TORONTO, ONTARIO -- (MARKET WIRE) -- 04/19/12

Caledonia Mining Corporation ("Caledonia" or the "Company") (TSX:CAL)(OTCQX:CALVF)(AIM:CMCL), received notice on April 14, 2012 that, on the same day, the following directors exercised options over an aggregate 5,500,000 ordinary shares of no par value in the Company ("Ordinary Shares") in accordance with the rules of the Company's Share Option Plan.

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                                                      Number of           
                                                       Ordinary      % of 
                Number of                           Shares held  Ordinary 
                  options      Date of    Exercise         post     Share 
Director        exercised        grant       price     exercise   capital 
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                             April 24,   $    0.07                        
S.E. Hayden     4,000,000         2002        Cdn.    4,380,000     0.866%
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                             April 24,   $    0.07                        
F.C. Harvey     1,000,000         2002        Cdn.    1,204,300     0.238%
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                             April 24,   $    0.07                        
C.R. Jonsson      500,000         2002        Cdn.      559,469     0.111%
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Total           5,500,000                                                 
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The proceeds received, totalling $385,000 Cdn., will be added to the Company's operating capital. Pursuant to the exercise of these options, the Company has made application to the London Stock Exchange for 5,500,000 new Ordinary Shares to be admitted to trading on AIM ("Admission"). It is expected that Admission will become effective on 25 April 2012.

Following this notification, the Company has 506,049,303 Ordinary Shares in issue.

Contacts:
Caledonia Mining Corporation
Mark Learmonth
+ 27 11 447 2499
marklearmonth@caledoniamining.com

Canaccord Genuity Limited
John Prior / Sebastian Jones
+ 44 20 7523 8350

Newgate Threadneedle
Terry Garrett /Beth Harris/Graham Herring
+44 20 7653 9850

CHF Investor Relations
Stephanie Fitzgerald
+1 416 868 1079 x 222
stephanie@chfir.com