Caledonia Mining Announces the Imminent Resumpt...

FOR:  CALEDONIA MINING CORPORATION

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

April 3, 2009

Caledonia Mining Announces the Imminent Resumption of Gold Mining at the Blanket Gold Mine in Zimbabwe

TORONTO, ONTARIO--(Marketwire - April 3, 2009) - Caledonia Mining Corporation ("Caledonia")
(TSX:CAL)(OTCBB:CALVF)(AIM:CMCL) is pleased to announce the imminent resumption of gold mining
operations at the Blanket Gold Mine ("Blanket") in Zimbabwe.

As stated in the Management Discussion and Analysis for the year ended December 31, 2008, issued on
April 1, 2009, Blanket had applied for the necessary permissions and licenses, following the recent
changes to the regulations governing gold trading in Zimbabwe that would enable it to re-commence gold
production. Caledonia is pleased to announce that Blanket has today received these necessary licenses,
being a Gold Dealer's License from the Ministry of Finance and a Gold Exporter's License from the
Reserve Bank of Zimbabwe.

These licenses entitle Blanket to comply with the gold dealing and gold export regulations and to
export and market its gold bullion to a refiner of its choice. The proceeds from the sale of gold will
be paid directly into Blanket's foreign currency account ("FCA") at a Zimbabwean commercial bank and
Blanket will be entitled to retain 100% of the proceeds indefinitely in the FCA. Blanket has already
opened the necessary account with a major precious metals refiner and once Blanket has successfully
completed its first delivery to the refinery, a further press release will be issued.

Caledonia has ensured that the detailed planning to return Blanket to production as soon as possible
has been completed. Blanket has secured an initial working capital facility and expects to resume
production once it has taken delivery of the required consumables and spares, which have now been
ordered for immediate delivery.

Blanket's ability to achieve the planned production rates and complete the No 4 Shaft Expansion
Project to increase production to 40,000 oz per annum depends on the availability of further debt
facilities and the rate of internally-generated cash flow. Caledonia continues discussions with
several financial institutions regarding the raising of additional capital. The ability to raise
additional capital and to generate internal cash flows depends on the efficient and sustained
implementation of the current arrangements for Zimbabwean gold exporters.

Commenting on these developments, Stefan Hayden, President and Chief Executive Officer of Caledonia
said: "The re-commencement of gold production at Blanket is a very positive development for Caledonia.
Blanket has managed to retain the bulk of its skilled workforce since it was forced to temporarily
suspend operations in October 2008 and accordingly is in a good position to recommence production
rapidly. Provided a stable operating and monetary environment is maintained in Zimbabwe, it is
expected that Blanket will realise its potential as a 40,000 oz per annum producer in 2010.

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]
www.caledoniamining.com

OR

BuckBias
Alex Buck
[phone]

OR

RBC Capital Markets
Martin Eales
[phone]

Caledonia Mining Corp