Response to Press Comment

Caledonia Mining Corporation
25 April 2007


                          Caledonia Mining Corporation

    Caledonia's Blanket Mine Continues Uninterrupted Production and Expansion


Toronto, Ontario - April 25, 2007: Caledonia Mining Corporation ('Caledonia')
(TSX: CAL, NASDAQ-OTCBB: CALVF, AIM: CMCL) wishes to announce that production at
its Blanket Gold Mine in Zimbabwe continues uninterrupted. This is contrary to
reports in the press and electronic media that the Blanket Mine is one of the
Zimbabwean gold mines which has suspended production due to the non receipt of
payments for gold delivered and sold, as required by law, from the Zimbabwean
authorities. However, unless Blanket receives payment for gold already
delivered, and prompt payment for future gold deliveries, it will have to
suspend operations due to the lack of cash flow. The mine continues the ongoing
interactions with the Zimbabwean authorities who have given assurances that the
situation will be addressed shortly.

Blanket, having foreseen the cash flow problems of acquiring dry cyanide, has
completed the installation and commissioning of a 63m(3) liquid cyanide storage
facility. Blanket now enjoys the flexibility and considerable cost savings of
this portion of the expansion project. Based on present costs, this facility has
a payback of approximately 6 months.

Production at the Blanket Mine has however been reduced due to a combination of
late payments for gold delivered and for planned technical reasons. More
particularly, the No. 4 shaft - the main production shaft of the Blanket Mine -
has been temporarily closed in order to complete the shaft equipping which is
part of the previously announced work to expand production of the Blanket Mine
from the present rate of 25,000 ounces of gold per year to 40,000 ounces per
year. Underground production from No 4 shaft will resume at 600 tonnes per day
by the end of June 2007, and the shaft will then be equipped from the 585 metre
above mean sea level (AMSL) to the 302 metre AMSL level.

For more information, please contact:

Stefan Hayden                   Alex Buck / Nick Bias   Jeremy Porter
President and CEO                                       Seymour Pierce Limited
Caledonia Mining Corporation    BuckBias                AIM Nominated Advisor
Tel: [phone]            Tel: [phone]   Tel:[phone]

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

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.



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