Caledonia Announces the Signing of Two Further ...

FOR:  CALEDONIA MINING CORPORATION

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

March 11, 2008

Caledonia Announces the Signing of Two Further Cobalt Sales Agreements

TORONTO, ONTARIO--(Marketwire - March 11, 2008) - Caledonia Mining Corporation
("Caledonia")(TSX:CAL)(OTCBB:CALVF)(AIM:CMCL) is pleased to announce its wholly owned subsidiary company
Caledonia Nama Limited ("Nama") has signed two more cobalt off-take agreements with large Chinese refiners.
This now brings Nama's contractual commitments for the Nama Cobalt Project between 2009 and 2013 to a total of
35,560 tonnes (+/-10% at Nama's option) of cobalt metal equivalent.

Under the terms of these two new agreements Nama will supply a minimum of 16,560 tonnes of cobalt metal
equivalent, in the form of cobalt hydroxide, from the Nama Cobalt Project from 2009 until 2013. These
agreements, in common with the first agreement announced on January 29, 2008, specify that the price shall be
based on the published monthly average quotation for Cobalt low grade on the London Metal Bulletin and contain
a guaranteed "Take or Pay" minimum cobalt price of US$12/lb.

The Nama Cobalt Project is located in Northern Zambia. Nama plans to commence mining Anomalies "A" and "C"
using open pit mining methods, pre-concentration and conventional cobalt extractive technology. Detailed mine
planning is underway and the Company expects to commence operations in early 2009.

Commenting on the announcement Stefan Hayden, President and CEO, said "The completion of the three long term
supply contracts underpins the initial planned production capacity at Nama. The signing of these two additional
contracts further demonstrates the strong demand for cobalt in China and confirms the attractiveness of the
Nama Project, as a primary cobalt producer, to refiners. Caledonia continues to progress the Nama Project
towards production as rapidly as possible."

Negotiations on additional contracts are continuing and will be announced once finally concluded.

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

-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
Andrew Smith
[phone]

-0-

Caledonia Mining Corporation