Project Update

Caledonia Mining Corporation
23 January 2006


                          Caledonia Mining Corporation

              Caledonia Commissions Plant Expansion at Barbrook Gold Mine

Toronto, Ontario - January 23, 2006: Caledonia Mining Corporation ('Caledonia')
(TSX: CAL, NASDAQ-OTCBB: CALVF, AIM: CMCL) is pleased to announce the completion
and commissioning of the metallurgical plant expansion at its wholly owned
Barbrook gold mine in South Africa.

The expansion project effectively more than doubles the plant milling capacity
and includes crushing, primary milling, flotation, carbon removal, ultra-fine
grinding, oxidation and resin-in-leach circuits.

Stefan Hayden, President and CEO of Caledonia, said 'The plant expansion will
enable Barbrook to increase its gold production target to 22,0000 ounces per
annum for the 2006 financial year and take advantage of the current high gold
price and positive investor sentiment towards the metal. The mine's underground
development program has identified substantial additional and accessible ore
sources which will provide sufficient mining flexibility to meet the increased
milling target of 18,000 tonnes per month'

Caledonia continues to be unhedged and debt free.


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