(CMCL) Caledonia Mining

Blanket Production Update and 2012 Outlook

Toronto, Ontario - January 24, 2012:  Caledonia Mining Corporation ("Caledonia") (TSX: CAL, NASDAQ-OTCQX: CALVF, AIM: CMCL) today announces gold production from the Blanket Mine in Zimbabwe during Q4 2011 which ended December 31, 2011.

·     10,533oz gold produced during Q4 2011, representing an 8.1% increase on Q3 2011 (9,743oz), and a 69% increase on Q4 2010 (6,227oz)

·     Total 2011 gold production was 35,826oz, a 102% increase over the annual gold production in 2010 of 17,707oz

·     Targeted 2012 annual gold production of 40,000oz

Blanket Production

The Company is pleased to announce a successful year at the Blanket Mine which produced 35,826oz of gold, an increase of 102% over the previous year.

In accordance with our aim to continuously improve operations at Blanket, the following infrastructure, process and equipment investment programmes were undertaken during the final quarter of 2011:

·   Considerable work on the refurbishment of the 14, 18 and 22 Level underground haulages continued throughout Q4 and this is expected to be completed by the end of Q1 2012.  This programme is essential to support and sustain our increased underground production.

·   The installation of an automatic cyanide measuring and dosing system on the CIL circuit was commissioned. This installation is providing both better control over, and a detectable reduction in, cyanide usage per tonne of ore milled.

·   Certain rectification and maintenance work on the 825m deep No4 Shaft was commenced during November 2011.  This work is expected to be completed by the end of February 2012 and once completed will allow Blanket to increase the speed of the No4 Shaft Winder, thereby increasing hoisting capacity.  As noted in the Q3 MD&A, this work may have an adverse effect on gold production in the first quarter of 2012.

·   A Belt Scale was installed on the No1 Conveyor Belt so that all ore tonnages delivered from various ore sources such as the 14 Level mid-shaft loading station, Lima, and in due course the satellite properties such as GG and Mascot, can be individually and accurately measured.  The re-programed computerised recording system is expected to be commissioned during early February and the system is then expected to facilitate further metallurgical optimisation.

Outlook

Following a year in which Caledonia has increased production at Blanket by 102% to 35,826oz (2010 gold production was 17,707oz), we are now confident that we will be able to achieve our targeted gold production of 40,000oz for the current financial year.  Discussions with the Government of Zimbabwe regarding the indigenisation of the Blanket Mine have continued. 

For more information, please contact:

Further information regarding Caledonia's exploration activities and operations along with its latest financials and Management Discussion and Analysis may be found at www.caledoniamining.com

Caledonia remains committed to Zimbabwean Indigenisation negotiations

Toronto, Ontario - December 13, 2011:  Caledonia Mining Corporation ("Caledonia") (TSX: CAL, NASDAQ-OTCBB: CALVF, AIM: CMCL) announces its full commitment to the negotiations taking place with the Government of Zimbabwe relating to an Indigenisation Plan for its Blanket Mine in Zimbabwe.

The Chairman of the Board of Caledonia Mining confirms that the Board and executive management remain fully committed to the negotiations that are currently on-going with the Government in an attempt to arrive at a mutually agreeable Indigenisation Implementation Plan.  Caledonia submitted a revised Indigenisation Plan in October 2011 and has timeously responded to requests from the Zimbabwe Government for further information in respect of the Plan.  Members of Caledonia's executive management team have meetings scheduled with the Indigenisation Board and its advisers within the next few days.  Caledonia expects that it will be able to address any outstanding concerns regarding the Indigenisation of Blanket Mine within the applicable timeframes. 

Caledonia and its Chief Executive Officer, Mr Hayden, categorically deny having made any statements to the effect that he and Caledonia are not wholly committed to the rapid implementation of Indigenisation of the Blanket Mine.  Mr Hayden also refutes allegations that he has "scoffed at" the empowerment drive, that he has branded indigenisation as a "political gimmick", or that Caledonia has in any way refused to comply with the Indigenisation laws or caused delays in the Indigenisation negotiations.

For more information, please contact:

Further information regarding Caledonia 's exploration activities and operations along with its latest financials and Management Discussion and Analysis may be found at www.caledoniamining.com

Major Shareholder Notification

Toronto, Ontario - November 15, 2011: Caledonia Mining Corporation (the "Company") (TSX: CAL, OTCQX: CALVF, AIM: CMCL) has received notification from Pinetree Capital Ltd. ("Pinetree"), a Canadian publicly traded diversified investment and venture capital company, that it has purchased 290,000 common shares of the Company through the facilities of the Toronto Stock Exchange.  Pinetree has also advised the Company that, as a result of the purchase of the shares, it and its joint actors collectively hold an aggregate of 50,263,000 common shares of the Company - or approximately 10.04% of the Company's total issued and outstanding common shares.  Of this total, Pinetree owns 48,250,000 shares, being approximately 9.6% of the Company's total issued common shares.

For more information, please contact:

Further information regarding Caledonia's exploration activities and operations along with its latest financials and Management Discussion and Analysis may be found at www.caledoniamining.com