Caledonia Mining Announces Its First Quarter 20...

FOR:  CALEDONIA MINING CORPORATION

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

May 15, 2008

Caledonia Mining Announces Its First Quarter 2008 Results

TORONTO, ONTARIO--(Marketwire - May 15, 2008) - Caledonia Mining Corporation ("Caledonia")
(TSX:CAL)(OTCBB:CALVF)(AIM:CMCL) is pleased to announce its first quarter 2008 operating and financial results.

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

/T/

Financial Highlights
------------------------------------------------------------------------
(C$ 000's)                                         Q1 2008      Q1 2007
------------------------------------------------------------------------
Sales from continuing operations                    $2,504       $3,318
------------------------------------------------------------------------
Net income/(loss) from continuing operations          $791      ($3,907)
- per share basic and diluted                       $0.001      ($0.009)
------------------------------------------------------------------------
Discontinued operations (loss)                        ($70)       ($255)
Net income (loss) after discontinued
 operations                                           $721      ($4,162)
- per share basic and diluted                       $0.001      ($0.010)
------------------------------------------------------------------------

/T/

For the quarter ended March 31, 2008 Caledonia reported revenue of $2.5 million from the Blanket gold mine, on
sales of 2,809 ounces of gold and a net income of $721,000 or $0.001 per fully diluted share. Cash available at
the quarter end totaled $554,000.

Gold production for the quarter was 2,670 ounces and continues to be hampered by power shortages, lack of
foreign currency availability and the inability to complete the No.4 shaft expansion as planned.

In February 2008, 12,300,000 shares and an equal number of one-year warrants were issued at $0.15 per unit in a
private placement that raised $1,119,000 net of commissions. These funds are being used for general working
capital and the funding of exploration activities at Nama and other sites.

Commenting on the results, Stefan Hayden, President and CEO, said "During the quarter Caledonia's priority was
to continue to advance the Nama cobalt project in Zambia. Substantial progress was made with the signing of
four off-take agreements with large Chinese refiners, the recent publication of a NI 43-101 compliant report
for the resource body "D", and the commencement of a Chinese feasibility study, which is due for completion
during the third quarter. Environmental approval for a new access road and power line has been obtained and the
application for the conversion of the retention license into 25 year mining licenses has been submitted.

I am pleased to report that Blanket Mine management continues to produce gold in an extremely difficult
economic environment, albeit at a much lower rate than the designed capacity."

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 Corporation
Stefan Hayden
President & CEO
[phone]
Website: www.caledoniamining.com

OR

BuckBias
Alex Buck
[phone]

OR

RBC Capital Markets
Martin Eales
[phone]

Caledonia Mining Corporation