Caledonia Mining Announces Third Quarter 2010 R...

FOR:  CALEDONIA MINING CORPORATION

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

November 12, 2010

Caledonia Mining Announces Third Quarter 2010 Results

TORONTO, ONTARIO--(Marketwire - Nov. 12, 2010) - Caledonia Mining Corporation ("Caledonia")
(TSX:CAL)(OTCBB:CALVF)(AIM:CMCL) is pleased to announce its third quarter 2010 operating and financial results.
These are available on the Company's website www.caledoniamining.com and are also filed on www.sedar.com. The
financial results below are reported in thousands of Canadian dollars, except where otherwise stated.

Financial highlights for the Quarter and the nine months ended September 30

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                                         -----------------------------------
                                             Three months       Nine months
                                                    ended             ended
                                             September 30      September 30
----------------------------------------------------------------------------
(C$ 000's)                                   2010    2009     2010     2009
----------------------------------------------------------------------------
Sales from continuing operations            6,331   4,932   14,975    7,295
Operating costs                             3,453   3,130    9,598    5,700
                                         -----------------------------------
Gross profit from continuing operations     2,878   1,802    5,377    1,595
General & Administrative expenses             869     499    1,825    1,644
Other costs                                   337     441      869       51
                                         -----------------------------------
Profit/(loss) after tax before
 discontinued operations                    1,671     862    2,680     (100)

Net profit/(loss) for the period after
 discontinued operations                    1,647     826    2,600     (213)
Net profit/(loss) per share before
 discontinued operations, basic and fully
 diluted                                   $0.003  $0.002   $0.005 ($0.0002)
----------------------------------------------------------------------------

/T/

For the quarter ended September 30, 2010 Caledonia generated revenue of $6.331 million from the sale of 4,934
ounces of gold at an average sale price of US$1,241 per ounce and a cash cost of US$651 per ounce, realizing a
gross profit of $2.878 million and a net profit of $1.647 million.

Commenting on the quarter's performance, Stefan Hayden, President and CEO said: "I am pleased to report that
gold production at the Blanket mine was 45% higher than in the previous quarter. This was an outstanding and
highly commendable performance by the Blanket and Caledonia management teams. This increase in production was
also due to the implementation of a revised mine plan, improved recoveries from the metallurgical plant and the
installation of the first standby generator in late June. The generator has allowed underground operations to
continue during interruptions to the normal electricity supply.

Blanket's cash costs decreased significantly from US$816 per ounce in the second quarter to US$651 per ounce in
the third quarter. We expect that Blanket's cash costs will continue to decrease as production increases to an
annualized level of approximately 40,000 ounces of gold per annum by the end of 2010, following the
commissioning of the No. 4 Shaft Expansion Project at the end of third quarter.

Provided a satisfactory investment climate is created in Zimbabwe and the Zimbabwean indigenization
requirements and obligations are finally clarified and economically viable, Caledonia intends to make the
significant capital investments in Blanket, which are required to sustain gold production at 40,000 ounces per
annum.

At the Nama base metals exploration project in Zambia, the ongoing field work supports our current
understanding of the geological structure and the possible continuation into the Nama Project area of the
Copperbelt style mineralization that exists on neighboring properties. Tenders have been called for an initial
multi-hole, deep-level diamond drilling program to explore for Copperbelt style mineralization. This program is
expected to commence in 2011 as soon as the ground conditions permit after the rainy season.

Discussions with the South African Department of Mineral Resources continue regarding the extension of the
period of the exploration plan previously submitted in respect of the Company's exploration projects at
Rooipoort and Mapochsgronde."

Further information is included in this quarter's MD&A which is available on the Company's website
www.caledoniamining.com and is also filed on www.sedar.com.

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]
[e-mail]
www.caledoniamining.com

OR

BuckBias
Alex Buck
[phone]

OR

RBC Capital Markets
Martin Eales
[phone]

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Caledonia Mining Corp