Caledonia Announces NI 43-101 Resource for Anom...

FOR:  CALEDONIA MINING CORPORATION

TSX SYMBOL:  CAL
OTC Bulletin Board SYMBOL:  CALVF
AIM SYMBOL:  CMCL

May 6, 2008

Caledonia Announces NI 43-101 Resource for Anomaly "D" and Provides Management Comments on the Nama Cobalt
Project in Zambia

TORONTO, ONTARIO--(Marketwire - May 6, 2008) - Caledonia Mining Corporation ("Caledonia")
(TSX:CAL)(OTCBB:CALVF)(AIM:CMCL) has received and filed an Independent Technical Report, compliant with the
specifications and requirements of the Canadian National Instrument 43-101, for the "D" resource body of
Caledonia's Nama Cobalt Project.

The NI 43-101 Report.

The Report, dated May 1, 2008, is by David Grant. It can be viewed on
http://www.caledoniamining.com/technical.php and on SEDAR at: www.sedar.com.

The new NI 43-101 report concludes that resource body "D" has a potentially economic resource of cobalt and
copper with lesser quantities of nickel. Drilling has traced the "D" resource body from outcrop to a minimum
depth of 116 metres below surface.

The report details an Indicated Resource of 9.2 million tonnes at grades of 0.165% cobalt, 0.067% copper and
0.050% nickel, containing 15,180 tonnes of cobalt, 6,100 tonnes of copper, and 4,600 tonnes of nickel metal in-
situ.

The above high grade zone of "D" lies in close proximity to, and partly contiguous with, an Inferred Resource
of 54.7 million tonnes detailed in the table below. The evaluation is based on 17 RC intersections with maximum
hole spacing of 500 metres. Exploration activities during the 2008 field season will concentrate on upgrading
the category and quantum of the resources by closer spaced drilling within Resource Body D. The area is divided
into five separate Blocks.

/T/

            Indicated & Inferred Resources in Resource Body "D"
                       Down to 50 metres below surface
----------------------------------------------------------------------------
                                                    Grade (% metal)
Resource                                      ------------------------------
Category                Block          Tonnes    Cobalt    Copper    Nickel
----------------------------------------------------------------------------
Indicated      D1 (iron oxide)      9,197,000     0.165     0.067     0.050
----------------------------------------------------------------------------
Inferred       D1 (iron oxide)     14,323,000     0.138     0.054     0.051
----------------------------------------------------------------------------
Inferred       D2 (Peripheral)      9,617,000     0.041     0.019     0.017
----------------------------------------------------------------------------
Inferred    D3 - D5 (elluvial)     30,772,000     0.040     0.021     0.015
----------------------------------------------------------------------------

/T/

The "Qualified Person" for the purposes of Canadian securities laws, Mr. David Grant BSc., MSc., Pr Sci. Nat.,
CGEOL, FGS, FGSSA, FSAIMM, has reviewed the technical content of the above portion of this release and is
satisfied that it is an accurate reflection of the findings of the Independent Technical Report prepared by
Applied Geology and Mining (Proprietary) Limited, whose Managing Director is Mr. Grant.

Management Comments.

In light of these new resource figures and the potential for the mining and stripping ratio to be considerably
lower than that for resource bodies "A" or "C", Management is changing the focus of Caledonia's efforts to
resource body D. A study, which is underway, has been expanded to incorporate resource body "D". Test work is
currently being conducted on "D" with a view to rapidly finalizing the crushing, milling and metallurgical flow
sheets and the associated operating parameters. A programme of closer spaced in-fill drilling will be conducted
during 2008 with the objective of upgrading the inferred tonnage shown above to the Indicated category.

An Independent 43-101 compliant Report on resource bodies "A" and "C" was filed on April 16, 2007. It provides
the following resource figures:

/T/

     Combined Indicated Resources of Resource Bodies "A" and "C"
--------------------------------------------------------------------
Resource Body          Tonnes          % Co         % Cu        % Ni
--------------------------------------------------------------------
A                  43,656,000         0.055        0.099       0.011
--------------------------------------------------------------------
C                  78,218,000         0.043        0.012       0.019
--------------------------------------------------------------------
Total             121,874,000         0.047        0.043       0.016
--------------------------------------------------------------------
The above estimates were prepared at a 0.02% cobalt cut-off.

/T/

The "A" and "C" resource bodies contain larger tonnages, but lower grades than resource body "D". Internal
calculations show the following comparative stripping ratios - which are much better for resource body "D":

/T/

--------------------------------------------------------------------
Resource body        Est. Mining Rate      Est. Overburden Stripping
                          Tonnes/year                    Tonnes/year
--------------------------------------------------------------------
"D1" & "D2"                 6,000,000                      2,000,000
--------------------------------------------------------------------
"A"                        40,000,000                     48,000,000
--------------------------------------------------------------------

/T/

Management believes the resources contained in the D1 indicated and inferred blocks of resource body "D", on
their own, are considered, subject to the completion of satisfactory metallurgical test work, to be sufficient
to fulfill a three year period of mining and production in terms of the existing five year off-take contracts
for over 10,000 tonnes of cobalt metal per annum. Some of the resource bodies comprising the "D" resource, as
defined by the report, remain open-ended on strike and/or down dip.

Caledonia's Nama Project is located on the northwestern flank of the Zambian Copperbelt, and covers a number of
polymetallic oxide deposits containing cobalt, copper and nickel. In total 17 cobalt anomalies have been
identified in the Nama Project area, of which five have been explored to varying extents, and three of which
are now described as resource bodies with NI 43-101 compliant resources.

Approval of the Environmental Impact Statement ("EIS") covering the proposed two alternative routes for Nama
power supply and for the new access road has been received from the Environmental Council of Zambia ("ECZ"). An
EIS for the planned mining and metallurgical plant operations, covering resource bodies "A", "C" and "D", has
been completed and submitted to the ECZ for approval.

Qualified Person:

The Qualified Person in relation to the Management Comments portion of this Release is Dr. Trevor Pearton, BSc
Eng (Mining Geology), PhD (Geology) FGSSA, Vice-President, Exploration of the Company.

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

Certain statements included herein are "forward-looking statements". Management cautions that forward-looking
statements are not guarantees and that actual result could differ materially from those expressed or implied in
the forward-looking statements. Important factors that could cause the actual results of operations,
exploration or development programs, or the financial condition of the Company, to differ include, but are not
necessarily limited to, the risks and uncertainties discussed in documents filed by the Company with the
various regulatory authorities having jurisdiction.

-30-

FOR FURTHER INFORMATION PLEASE CONTACT:

Caledonia Mining Corporation
Stefan Hayden
President & CEO
[phone]
Website: www.caledoniamining.com

OR

BuckBias
Alex Buck
[phone]

OR

RBC Capital Markets
Martin Eales
[phone]

Caledonia Mining Corporation