Re: Warrants

Caledonia Mining Corporation
14 September 2005

                          CALEDONIA MINING CORPORATION

               CALEDONIA AMENDS TERMS OF SHARE PURCHASE WARRANTS

Toronto, Ontario - September 14, 2005: Caledonia Mining Corporation
('Caledonia') (TSX: CAL, NASDAQ: CALVF, AIM: CMCL) has amended the terms of
27,232,909 outstanding share purchase warrants - which have had exercise dates
of September 29, 2005 as to a portion, and October 26, 2005 as to the balance -
all exercisable at $0.55 per share. All of the warrants will now be exercisable
at $0.11 per share on or before October 31, 2005.

The warrants were granted in a 2004 private placement by Caledonia. As they are
now seriously out of the money it is considered appropriate the exercise prices
be reduced to $0.11 per share. The closing market price of Caledonia's shares on
the Toronto Stock Exchange on September 12, 2005 was $0.11 per share. Caledonia
is optimistic that, based on the new terms, a significant number of the warrants
will be exercised thereby providing it additional working capital.

For further information please contact Caledonia Mining Corporation:

Stefan Hayden           James Johnstone              Alex Buck / Nick Bias
President and CEO,      V-P Operations and COO
Caledonia Mining        Caledonia Mining             Buck-Bias
Tel: [phone]    Tel: [phone]       Tel: [phone]


Further information regarding Caledonia's exploration activities and operations
along with its latest financials may be found on the Corporation's website 
http://www.caledoniamining.com




                      This information is provided by RNS
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