:: Gammon Lake to Expand Heap Leach Crushing Facility

Gammon Lake Resources Inc. is pleased to announce the expansion of the Open-Pit crusher and heap leach facility at the Company's Ocampo gold-silver project located in Chihuahua, Mexico. The Company has requested Kappes Cassiday and Associates ("KCA") to engineer and construct the expansion of the Open-Pit crushing facility at Ocampo.

"Since commencement of Open-Pit operations on January 3, 2006 the Company continues to outperform the Feasibility Study projected mining levels and overwhelm the crushing facilities. Over the past 8 months the Company has evaluated operations and sees the opportunity to increase gold and silver production by expanding the crusher capacity. The Company feels it will be more cost effective to commence the expansion before the mill construction workers involved leave site. This expansion will increase the Company's production profile", stated Brad Langille, CEO. "We are capitalizing on the opportunity created by a larger reserve and lower strip ratio."

KCA is completing the final engineering of the addition of one more cone crusher which will add in excess of 1,500 tonnes per day crushing capacity at the Ocampo heap leach. This additional cone crusher has now been procured and is currently on site at Ocampo. The total cost of the expansion is approximately US$2.5 million. The Company is completing detailed engineering leading to construction. The addition of this cone crusher should increase the Company's targeted production for 2007 to 480,000 gold equivalent ounces from both the Ocampo and El Cubo projects (285,066 gold ounces and 12,565,359 silver ounces), based on the tonnage, grade and recovery rates estimated in the Company's Feasibility Study for the Ocampo project. The Company expects the heap leach crusher expansion project to be completed by February 2007.

KCA has completed testing of all components of the Ocampo mill through the grinding circuit all the way to producing a dry stacked tail. Over the next several days the Company expects to produce a gold and silver rich solution for processing at their mill facility Merrill Crowe Plant. The precipitation will then be poured into gold-silver bars. Mill production will proceed through a ramp up as the Company prepares for full commercial production before year end.