Issue of Equity

Caledonia Mining Corporation
10 February 2006


                          Caledonia Mining Corporation 

                      Caledonia Completes Private Placement

Toronto, Ontario - February 10th 2006: Caledonia Mining Corporation 
('Caledonia')(TSX: CAL, NASDAQ-OTCBB: CALVF, AIM: CMCL) is pleased to announce 
the completion of a $3,495,201 private placement financing.

The placement, which was handled by fiscal agents in Europe, was for 33,287,626
units priced at $0.105 each. Each unit consists of one common share and one
share purchase warrant. Each warrant entitles the holder to purchase one common
share of Caledonia at a price of $0.20 for a period of 24 months from the date
of issue.

The funds raised will be used to fund some of the recently completed capital
improvements in the Underground and the Metallurgical Plant expansion at the
Barbrook Mine in South Africa, and the exploration activities at the Eersteling
gold property and the Rooipoort PGE Project in South Africa, and at the Nama
Cobalt property in Zambia, and for general corporate purposes.

Stefan Hayden, President and CEO of Caledonia said: 'The commissioning of the
Barbrook gold mine expansion project in South Africa is virtually complete.
There is ongoing optimization of the expanded metallurgical circuits but I am
pleased to report that generally the plant is performing as expected. Mining is
progressing well and the development of the newly found ore zones continue to
show they are economically mineable.'

Caledonia continues to be debt free.

Application has been made by the Company for the 33,287,626 new common shares to
be admitted to trading on AIM and admission to AIM is expected to occur on 14
February 2006.

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

For more information, please contact:

Stefan Hayden                                     Alex Buck / Nick Bias
President and CEO, Caledonia Mining               buck-bias
Tel: [phone]                              Tel: [phone]

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.




                      This information is provided by RNS
            The company news service from the London Stock Exchange