Caledonia Mining Corporation (CMCL)

[NYBob]

Caledonia Announces Dividend Policy



TORONTO, ONTARIO--(Marketwired - Nov. 25, 2013) -

Caledonia Mining Corporation
("Caledonia" or the "Company") (TSX:CAL)(OTCQX:CALVF)(AIM:CMCL)
is pleased to announce that as part of the Company's long term
strategy to maximize shareholder value, the board of directors
has approved the implementation of a new quarterly dividend
policy (the "Dividend Policy").

In 2014, the company intends to pay an annual aggregate dividend
of 6 Canadian cents per common share, payable on a quarterly
basis.

The first quarterly dividend of 1.5 Canadian cents per common
share is expected to be declared in January 2014.

The Caledonia Board will continue to review dividends which will
depend on the performance of the company and its capital
investment requirements.

About Caledonia Mining

Caledonia is a mining, exploration and development company
focused on Southern Africa.
Following the implementation of indigenisation in Zimbabwe,
Caledonia's primary asset is a 49% interest in an operating
gold mine in Zimbabwe ("Blanket").
Caledonia's shares are listed in Canada on the Toronto Stock
Exchange as "CAL", on London's AIM as "CMCL" and are also
traded on the American OTCQX as "CALVF".

Caledonia is debt-free and at September 30, 2013
had gross cash of over $25 million outside Zimbabwe.
Blanket mine is a low-cost producer: in the quarter to
September 30, 2013,

Blanket's on-mine costs were US$554 per ounce of gold
produced, its all-in sustaining cost was US$873 per ounce of
gold and its all-in cost (which includes the investment in
expansion projects) was US$999 per ounce.

Investment continues at Blanket with the objective of increasing
production to 48,000 ounces of gold in 2014 and 52,000 ounces
of gold in 2015.

Blanket also continues to make substantial investments in its
exploration and development projects as a result of which gold
production may, in due course, increase
above 52,000 ounces per annum.

Cautionary Note Concerning Forward-Looking Information

Information and statements contained in this news release that are not historical facts are "forward-looking information" --
--fluctuations in commodity prices, delays in the development
of projects and other factors.

Potential shareholders and prospective investors should be aware
that these statements are subject to --
--is no guarantee that Caledonia will maintain
the Dividend Policy.

http://www.caledoniamining.com

Caledonia Mining Corporation
Mark Learmonth
[phone]
[e-mail]

Numis
John Prior/Jamie Loughborough/James Black
[phone]

Newgate Threadneedle
Graham Herring/Adam Lloyd
[phone]

WH Ireland
Adrian Hadden/Nick Field
[phone]

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=94241546

http://investorshub.advfn.com/Caledonia-Mining-Corporation-CALVF-5294/
God Bless