veining within
adularized rhyolite

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 9/10/2009

Ocampo Las Molinas Target

Las Molinas Target

 North of Ocampo Mill

 Series of veins in
triangular intersection

 Exploration target is
>300m long and 20 to 40m
wide
 Comleted 14 holes for
2,731mts to Aug 1/2009

Russell Tremayne, Rene Marion, & Ramon Luna show outcrop of

a 1.2m vein that carries 118.93 gpt Au + 975.7 gpt Ag 53

Ocampo Las Molinas Geology Map

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 9/10/2009

Ocampo Molinas Drill Sections

12m .26AuEq55

55

Ocampo Molinas Drill Sections

5m 1.76AuEq55
13m 1.16AuEq55

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 9/10/2009

Ocampo Molinas Drill Sections

12m 1.0AuEq55

65m 1.8AuEq55

57

Ocampo Molinas Drill Sections

11 m 2.7AuEq55

8 m 1.64AuEq55

9 m 1.2AuEq55

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 9/10/2009

Ocampo Molinas Drill Sections

3m 1.5AuEq55

59

Ocampo Altagracia-Picacho Drill Target

60

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 9/10/2009

Ocampo Altagracia-Picacho
Geological Section

61

Ocampo Altagracia-Picacho
Geological Section

62

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 9/10/2009

Ocampo Altagracia-Picacho
Geological Section

63

Ocampo San Amado Drill Target

64

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 9/10/2009

Ocampo San Amado Cross Section

2005 drilling
1.0m; 14.0 gpt AuEq55

2008 drilling
2.3 m; 98 gpt AuEq55

65

Ocampo San Amado Cross Section

Results Pending

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 9/10/2009

Ocampo San Amado Long Section

OCAMPO BEX EXPLORATION

RESULTS 2005 - 2008
Hole True_W AuEq(55)
OG-178 1.0 14

OU-426 2.3 98.03

OU-428 6.0 56.60

+100m
New Today OG-758
0.9m 5.50 Au, 249 Ag

+300m

67

Ocampo Exploration Summary

 District Geology completed and indicates UG potential to NE, E, SE

 Las Molinas discovery appears to have potential for small OP, being modeled now
 Altagracia discovery has discontinuous, locally high-grade mineralization- being
worked up in detail
 San Amado drilling began in July, first result positive
 Large unexplained stream-sediment in Co. Colorado zone

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Remaining 2009 Ocampo Exploration

 Complete San Amado initial discovery drilling
 Complete detailed mapping Altagracia & mineralization model in 3D
 Integrate surface mapping with UG vein geology from Mine Geology
Department
 Drill Sta. Librada Q4
 Remaining new targets to be drilled 2010
 Map district alteration systematically

69

El Cubo Mine Overview

Project Overview
 Gammon holds a 100% interest in the El Cubo mine
in Guanajuato, Mexico
Overview
 Located about 275 km north-west of Mexico City
 58 concessions covering 14,087 hectares
 Underground mine with both shaft and decline
Operations  Operated with Las Torres mill (2,200 tpd)
 2008 and 2007 production exceeded 60k oz Au Eq
 Guanajuato District consists of three, multi-vein
systems trending north-west
Geology  Only 40 veins included in the reserve/resource
model - Vein width averages about 1.9 m
 Gravity circuit increased recoveries to 90%
 Cost cutting measures in place include:
Recent
Developments  Dedicated haulage level and single shaft to mill
 Restructuring of work force ongoing
Attributable Reserves and Resources
Tonnes (000’s) Au Grade (g/t) Ag Grade (g/t) Cont. Au (000’s oz) Cont. Ag (000’s oz)
Proven 1,453 3.22 188 151 8,801
Probable 1,780 3.29 158 188 9,036
P&P 3,233 3.26 172 339 17,837
Measured 160 2.38 94 12 484
Indicated 2,315 2.71 53 202 3,967
M&I 2,475 2.69 56 214 4,451
Inferred 2,781 4.79 215 428 19,231
Total * 8,489 3.59 152 981 41,519
* Not NI 43-101 compliant
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 9/10/2009

El Cubo 2009 Exploration

71

El Cubo Sierra Vein System

Schematic Cross-Section
 Veins most productive in
Guanajuato Conglomerate & Bufa 2500 m
Rhyolite

 Calderones Fm not favorable due

to poorly lithified character
2300 m
 Deposits in Mesozoic Basement
tend to have difficult wallrock
conditions

 Best remaining exploration targets

are weak showings in Calderones 2100 m
or Cedros Formations with
objective in Bufa / Guanajuato
Formations

1900 m

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 9/10/2009

El Cubo Exploration
Targets
Targets Strike
Total Targets: 15,700m
1 – San Nicolas Bulk Minable 1500m
1a- Villalpando Gap 1400m 1a
2 – Villalpando-Cebolletas 1400m
3 – Cabrestantes 1200m
4 – Villalpando –Salto 1500m
5 – Villalpando -Capulin 500m
6 – La Loca Northwest 200m
7 –Loca Angigua 200m
8 – Mesa Los Galgos 1200m
9 – El Cubo Fault South 2200m
10 – Dolores Vein South 800m
11 – Puertocito 1000m
12 – La Reyna 1000m
13 – Las Torres Bulk Mineable 500m
14 – El Cubo North 200m
15 – Almacen 400m
16 – Fenix bulk Mineable 500m

73

El Cubo Looking South Along the

Villalpando South Targets
Salto
Mesa Galgos
Cebolletas

Surface Trace
Villalpando Vein

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 9/10/2009

El Cubo Villalpando Vein

Longitudinal Projection of the Hanging Wall Geology
Minimal ore in Calderones
Small orebodies in Bufa
Exploration Targets
Major orebodies in Guanajuato Conglomerate

Guanajuato Congl

Basement Rocks

Los Cedros Fm

Calderones Fm
500 m
La Bufa Rhyolite

75

El Cubo Cebolletas Target Long Section

4.0m
3.1 Au + 27 Ag

4.0m
7.7 Au + 78 Ag

0.5m
4.1 Au + 430 Ag

0.7m
6.1 Au + 88 Ag

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El Cubo Villalpando Capulin

Longitudinal Projection Hanging Wall Geology

 Presently
driving decline
drift for drill
access 2010

Target

Target

77

El Cubo
Loca Antigua & La Loca NW Targets
 Loca Antigua is old section of mine – few records
 Drifting & drilling gap between Loca NW and Loca Antigua
 Drill deeper into La Bufa in 2010

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El Cubo S Fault Target

Longitudinal Section
 Along claim Boundary
 5 Ore-grade intercepts out of 28 DDH
 5 km long structure parallel to Veta Madre
 Open at Depth – Most of favorable Bufa & Guanajuato Congl not tested

2m; 0.9Au
– 420Ag

0.7m;
0.46Au
– 195Ag

2m;
3.87Au –
1m; 1m;
884Ag
0.40Au 1.75Au
– 196Ag – 593Ag
OPEN

79

El Cubo Veta Madre

Longitudinal Projection Hanging Wall Geology

Ore bodies along the Veta Madre tend to bottom at the base of the Bufa Rhyolite
and other, deeper deposits, top out near the top of the Guanajuato Conglomerate.
The Las Torres Deep Target is located within Guanajuato Conglomerate beneath
mined out ore bodies in the Bufa Rhyolite

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El Cubo Las Torres Target

Past mining stopped in

Small, narrow deposits
Loseros Fm which is soft and
does not form good veins
Bulk mineable Ag > Au 50 to
200 meters below bottom of
Calderones Fm Guanajuato Shaft in
Bufa
Guanajuato Conglomerate
below the Loseros Fm
Bulk Mineable Deposits
Loseros Fm.

Las Torres Target

Guanajuato Conglomerate

81

El Cubo Las Torres Target

Cross Section

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 9/10/2009

El Cubo Fenix – Bulk Mineable Target

 Past drilling showed

encouraging
intercepts
 Planned for infill
drilling late 2009

52m @ 0.78 AuEq

83

El Cubo 2009 Exploration Summary

 El Cubo Mine Production – 80 million ounces of Silver and 2 million ounces gold
 Area of District – 14 square km
 Area of Mining – 7 square km
 Area of Unexplored targets within the District – 7 square km
 Types of Targets – veins and bulk mineable veined zones
 Target Potential - + million ounces of AuEq equivalent
 Historic annual exploration - 3,000 to 10,000 meters of drilling development -
2,000 – 5,000 meters
 40,000m drill program recommended for 2009 – 2010 to test all targets

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Guadalupe y Calvo Overview

Project Overview Intercept Highlights
 100% interest in 66,883 Ha Guadalupe gold-silver
Hole# From (m) To (m) Length (m) Au (g/t) Ag (g/t) Aue (55)
exploration project GC-138 106.0 110.0 4.0 1.31
0.49 44
Overview  Located about 300 km NW of Chihuahua GC-139 167.0 174.0 7.0 0.54 12 0.76
 past production exceeds 2 mm oz Au and 28 mm GC-140 88.0 98.0 10.0 1.75 70 3.06
GC-142 230.1 236.0 5.9 2.83 203 6.64
Ag at historic grades of 37 g/t Au / 870 g/t Ag GC-142 263.0 267.0 4.0 0.73 73 2.09
 36,000+ hectares claim registered located to the GC-143 221.0 234.0 13.0 0.83 78 2.29
GC-144 251.0 261.0 10.0 3.27
northwest of the Guadalupe y Calvo San Luis claim 0.94 125
GC-145 240.0 246.0 6.0 1.07 69 2.35
 Inferred resource of over 2 mm oz Au Eq GC-147 52.5 61.5 9.0 1.67 88 3.32
Geology  Epithermal low sulphidation deposit GC-147 260.0 271.0 11.0 0.79 59 1.90
GC-148 14.4 18.4 4.0 5.30 131 7.76
 Vein widths have been observed up to 40 m GC-148 222.0 230.8 8.8 0.36 10 0.54
 Drill results support the potential for both open GC-150 122.0 126.0 4.0 2.69 209 6.60
GC-151 86.6 88.0 1.5 23.44 1105 44.17
pit and underground operations GC-151 198.0 205.0 7.0 0.29 19 0.65
 Scoping study / pre-feas to resume in 2010 GC-153 218.5 229.0 10.5 0.37 19 0.72
Future  Metallurgical testing in progress GC-154 11.0 20.0 9.0 2.69 82 4.23
Developments  Deposit has simple geometry - easy to develop GC-155 68.9 79.0 10.2 0.54 37 1.24
GC-156 32.0 40.0 8.0 0.32 22 0.73
 Brownfields target generation program initiated GC-156 172.5 186.0 13.5 0.75 30 1.30
 Potential to be significant production contributor GC-159 16.0 25.0 9.0 5.48 313 11.34
GC-160 24.5 42.0 17.5 1.08 86 2.70
Existing Resource GC-160 198.0 220.0 22.0 0.51 19 0.87
Tonnes Au Grade Ag Grade Contained Au Contained Ag GC-161 9.0 21.0 12.0 1.01 70 2.32
000's g/t g/t 000's oz 000's oz GC-162 256.0 264.4 8.4 0.28 15 0.56
GC-165 9.0 13.0 4.0 2.42 98 4.25
Rosario 11,400 2.64 117 959 42,300
GC-165 169.0 174.0 5.0 0.35 25 0.82
Nankin 400 9.25 260 118 3,300
Total Inferred 11,800 2.84 120 1,077 45,600
85

Guadalupe y Calvo 2009 Exploration

86

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 9/10/2009

GyC District Land

Map
New Gammon
Acquisition

Gammon Property
(Guadalupe)

Gammon Property
(San Luis)

87

GyC District Geology Map

NW Portion Potential
Mineralization area

Rosario Area

No symbol = Post
Gammon Property
Mineral Tuffs (San Luis)

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 9/10/2009

GyC Potential Ore Trend

Gammon Property
(San Luis)

89

GyC San Luis NW Portion

Gammon Property (San

Luis NW Portion)

New Stockwork zone

200 m wide

90

45