Interim Results

Caledonia Mining Corporation
16 August 2007




           Caledonia Mining Announces its Second Quarter 2007 Results


Toronto, Ontario - August 15, 2007: Caledonia Mining Corporation ('Caledonia')
(TSX: CAL, NASDAQ-OTCBB: CALVF, AIM: CMCL) is pleased to announce its second
quarter and half year 2007 operating and financial results.

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

Financial Highlights

(C$ 000's)                          Q2 2007    Q2 2006    1H 2007    1H 2006
--------------------               --------   --------   --------   --------
Sales from continuing operations      1,539         (1)     4,858          -
Operating costs                       1,963        253      6,358        548
Gross (loss) from continuing
operations                             (424)      (254)    (1,500)      (548)
--------------------               --------   --------   --------   --------
Income/(Loss) after tax before
discontinued operations                 364     (3,397)    (3,545)    (3,784)
Net Income/(loss) for the period
after discontinued operations           238     (2,893)    (3,925)    (5,159)
Net Income/(loss) per share before
discontinued operations, basic and
fully diluted                        $0.001    ($0.009)   ($0.008)   ($0.010)
--------------------               --------   --------   --------   --------

For the quarter ended June 30, 2007 Caledonia reported revenues of $1.54 million
from the Blanket gold mine, on sales of 2,922 ounces of gold and a net income,
after tax before discontinued operations, of $0.4 million or $0.001 per fully
diluted share. For the half year, Caledonia's revenue was $4.86 million on sales
of 7,274 ounces of gold and a net loss, after tax before discontinued
operations, of $3.5 million or $0.008 per fully diluted share. Cash available at
the quarter end totaled $2.1 million.

During the quarter, two sets of warrants of 22,890,000 and 6,998,259 warrants
were exercised at a price of $0.15 per share for proceeds, net of commission, of
$4,380,233. These funds will be used for general working capital and the funding
of exploration activities at Nama.

Gold production for the quarter was 2,672 ounces and 6,337 ounces for the half
year. Production was affected by the planned shut down of No.4 shaft for
refurbishment, which is part of the planned expansion, and the lower than
anticipated grades from underground.

Commenting on the results, Stefan Hayden, President and CEO, said 'I am pleased
to report that the Blanket mine continued operations throughout the quarter,
despite the tough operating conditions in Zimbabwe, the cashflow issues faced by
other gold producers and the planned expansion.

Production of 2,672 ounces of gold was below the plan due to the lower than
anticipated grades from underground, however the metallurgical plant and the
Sands plant performed well. Underground production has since resumed and we are
targeting a return to 600 tonnes a day, depending on the reliability of power
supply.

Operating conditions continue to remain challenging in Zimbabwe, however if the
situation does not deteriorate further, we anticipate completing the shaft
expansion by the end of the fourth quarter and making-up a portion of the
reduced second quarter production during the second half of the year.

The drilling program at Nama continues, with drill cores currently being
assayed. These results will be evaluated during the third quarter and we
anticipate announcing further NI43-101 results by the fourth quarter.
Metallurgical testwork on product specification for a cobalt hydroxide is nearly
complete and we hope to announce these results before year-end as well.

Unfortunately we do not have any concrete updates on the sale negotiations of
the Barbrook and Eersteling mines, however we do continue to negotiate with a
number of interested parties. Clearly this sale process is taking a long time
and we are aiming to conclude a transaction by the end of the third quarter.'

Certain statements included herein are 'forward-looking statements'. Management
cautions that forward-looking statements are not guarantees and that actual
results 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.


Conference Call Details
A conference call is scheduled for Tuesday 21 August, 2007 at 10.00 hours (EST).
Conference ID: 436041#
UK Dial-in number: [phone]
UK Toll-free Dial-in number: 0800 358 2189
Canadian Toll-free Dial-in number: 1 866 270 8076
US Toll-free Dial-in number: 1 866 793 427
International Dial-in number: [phone]



For more information, please contact:

Stefan Hayden, President & CEO   Alex Buck                  Jonathan Wright
Caledonia Mining                 Buck-bias                  Seymour Pierce
Tel: [phone]             Tel: [phone] Tel: [phone]


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




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