Issue of Equity etc.

Caledonia Mining Corporation
04 August 2006


                          Caledonia Mining Corporation

  Caledonia Announces Release Date of 2nd Quarter Results & Conference Call and
                          Completes Private Placement
                                        
Toronto, Ontario - August 4th 2006: Caledonia Mining Corporation ('Caledonia')
(TSX: CAL, NASDAQ-OTCBB: CALVF, AIM: CMCL) is pleased to announce the completion
of a $2,380,000 private placement financing.

The placement, which was handled by a commission agent in Europe, was for
17,000,000 units priced at $0.14 each. Each unit consists of one common share
and one share purchase warrant. Each warrant entitles the holder to purchase one
common share of Caledonia at a price of $0.16 for a period of 12 months from the
date of issue.

The funds raised will be used, after payment of commissions, to fund the
operations and exploration activities of the Corporation and for general
corporate purposes.

Caledonia will apply to AIM for the 17,000,000 new common shares to be admitted
to trading on AIM and admission is expected to take place on 10 August 2006.

Caledonia will release its second quarter results on Monday August 14th and on
Tuesday Aug 15th Stefan Hayden, Caledonia's CEO and President will host a
conference call at 10.30 am (Toronto time) to discuss the second quarter
results.

To participate in this conference call please dial at least 5 minutes before the
call and quote 'Caledonia Mining Corporation Second Quarter Results'

North American toll free      866-365-1119
South Africa toll free        800-2288-7000
Switzerland toll free         800-2288-7000

International toll number     1-416-849-7329

Local (Toronto Area)          416-849-7329

A replay facility will be available for two weeks until 29th August 2006 at:

North American toll free 1-866-501-5559 Passcode: 21183406#

A recording of the call will be available on the Caledonia website:
www.caledoniamining.com from 3.00 pm (EST) on October 16th

Further information regarding Caledonia's exploration activities and operations
along with its latest financials may be found at www.caledoniamining.com.

For more information, please contact:

Stefan Hayden                                     Alex Buck / Nick Bias
President and CEO, Caledonia Mining               buck-bias
Tel: [phone]                              Tel: [phone]

Certain statements included herein are 'forward-looking statements'.  Management
cautions that forward-looking statements are not guarantees and that actual
result could differ materially from those expressed or implied in the
forward-looking statements.  Important factors that could cause the actual
results of operations, exploration or development programs, or the financial
condition of the Company, to differ include, but are not necessarily limited to,
the risks and uncertainties discussed in documents filed by the Company with the
various regulatory authorities having jurisdiction.



                      This information is provided by RNS
            The company news service from the London Stock Exchange