Nickel & Cobalt

[NYBob]

Caledonia - CALVF 4QR Net Income $3,840,000.00 Millions -

CALEDONIA MINING CORP - Blanket Gold Mine -


TORONTO, ONTARIO--(CCNMatthews - April 2, 2007) -

Caledonia Mining Corporation -
("Caledonia") (TSX:CAL)(OTCBB:CALVF)(AIM:CMCL) is pleased to announce
its fourth quarter and 2006 annual operating and financial results.

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

Financial Highlights -

-----------------------------------------------------------------------
Q4 '06 Q4 '05 2006 2005
-----------------------------------------------------------------------
Total Revenue 9,200 453 16,559 2,642
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Revenue - continuing operations 9,045 4 13,586 6
-----------------------------------------------------------------------
Operating costs - continuing 5,951 587 8,661 757
operations
-----------------------------------------------------------------------
Gross Income(loss) - continuing 3,094 (583) 4,925 (751)
operations
-----------------------------------------------------------------------
Net Income(loss) - continuing 3,840 (313) 2,315 (3,748)
operations
-----------------------------------------------------------------------
(Loss) - discontinued operations (1,282) (1,741) (7,990) (5,932)
-----------------------------------------------------------------------
Net Income(loss) for the period 2,558 (2,054) (5,675) (9,680)
-----------------------------------------------------------------------
Net Income(loss) per share (basic &
fully diluted) - continuing
operations $0.008 ($0.001) $0.005 ($0.012)
-----------------------------------------------------------------------
Net Income (loss) per share (basic $0.006 ($0.006) ($0.013) ($0.031)
& fully diluted)
-----------------------------------------------------------------------
Cash in continuing operations 1,252 2,004 1,252 2,004
-----------------------------------------------------------------------
Total Assets 31,456 22,338 31,456 22,338
-----------------------------------------------------------------------


For the year ended December 31, 2006,
Caledonia recorded a gross income from continuing operations
of $4.9 million, revenues of $13.6 million,
and a net income after tax of $2,3 million.

Included in the income is a foreign exchange gain of
$0.1 million.

Cash available at year end totaled $1.252
million (from continuing operations).

During 2006, $7.55 million was raised from private placements
and the exercise of warrants, of which $3.5million was invested
in Capital assets and mineral properties, mainly in South Africa.

Commenting on the results, Stefan Hayden, President and CEO, said
"I am pleased to report a significant increase in our net income,
after tax.
Our fourth quarter was particularly strong, with net income of
$3.8 million, or $0.008 per basic and fully diluted share,
from revenues of $9.2 million, demonstrating a
healthy 41% profit margin.

The stronger financial performance this year is due to
the acquisition of the Blanket Mine in June 2006.

Blanket Gold Mines -
produced 12,437 ounces of Gold for the period of July
to December 2006.

We are busy with the expansion project to No.4 shaft
and the mill, which we anticipate will be completed
during the fourth quarter 2007,
which has been designed to increase Blanket's gold production
from 25,000 to 40,000 ounces a year.

As we have mentioned before, our other gold assets,
the Barbrook and Eersteling mines are on care and maintenance,
and the short listed purchasers are now proceeding
with their respective due diligence exercises.

Our focus during 2007 will be the completion of
the Blanket expansion,
and rapidly progressing our
Nama Cobalt/Copper project
after the completion of the metallurgical test work
currently underway."

The Annual Report including the MD&A for 2006
will be available on SEDAR and on the Caledonia website
at www.caledoniamining.com on April 2, 2007.

The conference call is scheduled for Wednesday April 4, 2007
at 10:30 hours (EST)
Conference ID: 9535356
Dial-in number: 416-343-4294 (local)
Toll-free Dial-in number: 800-9011-2810 (International)
Toll-free Dial-in number: 1-866-862-7809 (Canada/US)


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


FOR FURTHER INFORMATION PLEASE CONTACT:

Caledonia Mining
Stefan Hayden
President & CEO
[phone]


Website:
www.caledoniamining.com

buck-bias
Alex Buck/Nick Bias
[phone]


http://app.quotemedia.com/quotetools/popups/story.jsp
----

RE: Nama Cobalt / Copper project -

Well, 53 million pounds of cobalt at $32.00 per pound -

Equals $1,696,000,000.00 Billion Gross Revenue -

Plus Copper & PM's Gold values etc. -

Caledonia Mining - CALVF / T.CAL -

from shallow drilling and exploration -
to only 200m deth -
its remain open to depth -
and other directions -
http://app.quotemedia.com/quotetools/popups/story.jsp

it is also 11 more large anomalies on the large property -
with no exploration yet -
with similar potential -
to the above anomalies -
an with more follow-up drilling -
and geological field programs -

it may very well become the largest Cobalt deposit -
in the world -
as the CALVF CEO stated -

this is a very large mining property -
within one of the richest copper belts -
in the world -



http://www.caledoniamining.com/nam1.php

http://www.investorshub.com/boards/board.asp?board_id=5294

http://www.siliconinvestor.com/readmsg.aspx?msgid=23423965

http://www.caledoniamining.com/index.php
From another CALVF forum.