Shareholder Alert: Levi & Korsinsky, LLP Launches an Investigation into the Board of Capital Gold Corporation

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					Shareholder Alert: Levi & Korsinsky, LLP Launches an Investigation into
the Board of Capital Gold Corporation

Levi & Korsinsky is investigating the Board of Directors of Capital Gold
Corporation for possible breaches of fiduciary duty and other violations
of state law in connection with their attempt to sell the Company to
Gammon Gold, Inc.

New York, NY, October 06, 2010 -- Levi & Korsinsky is investigating the
Board of Directors of Capital Gold Corporation (“Capital Gold” or the
“Company”) (AMEX: CGC) for possible breaches of fiduciary duty and other
violations of state law in connection with their attempt to sell the
Company to Gammon Gold, Inc. (“Gammon Gold”) (NYSE: GRS). Under the terms
of the transaction, each common share of Capital Gold will be exchanged
for 0.5209 common shares of Gammon Gold and a cash payment in the amount
of $0.79 per share. The total consideration for the purchase of 100% of
the fully diluted in-the-money shares of Capital Gold is approximately
$288 million or $4.57 per Capital Gold share based on Gammon Gold’s
closing price on September 24, 2010. Click here to learn how to join the
action: http://www.zlk.com/capitalgold-cgc.html, or call: 877-363-5972.

The investigation concerns whether the Capital Gold Board of Directors
breached their fiduciary duties to Capital Gold stockholders by failing
to adequately shop the Company before entering into this transaction and
whether Gammon Gold is underpaying for Capital Gold shares, thus
unlawfully harming Capital Gold stockholders. In particular, at least one
analyst set a price target for Capital Gold stock at $8.74 per share.

If you own common stock in Capital Gold and wish to obtain additional
information, please contact Joseph E. Levi, Esq. either via email at
jlevi@zlk.com or by telephone at (212) 363-7500, toll-free: (877) 363-
5972, or visit http://www.zlk.com/capitalgold-cgc.html.

Levi & Korsinsky has expertise in prosecuting investor securities
litigation and extensive experience in actions involving financial fraud
and represents investors throughout the nation, concentrating its
practice in securities and shareholder litigation. The attorneys at Levi
& Korsinsky have been appointed by numerous courts throughout the country
to serve as lead counsel on behalf of shareholders in major litigations
involving mergers and acquisitions. For more information, please feel
free to contact any of the attorneys listed below.

Contact: Levi & Korsinsky, LLP, Joseph Levi, Esq. Eduard Korsinsky, Esq.
30 Broad Street - 15th Floor, New York, NY 10004, Tel: (212) 363-7500,
Toll Free: (877) 363-5972, Fax: (212) 363-7171, www.zlk.com

Press Contact:
Jared Morine
Levi & Korsinsky, LLP
30 Broad Street, 15th Floor
New York, NY 10004
212-363-7500
jmorine@zlk.com
http://www.zlk.com

				
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Description: Levi & Korsinsky is investigating the Board of Directors of Capital Gold Corporation for possible breaches of fiduciary duty and other violations of state law in connection with their attempt to sell the Company to Gammon Gold, Inc.