Caledonia Mining Corporation: Grant of Incentiv...

FOR:  CALEDONIA MINING CORPORATION

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

February 1, 2011

Caledonia Mining Corporation: Grant of Incentive Options

TORONTO, ONTARIO--(Marketwire - Feb. 1, 2011) - Caledonia Mining Corporation ("Caledonia" or "the Company")
(TSX:CAL)(OTCBB:CALVF)(AIM:CMCL) reports that pursuant to its Stock Option Plan as approved by the Toronto
Stock Exchange, on January 31, 2011 the Board granted 16,460,000 stock options as an incentive to directors,
officers and employees of the Company at an exercise price of $0.13 per Caledonia common share expiring on
January 31, 2016.

The share options granted to directors are as follows:

Director       Share options
S E Hayden     3,000,000
S R Curtis     2,500,000
C Jonsson      1,600,000
J Johnstone    1,600,000
B Babensee     1,750,000
C Harvey       1,600,000

On January 9, 2011, the 6,500,000 options previously granted expired unexercised. Following this and the grant
of the above options, the share capital of the Company now comprises 500,169,280 common shares with voting
rights, plus 42,540,000 options over common shares.

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]
[e-mail]

OR

BuckBias
Alex Buck
[phone]

OR

Collins Stewart Europe Limited
John Prior/Sebastian Jones
[phone]

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Caledonia Mining Corp