Update on Drilling

Caledonia Mining Corporation
08 May 2007







                          Caledonia Mining Corporation
                          'Caledonia' or 'the Company'

 Caledonia Announces the Phase 3 Drilling Program at the Nama Cobalt Project in
         Zambia and the Filing of a further NI 43-101 Technical Report


Caledonia Mining Corporation (TSX: CAL, NASDAQ-OTCBB: CALVF and AIM: CMCL) 
announces the Phase 3 drilling program at the Nama Cobalt Project in Zambia. The 
Company has also filed on SEDAR and its website (www.caledoniamining.com) the National 
Instrument 43-101 Technical Report for Anomalies 'A' and Anomaly 'C', which have a 
combined total resource of 121,874,000 tons at a Cobalt grade of 0.047% (see press
release dated April 2, 2007).

Nama
Caledonia is the 100% owner of the Nama Project, which covers a number of
polymetallic oxide deposits containing cobalt and copper, located on the
northwestern flank of the Zambia Copperbelt.

The Drilling Program
The Phase 3 Drilling Program will commence in June 2007 and will consist of
additional diamond and reverse circulation drilling of anomalies 'A', 'C' 'D',
'E' and 'F'. This program is expected to be completed by December 2007 at an
estimated cost of US$2.3 million, and Caledonia anticipates reporting the
results of this drilling program in the second quarter 2008.

The objective of the Phase 3 Drilling Program is to further enhance the
geological confidence at anomalies A and C, as well as prove up an additional
resource tonnages at increased geological confidence at anomalies D, E and F
with a view to publishing a NI 43-101 resource statement for anomalies A, C, D,
E and F in 2008.

Metallurgical Testwork Update on Anomaly 'A'
The metallurgical testwork is well advanced and is now focusing on verifying the
hydrometallurgical aspects of the proposed process. It is anticipated that this
will be completed by second quarter 2007. Following completion of this testwork,
an independent pre-feasibility study will be prepared to verify the Company's
internal project economics and should be completed by the end of the fourth
quarter 2007.

The NI 43-101 Technical Report was prepared by Mr. David Grant BSc, MSc, Pr Sci
Nat, CGEOL, FGS, FGSSA, FSAIMM who is the Independent Qualified Person for the
purposes of Canadian securities regulations for the Nama project. Mr. Grant was
following-up on a recommendation made in his Technical Report for the Anomaly
'A' resource, which can be viewed at http://www.caledoniamining.com/
technical.php

For more information, please contact:

Stefan Hayden           Alex Buck / Nick Bias       Jeremy Porter
President and CEO,      buck-bias                   Seymour Pierce Limited
Caledonia Mining        Tel: [phone]       AIM Nominated Advisor
Tel: [phone]                                Tel: [phone]

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

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