Exhibit 99.4

|                      |                                  |                         
|--------------------- | -------------------------------- | ------------------------
|                      |                                 
|KPMG LLP              |                                 
|Chartered Accountants |                                 
|                      | Suite 1500 Purdys Wharf Tower I |                         
|                      | 1959 Upper Water Street          | Telephone (902) 492-6000
|                      | Halifax NS B3J 3N2               | Telefax (902) 429-1307  
|                      | Canada                           | 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, 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.
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. 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.

/s/ KPMG LLP

Chartered Accountants 
Halifax, Canada 
March 24, 2009

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

The following represents additional information to the
consolidated financial statements of Gammon Gold Inc. (the Company) that were
prepared in accordance with accounting principles generally accepted in Canada
(Canadian GAAP). 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).


|                                                                                                |   |                   |   |   |                   |  
|----------------------------------------------------------------------------------------------- | - | ----------------- | - | - | ----------------- | -
|Consolidated Statements of Operations and Comprehensive
      Income / (Loss):                  |   |                   |   |   |                   |  
|                                                                                                |   | Year ended        |   |   | Year ended        |  
|                                                                                                |   | December 31, 2008 |   |   | December 31, 2007 |  
|                                                                                                |   |                   |   |   |                   |  
|Net earnings / (loss) based on Canadian
      GAAP                                              | $ | 30,239            |   | $ | (101,314          | )
|Exploration costs(a)                                                                            |   | (19,614           | ) |   | (5,083            | )
|Amortization and depletion of exploration
      costs (a)                                       |   | 915               |   |   | 2,011             |  
|Stripping costs (b)                                                                             |   | (2,133            | ) |   | -                 |  
|Depletion of mining properties
    (c)                                                          |   | (5,105            | ) |   | -                 |  
|Interest expense on long-term debt adjusted to fair value
      (d)                             |   | -                 |   |   | (264              | )
|Future income taxes on US GAAP differences                                                      |   | 7,132             |   |   | 3,158             |  
|                                                                                                |   |                   |   |   |                   |  
|Net earnings / (loss) based on US GAAP                                                          |   | 11,434            |   |   | (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 earnings / (loss) based on US GAAP                                                | $ | 11,305            |   | $ | (101,656          | )
|                                                                                                |   |                   |   |   |                   |  
|Earnings / (loss) per share                                                                     |   |                   |   |   |                   |  
|Basic                                                                                           | $ | 0.10              |   | $ | (0.90             | )
|Diluted                                                                                         | $ | 0.09              |   | $ | (0.90             | )
|                                                                                                |   |                   |   |   |                   |  
|                                                                                                |   |                   |   |   |                   |  
|Consolidated Statements of Shareholders
      Equity:                                          |   |                   |   |   |                   |  
|                                                                                                |   |                   |   |   |                   |  
|Deficit:                                                                                        |   |                   |   |   |                   |  
|                                                                                                |   | December 31, 2008 |   |   | December 31, 2007 |  
|                                                                                                |   |                   |   |   |                   |  
|Deficit based on Canadian GAAP                                                                  | $ | (131,430          | ) | $ | (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)                                         |   | 4,138             |   |   | 3,223             |  
|Stripping costs (b)                                                                             |   | (2,133            | ) |   | -                 |  
|Depletion of mining properties (c)                                                              |   | (5,105            | ) |   | -                 |  
|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                                                                   |   | 16,162            |   |   | 9,030             |  
|Deficit based on US GAAP                                                                        | $ | (198,525          | ) | $ | (209,959          | )

1

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


|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 |  
|                                                                                           |   |                   |   |   |                   |  
|Reported under Canadian GAAP                                                               | $ | 49,318            |   | $ | 51,586            |  
|Exploration costs (a)                                                                      |   | (291              | ) |   | -                 |  
|Stripping costs
    (b)                                                                    |   | 2,580             |   |   | -                 |  
|Depletion of mining interests
    (c)                                                      |   | 1,313             |   |   | -                 |  
|                                                                                           |   |                   |   |   |                   |  
|Reported under US GAAP                                                                     | $ | 52,920            |   | $ | 51,586            |  
|                                                                                           |   |                   |   |   |                   |  
|                                                                                           |   |                   |   |   |                   |  
|                                                                                           |   |                   |   |   |                   |  
|Mineral properties and related deferred
      costs:                                       |   |                   |   |   |                   |  
|                                                                                           |   | December 31, 2008 |   |   | December 31, 2007 |  
|                                                                                           |   |                   |   |   |                   |  
|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)                                                      |   | (6,418            | ) |   | -                 |  
|Adjustment for mineral property purchase at
      fair value (d)                           |   | (3,187            | ) |   | (3,187            | )
|                                                                                           |   |                   |   |   |                   |  
|Reported under US GAAP                                                                     | $ | 301,537           |   | $ | 315,759           |  
|                                                                                           |   |                   |   |   |                   |  
|                                                                                           |   |                   |   |   |                   |  
|                                                                                           |   |                   |   |   |                   |  
|Future income tax liability:                                                               |   |                   |   |   |                   |  
|                                                                                           |   | December 31, 2008 |   |   | December 31, 2007 |  
|                                                                                           |   |                   |   |   |                   |  
|Reported under Canadian GAAP                                                               | $ | 77,301            |   | $ | 108,879           |  
|Future income tax adjustments                                                              |   | (16,331           | ) |   | (9,149            | )
|                                                                                           |   |                   |   |   |                   |  
|Reported under US GAAP                                                                     | $ | 60,970            |   | $ | 99,730            |  

2

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


|                                            |   |                   |  |   |                   | 
|------------------------------------------- | - | ----------------- |  | - | ----------------- | 
|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

---

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


(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 Company determined 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.

4

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


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.

As the reversal of the net realizable value adjustment
recognized for Canadian GAAP in the year 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.

(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. 51and 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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