The Law Office of Robbins Umeda LLP Announces an Investigation of the Acquisition of Capital Gold Corp. by Gammon Gold Inc.

Robbins Umeda LLP has commenced an investigation into possible breaches of fiduciary duty and other violations of state law by members of the Board of Directors ('Board') of Capital Gold Corp. ('Capital Gold' or the 'Company') (NYSE AMEX: CGC) in connection with their efforts to sell Capital Gold to Gammon Gold Inc. ('Gammon Gold') (NYSE: GRS). If the transaction is completed, Capital Gold shareholders will receive a payment of $0.79 in cash and 0.5209 shares of Gammon Gold common stock for each share of Capital Gold common stock they hold, for an implied value of $4.57 per share. The transaction is expected to close in late 2010.

Robbins Umeda LLP's investigation concerns whether Capital Gold's Board undertook a fair process to obtain fair consideration for all shareholders of Capital Gold. Specifically, our investigation concerns whether the Company's Board breached their fiduciary duties to Capital Gold shareholders by failing to adequately shop the Company before entering into the transaction with Gammon Gold. Notably, at least one analyst set a target price for the Company of approximately $9 per share. Furthermore, the Company's net revenues for the third quarter of 2010 increased 41.1% from the same period last year, to $17.53 million.

If you are a shareholder of Capital Gold, plan to continue to hold your shares, and would like more information about your rights as a shareholder, please contact attorney Gregory E. Del Gaizo at 800-350-6003 or by e-mail at info@robbinsumeda.com.

Robbins Umeda LLP is a securities litigation law firm with significant experience representing investors in merger-related shareholder class actions, shareholder derivative actions, and securities fraud class actions. For more information about the firm, please go to http://www.robbinsumeda.com.


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Robbins Umeda LLP
Gregory E. Del Gaizo, 800-350-6003
info@robbinsumeda.com