Caledonia Mining First Quarter 2010 Results

FOR:  CALEDONIA MINING CORPORATION

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

May 14, 2010

Caledonia Mining First Quarter 2010 Results

TORONTO, ONTARIO--(Marketwire - May 14, 2010) - Caledonia Mining Corporation ("Caledonia")
(TSX:CAL)(OTCBB:CALVF)(AIM:CMCL) is pleased to announce its first quarter 2010 operating and financial results.

The financial results below are reported in Canadian dollars, except where otherwise stated.

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Financial Highlights
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(C$ 000's)                                                  Q1 2010  Q1 2009
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Revenue                                                       4,490        -
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Net income/(loss) from continuing operations                    688    (799)
- per share basic and diluted                                 0.001  (0.002)
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Discontinued operations (loss)                                 (29)     (40)
Net income (loss) after discontinued operations                 659    (839)
- per share basic and diluted                                 0.001  (0.002)
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For the quarter ended March 31, 2010 Caledonia had net income from continuing operations of $0.688 million (2009,
a net loss of $0.799 million) or $0.001 per fully diluted share (2009, net loss of $0.002 per fully diluted
share). Revenue was $4.49 million on sales of 3,908 ounces of gold. (In the quarter ended March 31, 2009 Caledonia
had no revenues due to the suspension of gold production at Blanket Mine.) Cash available at the quarter end
totaled $2.65million.

Commenting on the results, Stefan Hayden, President and CEO, said: "Production during the quarter was adversely
affected by a substantial increase in the frequency and duration of electricity outages and by operational issues
arising from the historic delays in the completion of the No. 4 Shaft Expansion Project. Since the end of the
quarter, Blanket has accelerated its program to install standby electrical generating capacity and the first
2.5MVA unit is expected to be commissioned in early June. Surface and underground work on the No. 4 Shaft
Expansion Project continues and this project is expected to be completed as scheduled by the end of quarter three.
This will allow production to be progressively increased to the targeted annualised rate of 40,000 ounces of gold
per annum in quarter four. In May, Blanket has secured an increased debt facility which, in conjunction with
internally generated cash flows, will be used to fund the acquisition of the first standby generator and the
completion of the No. 4 Shaft Expansion Project."

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]

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Caledonia Mining Corp