Caledonia Commissions the First Standby Generat...

FOR:  CALEDONIA MINING CORPORATION

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

June 14, 2010

Caledonia Commissions the First Standby Generator at Blanket Gold Mine in Zimbabwe

TORONTO, ONTARIO--(Marketwire - June 14, 2010) - Caledonia Mining Corporation ("Caledonia")
(TSX:CAL)(NASDAQ:CALVF)(OTCBB:CALVF)(AIM:CMCL) is pleased to announce the installation and commissioning on
schedule of the first of several planned 2.5MVA diesel generators at the Blanket Gold Mine in Zimbabwe.

Blanket currently relies exclusively on the Zimbabwe Electricity Supply Authority 33kV electricity supply to
run all of its operations. The continuity of electricity supplies to the mine has deteriorated significantly
over the past few months: the average daily power outages have increased from approximately five hours per day
in February to over nine hours per day in May. The increased frequency, coupled with the unpredictabilty and
duration of power outages has an adverse effect both on gold production and on the underground installations
essential for the completion of the No. 4 Shaft Expansion Project.

In light of the rapid deterioration in electricity supply, Caledonia decided in early May to accelerate
Blanket's program to install standby diesel generating capacity. The first standby generator has now been
installed and commissioned and will enable continuous operation of the mining operations and of the equipment
installation activities which are necessary to complete the No. 4 Shaft Expansion. Blanket has sufficient
surplus milling capacity to achieve its current production target if power outages continue to be experienced
at the current level.

Blanket plans to install additional diesel generating capacity after completion of the No. 4 Shaft Project in
order to provide sufficient standby generating capacity to maintain its increased production target of 40,000
ounces of gold per annum even if electricity outages continue to be experienced at the current level or
deteriorate further. Blanket's plans in this regard will remain under constant review as circumstances relating
to electricity supply change.

The cost of the first standby generator has been met out of Blanket's existing US$2.5 million debt facility.

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

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FOR FURTHER INFORMATION PLEASE CONTACT:

Caledonia Mining
Mark Learmonth
[phone]

OR

BuckBias
Alex Buck
[phone]

OR

RBC Capital Markets
Martin Eales
[phone]

Caledonia Mining Corp