Caledonia Min Regulatory News (CMCL)

Caledonia Mining Corporation

("Caledonia" or the "Company")

Analyst Site Visit

December 1, 2015: Last week Caledonia held an analyst site visit at their Blanket Gold Mine in Zimbabwe. The visit was aimed at showing analysts how the revised mine plan, announced on 3 November 2014, was progressing.

The new central shaft has almost completed its pre-sinking stage and is planned to reach a depth of 1,080 metres; the Company hopes that this shaft will be fully operational by mid-2018. The new shaft will be much larger and more efficient than the existing main production shaft and will provide access to existing resources below 750 metres, where drilling is currently progressing well with the objective of upgrading the confidence level of existing resources and also identifying additional resources. The new shaft will also address Blanket's current single shaft status.

On the 750 metre level, the new Tramming Loop, which was completed in June 2015, is now fully operational and allows the transport of substantially more material. The benefits of the Tramming Loop are already apparent: in Q3 of 2015 approximately 120,000 tonnes of ore were mined, representing a new production record from underground operations. This level of production could not have been achieved before completion of the Tramming Loop. In addition to the increased mine production, the analysts also saw how the completed Tramming Loop has allowed for an increased rate of development, which should improve mining flexibility.

Production is on track to commence from the newly constructed No.6 Winze in Q1 2016, ramping up to 500 tonnes per day by the end of 2017. This early production from below 750 metres via the No. 6 Winze, before the Central Shaft is completed in 2018, will contribute to the anticipated increase in production from 42,000 ounces in 2015, to 50,000 ounces in 2016 and 65,000 ounces in 2017.

Caledonia has built and continues to maintain the employee village which is immediately adjacent to the mine and metallurgical plant and houses the majority of Blanket's 1,150 workers and their families. The mine village appears to be of a high quality and provides a very stable living environment. The mine village has schools, shops and medical and recreational facilities. There is almost no turnover amongst the employees, who are paid approximately 15 per cent above the national average wage which is agreed between the Chamber of Mines and the mining unions. In addition, following the successful implementation of indigenisation, Blanket's employees also own 10 per cent of the Blanket mine.

This announcement contains no new information of a price-sensitive nature