Capital Gold Announces Amendment to Merger Agreement With Gammon Gold

Capital Gold Corporation CGC announced that, on March 17, 2011, it entered into an amendment to its merger agreement with Gammon Gold Inc. GRS, which increases the cash component of the merger consideration payable to CGC's stockholders by $0.30, from $0.79 to $1.09.

Also on March 18, 2011, Capital Gold convened a Special Meeting of Stockholders. Based on preliminary information from its proxy solicitor, at the Special Meeting, the stockholders of Capital Gold adjourned the Special Meeting until April 1, 2011, in order to give CGC's stockholders additional time to consider the increased consideration and to review a supplement to the definitive proxy statement/prospectus to be filed with the Securities and Exchange Commission. The Company expects to file the supplemental proxy materials on or about March 21, 2011. The adjournment preserves the February 14, 2011 record date for the determination of stockholders entitled to receive notice of and to vote at the Special Meeting.