Re Agreement

Caledonia Mining Corporation
31 January 2008




         Caledonia Mining Signs Marketing Agreement with MRI Trading AG


Toronto, Ontario - January 31, 2008:  Caledonia Mining Corporation ('Caledonia')
(TSX: CAL, NASDAQ-OTCBB: CALVF, AIM: CMCL) is pleased to announce it has
appointed MRI Trading AG as the worldwide agent for Caledonia Nama Limited,
excluding China and Taiwan which is handled by Pan Asian Oasis Inc., for the
marketing and administration of long term cobalt hydroxide off-take agreements.


MRI Trading AG is a top-tier trader of non-ferrous concentrates, minor metals
and other raw materials. It is part of the MRI Group of companies and a leading
investment and trading group in the commodities arena. The MRI Group has a
global presence through its offices in Beijing and Shanghai, Santiago de Chile,
Lubumbashi, Johannesburg, New Delhi and Brisbane.

Pan Asian Oasis Inc. has for the past few years been active in assisting major
refineries and companies in China and Taiwan with securing long term strategic
supplies of cobalt, copper and other non-ferrous metals.

For more information, please contact:


Stefan Hayden, President & CEO     Alex Buck               Andrew Smith
Caledonia Mining                   BuckBias                RBC Capital Markets
Tel: [phone]               Tel: [phone]   Tel: [phone]


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