Caledonia Mining Corporation: Correction Announcement-Exercise of Options

TORONTO, ONTARIO -- (Marketwired) -- 04/16/13 -- The following amendment has been made to the Exercise of Options announcement released on 12 April 2013 at 07.30 under RNS No 1809C:

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                           No. shares held  No. shares held    Percentage of
Exercising                after completion after completion issued shares of
 Option                        of Exercise      of Exercise     Company held
 Holders &    No. Options          (before           (after after completion
 Positions      Exercised   consolidation)   consolidation)      of Exercise
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J.Johnstone       300,000          400,000           40,000             0.08
Director
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All other details remain unchanged.

The full amended text is shown below.

Caledonia Mining Corporation (TSX: CAL)(OTCQX: CALVF)(AIM: CMCL) (the "Company") received notice today that fourteen (14) holders of share purchase options have exercised options over an aggregate 4,117,300 unconsolidated ordinary shares in the Company ("Ordinary Shares"). The details of the options exercised by four (4) optionees who are Persons Disclosing Management Responsibility of the Company and their resultant number of shares held (both before and after the consolidation which takes effect on April 12, 2013) are as follows:

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                           No. shares held  No. shares held    Percentage of
Exercising                after completion after completion issued shares of
 Option                        of Exercise      of Exercise     Company held
 Holders &    No. Options          (before           (after after completion
 Positions      Exercised   consolidation)   consolidation)      of Exercise
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C.R. Jonsson    1,000,000        1,559,469          155,947             0.30
Director,
 Chairman
 and
 Secretary
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C. Harvey         400,000        1,604,300          160,430             0.31
Director
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J.Johnstone       300,000          400,000           40,000             0.08
Director
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M. Learmonth      447,300        1,367,300          136,730             0.26
VP, Business
 Development
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TOTAL:          2,147,300
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The other ten (10) persons who exercised options over 1,970,000 shares are employees of or service providers to the Company or its subsidiaries.

All of the options were exercised at an exercise price of Cdn$0.07 per share with the exception that 9,800 options exercised by Mark Learmonth which were at $0.09 per share.

Apart from the people listed above, none of the persons who have exercised options are Persons Disclosing Management Responsibility of the Company.

The Company has applied for the 4,117,300 new Ordinary Shares to be admitted to trading on AIM and admission is expected to take place on April 18, 2013. Following the completion of the share consolidation the optionees will receive 411,730 consolidated shares.

The foregoing refers to unconsolidated shares in the capital of the Company. The Company has announced, in its Release dated March 14, 2013, that its issued Ordinary Shares will be consolidated on the basis of 1 consolidated Ordinary Share for every 10 Ordinary Shares issued (the "Consolidation"). The Release has advised that, as a result of the Consolidation, the consolidated Ordinary Shares of the Company will commence trading on all of the markets upon which the Company's shares trade at the opening of trading on April 12, 2013.

Following this notification, the Company has 521,179,080 unconsolidated Ordinary Shares in issue.

Contacts:

Caledonia Mining Corporation

Mark Learmonth

+ 27 11 447 2499
marklearmonth@caledoniamining.com


Canaccord Genuity Limited

Andrew Chubb / Joe Weaving

+ 44 20 7523 8000


Newgate Threadneedle

Beth Harris / Adam Lloyd

+44 20 7653 9850


CHF Investor Relations

Jeremy Hill

+1 416 868 1079 x 238
jeremy@chfir.com