Exhibit 99.4

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|KPMG LLP
    Chartered Accountants                                                              |                                                                    
|----------------------------------------------------------------------------------------------- | -------------------------------------------------------------------
|Suite 1500 Purdys Wharf Tower I
    1959 Upper Water Street
    Halifax NS  B3J 3N2
    Canada | Telephone (902) 492-6000
    Telefax (902) 492-1307
    www.kpmg.ca

AUDITORS REPORT ON RECONCILIATION TO UNITED STATES GAAP

To the Board of Directors and Shareholders of Gammon Gold Inc.

On March 24, 2009, except as to note 22(i) which is as of
March 31, 2009 and note 2 which is as of August 12, 2009, we reported on the
consolidated balance sheets of Gammon Gold Inc. ("the Company") as at December
31, 2008 and 2007 and the consolidated statements of operations and
comprehensive income (loss), cash flows and shareholders equity for each of the
years in the two year period ended December 31, 2008, which are included in the
annual report on Form 40-F/A. In connection with our audits of the
aforementioned consolidated financial statements, we also have audited the
related supplemental note entitled "Reconciliation to United States Generally
Accepted Accounting Principles" included in the Form 40-F/A. This supplemental
note is the responsibility of the Companys management. Our responsibility is to
express an opinion on this supplemental note based on our audits. In our
opinion, such supplemental note, when considered in relation to the basic
consolidated financial statements taken as a whole, presents fairly, in all
material respects, the information set forth therein.

As discussed in note 2 to the consolidated financial statements, the December
31, 2008 consolidated financial statements have been restated.

/s/ KPMG LLP

Chartered Accountants 
Halifax, Canada

March 24, 2009, except as to the following notes to the consolidated
financial statements: note 22(i), which is as of March 31, 2009 and note 2,
which is as of August 12, 2009

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Restated Reconciliation with United States Generally
Accepted Accounting Principles(in thousands of United States Dollars except per
share data) 
December 31, 2008

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The following represents additional information to the restated
consolidated financial statements of Gammon Gold Inc. (the Company) that were
prepared in accordance with accounting principles generally accepted in Canada
(Canadian GAAP). Details of the restatement are provided in note 2 to the
December 31, 2008 restated consolidated financial statements. Set out below are
the material adjustments to net earnings / (loss) for the years ending December
31, 2008 and 2007, and to shareholders equity at December 31, 2008, and
December 31, 2007 in order to conform to accounting principles generally
accepted in the United States of America (US GAAP).

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Consolidated Statements of Operations and Comprehensive
Income / (Loss):

|                                                                                                |   | Year ended          |   |   | Year ended        |  
|----------------------------------------------------------------------------------------------- | - | ------------------- | - | - | ----------------- | -
|                                                                                                |   | December 31, 2008   |   |   | December 31, 2007 |  
|                                                                                                |   | (as
      restated) |   |   |                   |  
|                                                                                                |   |                     |   |   |                   |  
|Net earnings / (loss) based on Canadian GAAP                                                    | $ | 39,994              |   | $ | (101,314          | )
|Exploration costs (a)                                                                           |   | (19,614             | ) |   | (5,083            | )
|Amortization and depletion of exploration costs
    (a)                                         |   | 929                 |   |   | 2,011             |  
|Stripping costs (b)                                                                             |   | (4,562              | ) |   | -                 |  
|Depletion of mining properties (c)                                                              |   | (4,574              | ) |   | -                 |  
|Interest expense on long-term debt adjusted to fair value
      (d)                             |   | -                   |   |   | (264              | )
|Net realizable value adjustments (f)                                                            |   | 1,578               |   |   | -                 |  
|Future income taxes on US GAAP differences                                                      |   | 7,348               |   |   | 3,158             |  
|                                                                                                |   |                     |   |   |                   |  
|Net earnings / (loss) based on US GAAP                                                          |   | 21,099              |   |   | (101,492          | )
|                                                                                                |   |                     |   |   |                   |  
|Amortization of actuarial gains from AOCI to net loss, net
      of tax of $42 (2007 - $70) (e) |   | (108                | ) |   | 179               |  
|Change in funded status of employee benefit plans, net of
      tax of $8 (2007 - $189) (e)     |   | (21                 | ) |   | (343              | )
|                                                                                                |   |                     |   |   |                   |  
|Comprehensive income / (loss) based on US GAAP                                                  | $ | 20,970              |   | $ | (101,656          | )
|                                                                                                |   |                     |   |   |                   |  
|Earnings / (loss) per share                                                                     |   |                     |   |   |                   |  
|Basic                                                                                           | $ | 0.18                |   | $ | (0.90             | )
|Diluted                                                                                         | $ | 0.18                |   | $ | (0.90             | )
|                                                                                                |   |                     |   |   |                   |  

Consolidated Statements of Shareholders Equity:

Deficit:

|                                                                      |   | Year ended          |   |   | Year ended        |  
|--------------------------------------------------------------------- | - | ------------------- | - | - | ----------------- | -
|                                                                      |   | December 31, 2008   |   |   | December 31, 2007 |  
|                                                                      |   | (as
      restated) |   |   |                   |  
|                                                                      |   |                     |   |   |                   |  
|Deficit based on Canadian GAAP                                        | $ | (120,538            | ) | $ | (161,669          | )
|Change in deficit due to reporting currency translation               |   | 7,623               |   |   | 7,623             |  
|Exploration costs (a)                                                 |   | (73,652             | ) |   | (54,038           | )
|Amortization of mineral rights (a)                                    |   | (10,941             | ) |   | (10,941           | )
|Amortization and depletion of exploration costs
    (a)               |   | 4,152               |   |   | 3,223             |  
|Stripping costs (b)                                                   |   | (4,562              | ) |   | -                 |  
|Depletion of mining properties (c)                                    |   | (4,574              | ) |   | -                 |  
|Interest expense on long-term debt adjusted to fair value
      (d)   |   | (2,379              | ) |   | (2,379            | )
|Foreign exchange gain on fair value adjusted long-term debt
      (d) |   | (808                | ) |   | (808              | )
|Future income tax adjustments                                         |   | 16,819              |   |   | 9,030             |  
|Deficit based on US GAAP                                              | $ | (188,860            | ) | $ | (209,959          | )

1

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Restated Reconciliation with United States Generally
Accepted Accounting Principles(in thousands of United States Dollars except per
share data) 
December 31, 2008

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|                                                                                                |   |                   |   |   |                   |  
|----------------------------------------------------------------------------------------------- | - | ----------------- | - | - | ----------------- | -
|Accumulated other comprehensive income:                                                         |   |                   |   |   |                   |  
|                                                                                                |   | December 31, 2008 |   |   | December 31, 2007 |  
|                                                                                                |   |                   |   |   |                   |  
|AOCI based on Canadian GAAP                                                                     | $ | 6,434             |   | $ | 6,434             |  
|Change in AOCI due to reporting currency translation                                            |   | (7,623            | ) |   | (7,623            | )
|Change in funded status of employee benefit plans, net of
      tax of $197 (2007 - $189) (e)   |   | (507              | ) |   | (486              | )
|Amortization of actuarial gains from AOCI to net loss, net
      of tax of $28 (2007 - $70) (e) |   | 71                |   |   | 179               |  
|AOCI based on US GAAP                                                                           | $ | (1,625            | ) | $ | (1,496            | )
|                                                                                                |   |                   |   |   |                   |  

Consolidated Balance Sheets:

The following material balance sheet differences exist between
Canadian and US GAAP:

|Inventory:                                                     |   |                     |   |   |                   |  
|-------------------------------------------------------------- | - | ------------------- | - | - | ----------------- | -
|                                                               |   | December 31, 2008   |   |   | December 31, 2007 |  
|                                                               |   | (as
      restated) |   |   |                   |  
|                                                               |   |                     |   |   |                   |  
|Reported under Canadian GAAP                                   | $ | 60,128              |   | $ | 51,586            |  
|Exploration costs (a)                                          |   | (277                | ) |   | -                 |  
|Stripping costs (b)                                            |   | 152                 |   |   | -                 |  
|Depletion of mining interests (c)                              |   | 441                 |   |   | -                 |  
|                                                               |   |                     |   |   |                   |  
|Reported under US GAAP                                         | $ | 60,444              |   | $ | 51,586            |  
|                                                               |   |                     |   |   |                   |  
|                                                               |   |                     |   |   |                   |  
|                                                               |   |                     |   |   |                   |  
|Mineral properties and related deferred
      costs:           |   |                     |   |   |                   |  
|                                                               |   | December 31, 2008   |   |   | December 31, 2007 |  
|                                                               |   | (as
      restated) |   |   |                   |  
|                                                               |   |                     |   |   |                   |  
|Reported under Canadian GAAP                                   | $ | 396,019             |   | $ | 380,702           |  
|Exploration costs (a)                                          |   | (73,652             | ) |   | (54,038           | )
|Stripping costs (b)                                            |   | (4,713              | ) |   | -                 |  
|Amortization of mineral rights (a)                             |   | (10,941             | ) |   | (10,941           | )
|Amortization and depletion of exploration costs
    (a)        |   | 4,429               |   |   | 3,223             |  
|Depletion of mining interests (c)                              |   | (5,014              | ) |   | -                 |  
|Adjustment for mineral property purchase at fair value
    (d) |   | (3,187              | ) |   | (3,187            | )
|                                                               |   |                     |   |   |                   |  
|Reported under US GAAP                                         | $ | 302,941             |   | $ | 315,759           |  
|                                                               |   |                     |   |   |                   |  
|                                                               |   |                     |   |   |                   |  
|                                                               |   |                     |   |   |                   |  
|Future income tax liability:                                   |   |                     |   |   |                   |  
|                                                               |   | December 31, 2008   |   |   | December 31, 2007 |  
|                                                               |   | (as
      restated) |   |   |                   |  
|                                                               |   |                     |   |   |                   |  
|Reported under Canadian GAAP                                   | $ | 77,301              |   | $ | 108,879           |  
|Future income tax adjustments                                  |   | (16,988             | ) |   | (9,149            | )
|                                                               |   |                     |   |   |                   |  
|Reported under US GAAP                                         | $ | 60,313              |   | $ | 99,730            |  

2

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Restated Reconciliation with United States Generally
Accepted Accounting Principles(in thousands of United States Dollars except per
share data) 
December 31, 2008

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|                                            |   |                   |  |   |                   | 
|------------------------------------------- | - | ----------------- |  | - | ----------------- | 
|Employee future benefits:                   |   |                   |  |   |                   | 
|                                            |   | December 31, 2008 |  |   | December 31, 2007 | 
|                                            |   |                   |  |   |                   | 
|Reported under Canadian GAAP                | $ | 1,659             |  | $ | 3,746             | 
|Funded status of employee benefit plans (e) |   | 605               |  |   | 426               | 
|                                            |   |                   |  |   |                   | 
|Reported under US GAAP                      | $ | 2,264             |  | $ | 4,172             | 

Consolidated Statements of Cash Flows:

As a result of the treatment of mining interests and stripping
costs under items (a) and (b) above, cash expended for exploration and stripping
costs would be classified as operating rather than investing, resulting in the
following totals under US GAAP:

|                                 |   | Year ended        |   |   | Year ended       |  
|-------------------------------- | - | ----------------- | - | - | ---------------- | -
|                                 |   | December 31, 2008 |   |   | December 31,2007 |  
|Cash from / (used in) operations | $ | 31,607            |   | $ | (20,026          | )
|Cash used in investing           | $ | (42,050           | ) | $ | (84,863          | )
|                                 |   |                   |   |   |                  |  

(a)     Mining interests and related deferred costs

In March 2002, the Emerging Issues Committee of the CICA issued
EIC 126  Accounting by Mining Enterprises for Exploration Costs which
affects mining companies with respect to the deferral of exploration costs. EIC
126 refers to CICA Handbook Section 3061, Property, Plant and Equipment,
paragraph .21 which states that for a mining property, the cost of the asset
includes exploration costs if the enterprise considers that such costs have the
characteristics of property, plant and equipment.

Under Canadian GAAP, the Company considers that exploration
costs have the characteristics of property, plant and equipment and,
accordingly, defers such costs.

Under United States GAAP, exploration costs incurred in
locating areas of potential mineralization are expensed as incurred. Commercial
feasibility is established in compliance with the US Securities and Exchange
Commission Industry Guide 7, and consists of identifying that part of a mineral
deposit that can be economically and legally extracted or produced at the time
of the reserve determination. After an area of interest has been assessed as
commercially feasible, expenditures specific to the area of interest for further
development are capitalized.

(b)     Stripping costs

In March 2006, the Emerging Issues Committee of the CICA issued
EIC 160  Stripping Costs Incurred in the Production of a Mining Operation,which addresses the treatment of stripping costs under Canadian GAAP. EIC
160 indicates that Stripping costs should be accounted for according to the
benefit received by the entity. Generally, stripping costs should be accounted
for as variable production costs that should be included in the costs of the
inventory produced (that is, extracted) during the period that the stripping
costs are incurred. However, stripping costs should be capitalized if the
stripping activity can be shown to represent a betterment to the mineral
property. A betterment occurs when the stripping activity provides access to
sources of reserves that will be produced in future periods that would not have
otherwise been accessible in the absence of this activity.

Under Canadian GAAP, stripping costs relating to all ore
deposits that have not been previously mined are capitalized. Stripping costs
for these deposits represent a benefit as access is gained to sources of
reserves that will be produced in future periods, that would otherwise not have
been accessible.

EITF 04-6, Accounting for Stripping Costs Incurred during
Production in the Mining Industry, addresses the treatment of stripping
costs under US GAAP. EITF 04-6 indicates that stripping costs incurred during
the production phase of a mine are variable production costs that should be
included in the costs of inventory produced during the period that the stripping
costs are incurred. In November 2007, a mining industry position paper was
issued that concluded that it was the intent of EITF 04-6 that pre-production
stripping costs incurred to develop each pit within a mining complex to access a single or multiple ore
bodies should generally be capitalized and separately amortized if certain
operational, geological and other factors specific to the mining complex are
met. As a result of this guidance, for United States GAAP, the Company has
capitalized stripping costs relating to one pit for which production has not
commenced and for which there are no future plans to combine the pit with other
pits that are currently in production. All other stripping costs have been
included in the costs of inventory produced.

3

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Restated Reconciliation with United States Generally
Accepted Accounting Principles(in thousands of United States Dollars except per
share data) 
December 31, 2008

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(c)    Depletion of mining interests

Effective April 1, 2008, the Company changed its estimate, for
Canadian GAAP purposes, of the useful lives of its mines to be based on proven
and probable reserves of the mine and the portion of mineralization expected to
be classified as reserves. Previously, the Company estimated the useful life
based on proven and probable reserves to be mined. There is limited guidance
under Canadian GAAP regarding the depletion of mineral interests, however
Section 3061, Property, Plant & Equipment, defines mining
properties as items of property, plant and equipment represented by the
capitalized costs of acquired mineral rights and the costs associated with
exploration for and development of mineral reserves. Therefore, mining
properties are considered property, plant & equipment under Canadian
GAAP. With respect to amortization of property, plant and equipment, Section
3061 indicates that amortization should be recognized in a rational and
systematic manner appropriate to the nature of an item of property, plant and
equipment with a limited life and its use by the enterprise.The Companydetermined that the useful life of its mines is better represented by also
including a portion of mineralization expected to be classified as reserves, as
opposed to only proven and probable reserves.

The United States Securities and Exchange Commission indicated
in Industry Guide 7 that disclosure of reserve information is limited to
proven and probable reserves. Consequently, in December 1996 the American
Institute of Certified Public Accountants International Practices Task Force
indicated that because disclosure of possible reserves is prohibited by SEC
rules, under US GAAP, the base used for the depletion calculation also cannot
include these amounts.

(d)    Fair value of long-term debt

In consideration for the Soyopa claims acquired in November,
2001, the Company entered into a non-interest bearing loan agreement. Commencing
in 2006, the loan has been presented at its fair value under Canadian GAAP.
Under US GAAP, interest must be imputed on this loan in accordance with
Accounting Principles Board (APB) Opinion No. 21, Interest on Receivables
and Payables. The reduction in the principal amount of the loan as a result
of imputing a market rate of interest also reduces the carrying values of the
Company's mineral properties accordingly.

During the periods subsequent to November 2001, the interest
imputed on the loan is recorded as a period expense for US GAAP. For Canadian
GAAP, the imputed interest is added to the cost of the mineral properties.

(e)     Employee future benefits

In September 2006, the Financial Accounting Standards Board
issued FAS No. 58, Employers Accounting for Defined Benefit Pension and
Other Postretirement Plans, which requires the recognition of the funding
status of a benefit plan in the Companys financial statements. FAS No. 158 also
requires that the plan assets and benefit obligations be measured as of the date
of the Companys fiscal year-end. Under FAS No. 158, the Company is required to
recognize unamortized actuarial gains and losses, prior service cost and
remaining transitional amounts not recognized under Canadian GAAP, and to
recognize changes in the funded status, through other comprehensive income, in
the year in which the changes occur.

(f) Inventory net realizable value adjustments

On January 1, 2008, the Company adopted CICA Section 3031,
Inventories, which requires that previous write-downs of inventories be
reversed when there is a subsequent increase in the net realizable value of the
inventories. During the fourth quarter of the current year, the Company
recognized a net realizable value adjustment reversal of $2,899, relating to
inventories that had been written down in the second and third quarters of the
current year. In addition, on January 1, 2008, the Company recognized a net
realizable value adjustment reversal of $1,579 relating to inventories that had
been written down in 2007.

ARB 43 addresses the accounting for net realizable value
adjustment for US GAAP and indicates that when inventories have been written
down below cost at the close of a fiscal year, such reduced amount is to be
considered the cost for subsequent accounting purposes, and therefore no future reversal of the write-down is permitted. APB 28,
however, indicates that recoveries of inventory losses from market declines in
later interim periods of the same fiscal year should be recognized as a reversal
of the original write-down.

4

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Restated Reconciliation with United States Generally
Accepted Accounting Principles(in thousands of United States Dollars except per
share data) 
December 31, 2008

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As the reversal of the net realizable value adjustment
recognized for Canadian GAAP in the fourth quarter related to a net realizable
value adjustment recognized in the same fiscal year, no difference in the
accounting treatment required under Canadian and US GAAP exists. The net
realizable value adjustment reversal recognized on January 1, 2008, however, is
not permitted under US GAAP. The higher value inventories under Canadian GAAP
would have been expensed to production costs during the year. Therefore, the
impact of this difference under US GAAP is to increase net earnings for the year
ended December 31, 2008 of $1,579. This difference has no impact on the December
31, 2008 inventory balance.

(g)     Recent US accounting pronouncements

In September 2006, the FASB issued FAS No. 157, Fair Value
Measurements. FAS No. 157 provides guidance on how to use fair values to
measure assets and liabilities and applies whenever other standards require or
permit assets or liabilities to be measured at fair value. Expanded disclosures
about the use of fair value to measure assets and liabilities are also required.
FAS No. 157 was effective for the Company on January 1, 2008 and is applied on a
prospective basis. In February 2008, the FASB issued FSP FAS No. 157-2 which
delays the effective date of FAS No. 157 for non-financial assets and
liabilities except for items that are recognized or disclosed at fair value in
the financial statements on a recurring basis (at least annually) to fiscal
years beginning after November 15, 2008. The adoption of FAS No 157 had no
impact on the Companys consolidated financial statements. The Company is
evaluating the impact of FSP FAS No. 157-2 on its consolidated financial
statements.

In February 2007, the FASB issued FAS No. 159, The Fair
Value Option for Financial Assets and Financial Liabilities - Including an
amendment of FASB Statement No. 115. FAS No. 159 expands the use of fair
value accounting but does not affect existing standards which require assets or
liabilities to be carried at fair value. The objective of FAS No. 159 is to
improve financial reporting by providing companies with the opportunity to
mitigate volatility in reported earnings caused by measuring related assets and
liabilities differently without having to apply complex hedge accounting
provisions. Under FAS No. 159, a company may elect to use fair value to measure
eligible items at specified election dates and report unrealized gains and
losses on items for which the fair value option has been elected in earnings at
each subsequent reporting date. Eligible items include, but are not limited to,
accounts and loans receivable, available-for-sale and held-to-maturity
securities, equity method investments, accounts payable, guarantees, issued debt
and firm commitments. The Company did not elect to apply FAS 159 to any of its
financial assets or liabilities.

In December 2007, FASB issued FAS No. 160, Noncontrolling
Interests in Consolidated Financial Statements  an amendment of ARB No. 51
and FAS No. 141R Business Combinations both of which are effective for
annual periods beginning after December 15, 2008. The first statement requires
that third party ownership interests in subsidiaries be presented separately in
the equity section of the balance sheet. In addition, the income attributable to
the noncontrolling interest will now be included in consolidated net income and
will be deducted separately at the bottom of the income statement. The second
statement requires that most identifiable assets, liabilities (including
obligations for contingent consideration), noncontrolling interests and goodwill
be recorded at "full fair value". Also, for step acquisitions, the acquirer will
be required to remeasure its noncontrolling equity investment in the acquiree at
fair value as of the date control is obtained and recognize any gain or loss in
income. The Company will adopt these standards on January 1, 2009.

In March 2008, FASB issued FAS No. 161, Disclosures about
Derivative Instruments and Hedging Activities, which requires enhanced
disclosures about how end why a company uses derivative instruments, how
derivative instruments and related hedged items are accounted for under FAS 133
and its related interpretations and how derivative instruments and related
hedged items affect a companys financial position, financial performance and
cash flows. FAS 161 is effective fiscal years and interim periods beginning
after November 15, 2008, with early adoption encouraged. The issuance of this
standard is expected to have no impact on the consolidated financial statements
as the company currently has no derivative instruments.

In May 2008, FASB issued SFAS No 162, The Hierarchy of
Generally Accepted Accounting Principles. This standard identifies the
sources of accounting principles and the framework for selecting the principles
to be used in the preparation of financial statements of nongovernmental
entities that are presented in conformity with generally accepted accounting
principles un the United States. FASB does not expect that this standard will
result in a change in current practice. SFAS No 162 was effective November 15,
2008. The issuance of this standard had no impact on the consolidated financial
statements.

5

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