Caledonia Files New NI 43-101 Report on Blanket...

FOR:  CALEDONIA MINING CORPORATION

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

July 5, 2011

Caledonia Files New NI 43-101 Report on Blanket Mine

TORONTO, ONTARIO--(Marketwire - July 5, 2011) - Caledonia Mining Corporation ("Caledonia")
(TSX:CAL)(OTCBB:CALVF)(AIM:CMCL) has received a new Technical Report, compliant with Canadian Securities
National Instrument 43-101, on its Blanket Mine in Zimbabwe. The Report, dated June 28, 2011, by Johannesburg
based independent geological consultants, The MSA Group, was commissioned in order to obtain a current
independent verification of the Blanket Mine's reserves and resources in compliance with Caledonia's reporting
requirements. The Report summarises the Reserve and Resource information based on a gold price of US$ 1,100.00
per ounce, as at December 31, 2010 as follows:

Mineral Resources

Resources are reported exclusive of Reserves.

----------------------------------------------------------------------------
                                                   grade
Classification                tonnes            (Au g/t)           Au ounces
----------------------------------------------------------------------------
Indicated                    510,000                3.79              62,100
----------------------------------------------------------------------------
Inferred                   2,408,000                5.27                (ii)
----------------------------------------------------------------------------
Note(ii) Quantities of metals are not reported for Inferred Resources

Mineral Reserves

----------------------------------------------------------------------------
                                                   grade
Classification                tonnes            (Au g/t)           Au ounces
----------------------------------------------------------------------------
Proven                     1,326,000                4.02             171,400
----------------------------------------------------------------------------
Probable                   2,514,000                3.66             295,800
----------------------------------------------------------------------------
TOTAL                      3,840,000                3.78             467,200
----------------------------------------------------------------------------

Dr. Trevor Pearton, the company's Vice President, Exploration, who is a Fellow of the Geological Society of
South Africa and is Caledonia's qualified person for Blanket Mine, has reviewed and approved the contents of
this news release.

The Report, entitled "Technical Report on the Blanket Gold Mine, Zimbabwe" can be viewed on the Company's
website or in SEDAR at www.sedar.com.

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]

OR

BuckBias
Alex Buck
[phone]

OR

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

OR

Renmark Financial Communications Inc
John Boidman/Dustin Buenaventura
514 939 3989 or 416 644 2020
[e-mail]
[e-mail]
www.renmarkfinancial.com

Caledonia Mining Corp