Caledonia Mining Corporation: Exercise of Options

TORONTO, ONTARIO -- (Marketwired - April 12, 2013) - Caledonia Mining Corporation (the "Company") (TSX:CAL) (OTCQX:CALVF) (AIM:CMCL),received notice today that fourteen (14) holders of share purchase options have exercised options over an aggregate 4,117,300 unconsolidated ordinary shares in the Company ("Ordinary Shares"). The details of the options exercised by four (4) optionees who are Persons Disclosing Management Responsibility of the Company and their resultant number of shares held (both before and after the consolidation which takes effect on April 12, 2013) are as follows:

                                                                        Percentage of issued
                                   No. shares held after   No. shares held after    shares of Company
Exercising Option    No. Options  completion of Exercise  completion of Exercise    held after completion
Holders & Positions    Exercised  (before consolidation)  (after consolidation)  of Exercise
C.R. Jonsson Director
  Chairman and Secretary    1,000,000        1,559,469            155,947         0.30
C. Harvey
  Director                    400,000        1,604,300            160,430         0.31
J. Johnstone
  Director                    300,000          360,000             36,000         0.07
M. Learmonth
  VP, Business Development    447,300        1,367,300            136,730         0.26
TOTAL:                      2,147,300

The other ten (10) persons who exercised options over 1,970,000 shares are employees of or service providers to the Company or its subsidiaries.

All of the options were exercised at an exercise price of Cdn$0.07 per share with the exception that 9,800 options exercised by Mark Learmonth which were at $0.09 per share.

Apart from the people listed above, none of the persons who have exercised options are Persons Disclosing Management Responsibility of the Company.

The Company has applied for the 4,117,300 new Ordinary Shares to be admitted to trading on AIM and admission is expected to take place on April 18, 2013. Following the completion of the share consolidation the optionees will receive 411,730 consolidated shares.

The foregoing refers to unconsolidated shares in the capital of the Company. The Company has announced, in its Release dated March 14, 2013, that its issued Ordinary Shares will be consolidated on the basis of 1 consolidated Ordinary Share for every 10 Ordinary Shares issued (the "Consolidation"). The Release has advised that, as a result of the Consolidation, the consolidated Ordinary Shares of the Company will commence trading on all of the markets upon which the Company's shares trade at the opening of trading on April 12, 2013.

Following this notification, the Company has 521,179,080 unconsolidated Ordinary Shares in issue.



Contact

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

Canaccord Genuity Limited
Andrew Chubb / Joe Weaving
+ 44 20 7523 8350

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

CHF Investor Relations
Jeremy Hill
+1 416 868 1079 x 238
jeremy@chfir.com