Government of Zimbabwe Sets Out Regulations for...

FOR:  CALEDONIA MINING CORPORATION

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

February 12, 2010

Government of Zimbabwe Sets Out Regulations for Indigenisation

TORONTO, ONTARIO--(Marketwire - Feb. 12, 2010) - Caledonia Mining Corporation ("Caledonia")
(TSX:CAL)(OTCBB:CALVF)(AIM:CMCL) notes the recent gazetting of regulations pursuant to section 21 of
the Indigenisation and Empowerment Act of 2008, in terms of which all companies are required to submit
an indigenisation plan by April 15, 2010 explaining how their Zimbabwean operations will achieve the
required minimum level of 51% ownership by indigenous Zimbabweans within five years across all
business sectors.

The regulations also provide for the gazetting within twelve months of further rules relating to each
sector and subsector of the economy as to what lesser share than the minimum indigenisation and
empowerment quota may apply to businesses operating in the sector or subsectors in question.

The regulations also provide that a level of indigenisation lower than 51% may be assigned to a
foreign-owned company where there are "socially and economically desirable objectives" in favour of
such lower level.

The Chamber of Mines of Zimbabwe, on behalf of the mining sector currently, is in discussions with
relevant authorities with respect to finalising the indigenisation and empowerment quota for the
mining industry.

Caledonia's formal response will be guided by the conclusion of these ongoing discussions and the
applicable legislation.

Shareholders will be kept updated on further indigenisation developments.

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
Mark Learmonth
[phone]

OR

BuckBias
Alex Buck
[phone]

OR

RBC Capital Markets
Martin Eales
[phone]

Caledonia Mining Corp