Blanket Gold Mine in Zimbabwe achieves record daily production

TORONTO, Sept. 8, 2011 /CNW/ --
TORONTO, Sept. 8, 2011 /CNW Telbec/ - Caledonia Mining Corporation
('Caledonia') (TSX: CAL) (NASDAQ-OTCBB: CALVF) (AIM: CMCL) is pleased
to report that the Blanket Gold Mine ('Blanket') in Zimbabwe has broken
its underground production record.

On 6(th) September 2011, Blanket's No 4 Shaft hoisted 1,220 tonnes of ore and a
further 141 tonnes of ore were hoisted via the Lima Shaft. This daily
total ore production of 1,361 tonnes is significantly higher than
Blanket's target of 1,000 tonnes of ore per day and represents a new
underground mining record for the mine, for which production records
date back to 1906.

Commenting on this news, Stefan Hayden, Caledonia's Chief Executive
said: 'This is a tremendous achievement by the management and employees
at Blanket, who are to be heartily congratulated and bodes well for
Blanket achieving its future production targets.'

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