Gammon Gold Acquires Capital Gold

On April 8, 2011, Gammon Gold Inc. acquired all of the issued and outstanding common shares of Capital Gold Corporation in a cash and share transaction valued at approximately US$420 million.

The transaction was completed by way of a shareholder approved merger in which Capital Gold received 0.5209 of a Gammon share plus $1.09 for each Capital share. Gammon's friendly transaction defeated an unsolicited offer made by Timmins Gold.

Fasken Martineau DuMoulin LLP was Canadian legal counsel to Gammon Gold in this transaction with a team that included Gregory Ho Yuen, John Turner, Aaron Atkinson, Bozidar Crnatovic, Ron Nobrega, Mitchell Thaw, Martin Fisher-Haydis, Susan Newell and Andrew Teehan. Kirkland & Ellis LLP was US counsel to Gammon Gold with a team that included Jeffrey Symons and Jason Zachary.

Macleod Dixon LLP was Canadian counsel to Capital Gold with a team that included Richard Lachcik, Morris Popowich and Robert Eberschlag. Ellenoff Grossman & Schole LLP was US counsel with a team that included Barry Grossman and Sarah Williams. Justin Klein of Ballard Spahr LLP acted as counsel to the M&A Committee of the board of directors of Capital Gold.

Lawyer(s)

Ronald E. Nobrega Bozidar Crnatovic Mitchell L. Thaw Robert W. Eberschlag Richard J. Lachcik Susan M. Newell E. Martin Fisher-Haydis John S.M. Turner Aaron Atkinson Morris Popowich Andrew Teehan

Firm(s)

Fasken Martineau DuMoulin LLP Kirkland & Ellis LLP Norton Rose Fulbright Canada LLP Ballard Spahr Andrews & Ingersoll, LLP