Caledonia Mining Corporation (CMCL)

[NYBob]

Caledonia Mining 2011 Fourth Quarter and Annual Results and
Notification of Management Conference Call -


TORONTO, ONTARIO--(Marketwire - March 30, 2012) -

Caledonia Mining Corporation -
(the "Company") (TSX:CAL)(OTCQX:CALVF)(AIM:CMCL) is pleased
to announce its operating and financial results for
the fourth quarter 2011 ("Q4" or the "Quarter") and
the twelve months to December 31, 2011, which are reported
below in Canadian dollars unless otherwise indicated.

Operational Highlights for the Blanket Mine in Zimbabwe

Gold produced in Q4 was 10,533oz, an increase of 8.1% on
the 9,743oz produced in Q3 2011 (the "preceding quarter") and
a 69% increase on the 6,227oz produced in Q4 of 2010
(the "comparative quarter").

This was the seventh consecutive quarterly increase in
production.

Total 2011 gold production increased by 102% to 35,826oz,
(2010: 17,707oz).

Cash operating costs in Q4 substantially reduced to
US$521 per ounce of gold produced compared to
US$583 in the preceding quarter and
US$791 in the comparative quarter.

Cash costs for the full year were US$581 per ounce compared
to US$751 in 2010.

Financial Highlights

Turnover for the year increased to
$55,705,000 from $22,388,000 in 2010.

Gross profit for the year increased
by 358% to $29,115,000, (2010: $6,360,000).

Net profit after income taxes for 2011 was
$12,130,000 compared to $1,455,000 in 2010.

The 2011 net profit includes an impairment of
$3,884,000 in respect of the Rooipoort PGE asset because,
despite the timely application for the renewal of
the prospecting rights, no rights have been issued.

Adjusted basic earnings per share for 2011
(excluding the Rooipoort impairment and foreign exchange profit)
was 3.14 cents per share -
a fourteen-fold increase on 2010.

Cash and cash equivalents at December 31, 2011 of
$9,686,000 compared to $6,847,000 at September 30, 2011 and
$1,145,000 at December 31, 2010.

Cash flow from operations in 2011 before capital investment
was $17,428,000 (2010: $6,611,000).

During Q4 Blanket made payments in respect of direct and
indirect taxes, royalties, licence fees, levies and other
payments to the Government of Zimbabwe totalling
US$5,024,000 compared to US$3,847,000 in the preceding quarter, and
US$761,000 in the comparative quarter.

The total of such payments in 2011 was $13,614,000 (2010: $2,236,000).

Other Highlights

During 2011 Caledonia carried out a 5-hole diamond
drilling programme on its wholly owned
Nama copper/cobalt property in northern Zambia.

On March 12, 2012 Caledonia announced the summary of
the results of this 2011 exploration programme which
has identified a new mineralised zone with a weighted
average copper grade of 0.47%, a weighted average thickness of
41 metres and at a depth of 280 to 450 metres.

A sufficiently large resource at shallow depth could provide
the basis for a future open-pit mining operation.

A further exploration programme has now commenced
comprising 8,400 metres of drilling.

On February 20, 2012, Caledonia announced it had signed
a Memorandum of Understanding with the Minister of Youth,
Development, Indigenisation and Empowerment of the Government
of Zimbabwe pursuant to which Caledonia has agreed that
Indigenous Zimbabweans will acquire an effective 51% ownership
interest of the Blanket Mine for a paid transactional value
of US$30.09 million.

Commenting on Caledonia's performance, Stefan Hayden, President
and CEO, said:
"I am delighted to report that the fourth quarter of 2011
was the culmination of a highly successful year for
Caledonia, during which gold production at
the Blanket Mine in Zimbabwe more than doubled.

Production has now increased in each of the last seven quarters.
In the fourth quarter of
2011 10,533 ounces of gold were produced, which exceeded
our quarterly production target of 10,000 ounces.

In addition, the cash cost of production was significantly
reduced for the year as a whole to
US$581/oz,
compared to US$751/oz in 2010.

In the fourth quarter alone, the cash cost of production
was further lowered to
US$521/oz.

This reduction, which is in line with our earlier guidance,
was due to improved operating efficiency and the benefits
of economies of scale.

I believe that Blanket Mine is now one of the most efficient and
lowest cost gold producers in Africa.

In February 2012, Caledonia signed a MoU with the Government
of Zimbabwe regarding the indigenisation of the Blanket Mine.
We are working hard on the various transactions envisaged in
this MoU which we hope will be implemented during
the second quarter of 2012.

At the Caledonia level, the strong operating performance from
Blanket was diluted by the cost of extracting dividends from
Zimbabwe.

Elsewhere, at the Nama base metals project in Zambia,
the 2011 exploration programme identified an exciting
new copper-bearing mineralised zone.
Further exploration on the identified mineralised zone has
commenced.
The costs of these drilling programmes will be
fully funded from current cash resources.

Looking forward, once indigenisation has been implemented,
Blanket will be financially and strategically well-positioned
to progress its exploration and development projects.

Depending on the outcome of these projects,
Blanket may, in due course, be able to increase production
above 40,000 ounces of gold per annum.

The Blanket crushing and metallurgical plant has surplus
capacity and any incremental ore could be treated
without any requirement for new investment.

I am also hopeful that the further exploration work at
Nama will indicate the potential existence of a
significant copper deposit."

The full Report & Accounts, including the notes and
Management Discussion and Analysis,
for the year ended 31 December 2011 will be posted to holders
of Caledonia's AIM securities during the week
commencing 2 April 2012 and are available from the
Company's website
http://www.caledoniamining.com
and from SEDAR."

Caledonia management will host a conference call starting
at 10.00 (EDT) - 15.00 (GMT+1) on
April 2, 2012.
Please dial-in 10 minutes beforehand and quote Caledonia as
the conference call password.

Canada Toll Free number* [phone]

UK Toll Free number* 0808 109 0700

USA Toll Free number* [phone]

Standard International Access number [phone]

*If you are calling from a mobile phone your provider may
charge you when connected to the toll-free numbers.

Further information regarding Caledonia's exploration
activities and operations along with its latest financials and
Management Discussion and Analysis may be found at
http://www.caledoniamining.com

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