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Wednesday 01 July, 2009

Caledonia Mining

Mitsubishi Corporation Withdraws from Proposed ...



FOR:  CALEDONIA MINING CORPORATION

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

July 1, 2009

Mitsubishi Corporation Withdraws from Proposed Participation in the Rooipoort and Mapochsgronde Platinum
Projects in South Africa

TORONTO, ONTARIO--(Marketwire - July 1, 2009) - Caledonia Mining Corporation ("Caledonia")
(TSX:CAL)(OTCBB:CALVF)(AIM:CMCL) announces that Mitsubishi Corporation  has indicated it does not wish to
extend the Agreement relating to a proposed participation by Mitsubishi in the Rooipoort and Mapochsgronde
platinum exploration projects ("the Projects") in South Africa.  Accordingly, the Agreement terminated June 30,
2009 and Mitsubishi will not provide the envisaged exploration funding for the Projects.  The Rooipoort and
Mapochsgronde properties will continue to remain 100% owned by Caledonia.

Mitsubishi concluded that the conditions precedent relating to security of tenure of the prospecting rights
held by Caledonia and its subsidiaries due to the Broad Based Black Economic Empowerment ("empowerment")
requirements imposed by the South Africa Department of Minerals ('DM") do not meet their requirements.  The
DM's requirement that empowerment must be introduced at the exploration stage is not currently required under
South Africa law and, accordingly, was not envisaged at this stage in the Agreement.

Caledonia will explore and evaluate other strategic options in respect of the Projects.

Caledonia expects to release its results for the half year to June 30, 2009 on or about August 14.  A
management conference call will be arranged shortly thereafter for a time and date to be advised.

For more information, please visit: www.caledoniamining.com.

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FOR FURTHER INFORMATION PLEASE CONTACT:

Caledonia Mining Corporation
Mark Learmonth
VP Corporate Development and Investor Relations
+27 11 447 2499
marklearmonth@caledoniamining.com

OR

BuckBias
Alex Buck
+44 7932 740 452
www.caledoniamining.com

OR

RBC Capital Markets
Martin Eales
+44 20 7029 7881

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Caledonia Mining Corp								

						

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