Caledonia Mining Secures a Renewed Zimbabwe Gol...

FOR:  CALEDONIA MINING CORPORATION

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

December 21, 2009

Caledonia Mining Secures a Renewed Zimbabwe Gold Dealership License

TORONTO, ONTARIO--(Marketwire - Dec. 21, 2009) - Caledonia Mining Corporation ("Caledonia")
(TSX:CAL)(OTCBB:CALVF)(AIM:CMCL) is pleased to announce its wholly owned subsidiary, Blanket Mine
("Blanket") has received a renewed Gold Dealership License which enables it to continue exporting gold
directly to a refiner of its choice.

Zimbabwean gold producers wishing to export gold directly require a Gold Dealership License issued by
the Ministry of Finance, which entitles a gold producer like Blanket to export and market its gold
bullion to a refiner of its choice at world prices. The proceeds from the sale of gold must be paid
directly into the exporter's foreign currency account at a Zimbabwean commercial bank and the producer
is allowed to retain 100% of the proceeds, less a royalty of 3.5%.

Blanket's current Gold Dealership License expires on 31 December 2009 and Blanket has now obtained a
renewed Gold Dealership License for a further twelve months with effect from 1 January 2010.

Blanket and Caledonia had proposed to the Ministry of Finance that the duration of Gold Dealership
Licenses be extended beyond the existing 12-month term to facilitate the raising of debt with a term
longer than 12 months. While the Ministry of Finance appears to recognize the necessity of this
requirement, extensive administrative processes are apparently involved and the Ministry has stated
that it is unable to issue a longer License prior to the expiry of the existing License. Caledonia and
Blanket hope that future Gold Dealership Licenses will be issued for considerably longer periods than
12 months.

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]
www.caledoniamining.com

OR

BuckBias
Alex Buck
[phone]

OR

RBC Capital Markets
Martin Eales
[phone]

Caledonia Mining Corp