Caledonia Signs Formal Agreements for Sale of B...

FOR:  CALEDONIA MINING CORPORATION

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

April 7, 2008

Caledonia Signs Formal Agreements for Sale of Barbrook and Eersteling Mines

TORONTO, ONTARIO--(Marketwire - April 7, 2008) - As previously announced on February 25, 2008 and March 4, 2008
Caledonia Mining Corporation ("Caledonia") (TSX:CAL)(OTCBB:CALVF)(AIM:CMCL) is pleased to confirm it has now
signed formal agreements for the sale of 100% of the issued shares of the subsidiary companies owning the
Barbrook and Eersteling mines.

The purchaser of Barbrook is Eastern Goldfields SA (Proprietary) Limited, based in Nelspruit, South Africa. The
purchaser of Eersteling is Oretech Resources Inc. based in Vancouver, British Columbia, Canada.

The purchase price for Barbrook will be South African Rand 70,000,000 (approximately $9,030,000 CDN). The
purchase price of Eersteling is $3,810,000 CDN (approximately South African Rand 29,500,000).

The closing of both Agreements is subject to the fulfilment of various conditions - which Management expects
will be fulfilled without difficulty. The agreed projected date for the closing of the Barbrook sale is April
22, 2008, and of the Eersteling sale, July 31, 2008.

Management of Caledonia will work with the purchasers to try to insure that all of the conditions are satisfied
or met by the proposed closing dates.

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

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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