Joint Venture Update

13 Sep 2005 15:00

Caledonia Mining Corporation13 September 2005 Caledonia Mining Corporation Caledonia and Motapa announce 11 drill targets at Mulonga Plain Kashiji Plain analytical results confirm possible local source Toronto, Ontario and Vancouver, British Columbia - September 13, 2005: CaledoniaMining Corporation (TSX: CAL, NASDAQ: CALVF, AIM: CMCL) and Motapa Diamonds Inc.(TSX-V: MTP) today announce developments at their joint venture diamondprojects, Mulonga Plain and Kashiji Plain, in Zambia. Mulonga Plain At Mulonga Plain, 11 targets have been identified for the drilling program whichwill start this month. Motapa, as the Project Manager, has defined an extensive(120 x 15 kilometres) high-abundance kimberlitic indicator mineral anomaly thatincludes mantle-derived ilmenite, garnet (including approximately 10%diamond-associated G10 varieties), chrome diopside, chromite and diamond withinthe Mulonga Plain. The drill program will concentrate on the eastern portion ofthis indicator mineral anomaly over which airborne gravity was flown at the endof last year. The targets to be tested include both gravity and magneticanomalies. The Mulonga Plain project area covers more than 1.9 million hectares. Motapa hasbudgeted over US$500,000 in the current fiscal year to advance this project. TheMulonga Plain exploration program is conducted under the direction of Dr. LarryOtt, a Qualified Person under NI 43-101. Kashiji Plain The analytical results from the 2004 sampling program re-confirm the possibilityof local sources for the Chunda Falls and the South-east ilmenite and diamondanomalies on the Kashiji Plain project area in north western Zambia. However, asthe results do not provide further constraints on the source area, additionalsampling and geophysical work will be required to further advance the project toa drill stage and Motapa is considering various alternatives to implement thiswork. The Kashiji Plain project area covers approximately 1.4 million hectares. Motapa and Caledonia are joint venture partners on both the Mulonga Plain andKashiji Plain projects. The current participating interests are Motapa 60% andCaledonia 40% at both projects. Motapa is the project operator and has rights toearn a 75% interest by funding Caledonia's share (as a recoverable loan undercertain conditions) to completion of a feasibility study. About Motapa: Motapa is among the leading diamond explorers in Africa and has interests inapproximately 13 million hectares of diamond prospective properties located inNamibia, Zambia, Botswana, Gabon and Mozambique. Motapa will spend over US$3m inthe current fiscal year to advance these projects. Motapa's Chairman, Dr. JohnJ. Gurney, is one of the world's leading authorities in the field of geochemicalexploration for diamondiferous kimberlites and has been associated withsuccessful diamond exploration programs around the world, including thediscovery of the kimberlites that comprise the EkatiTM diamond mine. Furtherinformation regarding Motapa may be found at www.motapadiamonds.com. About Caledonia: Caledonia is an exploration, development and mining company with a diversifiedportfolio of projects in Canada, South Africa and Zambia. Caledonia is followingthe strategy of diversification through its current production of gold in SouthAfrica and its exploration activities for gold, platinum, diamonds and cobalt.Caledonia is listed on the Toronto Stock Exchange, NASDAQ and London's AIMmarket. Further information regarding Caledonia's exploration activities andoperations along with its latest financials may be found atwww.caledoniamining.com. For more information, please contact: Caledonia Mining Motapa DiamondsStefan Hayden Larry OttPresident and CEO Chief Executive OfficerTel: +27 11 447 2499 Tel: +1 604 980 6770 This information is provided by RNS The company news service from the London Stock Exchange