Blanket Mine's 10 MVA Standby Generating In...

FOR:  CALEDONIA MINING CORPORATION

TSX SYMBOL:  CAL
OTC Bulletin Board SYMBOL:  CALVF
AIM SYMBOL:  CMCL

May 31, 2011

Caledonia Mining Corporation: Blanket Mine's 10 MVA Standby Generating Installation Commissioned and Refiling
of First Quarter Financial Statements to Provide Additional IFRS Information

TORONTO, ONTARIO--(Marketwire - May 31, 2011) - Caledonia Mining Corporation ("Caledonia" or "the Company")
(TSX:CAL)(OTCBB:CALVF)(AIM:CMCL) Blanket Mine has successfully commissioned the 10 MVA generator power plant.
The installation of the standby generator sets ensures that Blanket Mine is now self-sufficient and able to
continue all its surface and underground operations in the event of power disruptions.

Subsequent to Caledonia filing its Q1 2011 results, the Ontario Securities Commission issued a release to all
reporting issuers who have filed their first IFRS Q1 interim financial statements. As a result Caledonia has
added an additional comparative condensed consolidated statement of changes in equity for the three month
period ended March 31, 2010.

The revised Financial Statements have been filed on SEDAR and are available on Caledonia's website.

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

FOR FURTHER INFORMATION PLEASE CONTACT:

Caledonia Mining
Mark Learmonth
[phone]
[e-mail]
www.caledoniamining.com

OR

BuckBias
Alex Buck
[phone]

OR

Collins Stewart Europe Limited
John Prior/Sebastian Jones
[phone]

Caledonia Mining Corp