Resignation of Chairman

FOR:  CALEDONIA MINING CORP

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

December 10, 2010

Resignation of Chairman

TORONTO, ONTARIO--(Marketwire - Dec. 10, 2010) - Caledonia Mining Corporation ("Caledonia")
(TSX:CAL)(OTCBB:CALVF)(AIM:CMCL) announces the resignation of Mr. Rupert Pardoe as a Director and
Chairman of Caledonia, effective immediately.

Caledonia notes the allegations made by Mr Pardoe relating to violations of corporate governance and
unethical behaviour which the Board believes are baseless and will be defended vigorously.

Mr Carl Jonsson has been appointed as interim Chairman pending the appointment of a new permanent
Chairman. Mr Jonsson has been a long-time Director of Caledonia and is Corporate Secretary of
Caledonia. He is a senior Canadian corporate securities lawyer whose practice has had considerable
experience advising mineral exploration companies.

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

-30-

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]

-0-

Caledonia Mining Corp