Caledonia Concludes the Sale of the Barbrook Mine

FOR:  CALEDONIA MINING CORPORATION

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

June 2, 2008

Caledonia Concludes the Sale of the Barbrook Mine

TORONTO, ONTARIO--(Marketwire - June 2, 2008) - Caledonia Mining Corporation ("Caledonia")
(TSX:CAL)(OTCBB:CALVF)(AIM:CMCL) is pleased to announce that the sale of Barbrook Mines Limited, in
South Africa, to Eastern Goldfields SA (Pty) Ltd was concluded on May 30, 2008 and that Caledonia has
received approximately C$9.3 million in full settlement of the sale price. In addition to the sale
price, and in terms of the sale agreement, Eastern Goldfields has now assumed liability for the
Barbrook creditors of approximately C$1.2 million and for all Barbrook's present and future
rehabilitation liabilities.

Further information regarding Caledonia's exploration activities and operations along with 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.

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FOR FURTHER INFORMATION PLEASE CONTACT:

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

OR

BuckBias
Alex Buck
[phone]

OR

RBC Capital Markets
Martin Eales
[phone]

Caledonia Mining Corporation