Mr. Mark Learmonth reports

CALEDONIA DECLARES EIGHTH QUARTERLY DIVIDEND

Caledonia Mining Corp. has declared dividend No. 10, this being a dividend of 1.5 cents on each of the company's common shares held at 5 p.m. ET on the record date.

The relevant dates relating to the dividend are as follows:

• Ex dividend date for shares held on the Toronto register: Oct. 14, 2015;
• Ex dividend date for shares held on Crest in the United Kingdom: Oct. 15, 2015;
• Record date: Oct. 16, 2015;
• Dividend cheque mailing date: Oct. 30, 2015.

Shareholders who are registered in the United States of America and the United Kingdom will be paid in U.S. dollars and British pounds, respectively. The U.S.-dollar and British-pound dividend payments will be calculated using the relevant Bank of Canada exchange rates at noon on the record date, and will be after deduction of Canadian withholding tax and any other taxes that may apply.

This dividend is an eligible dividend for the purposes of the Income Tax Act (Canada).

Caledonia's dividend policy

Caledonia's strategy to maximize shareholder value includes a quarterly dividend policy. In 2014, the company paid an annual aggregate dividend of six cents per common share. The first quarterly dividend was paid on Jan. 31, 2014, and subsequent quarterly dividends were paid at the end of April, July and October, 2014, and at the end of January, April and July, 2015.

It is currently envisaged that the existing dividend policy of six cents per annum, paid in equal quarterly instalments, will be maintained. Caledonia will continue to maintain its strong financial position so that it can implement its stated growth strategy without the need to raise third party finance.

We seek Safe Harbor.