Major Shareholder Notification

Major Shareholder Notification

Toronto, Ontario - November 15, 2011: Caledonia Mining Corporation (the "Company") (TSX: CAL, OTCQX: CALVF, AIM: CMCL) has received notification from Pinetree Capital Ltd. ("Pinetree"), a Canadian publicly traded diversified investment and venture capital company, that it has purchased 290,000 common shares of the Company through the facilities of the Toronto Stock Exchange. Pinetree has also advised the Company that, as a result of the purchase of the shares, it and its joint actors collectively hold an aggregate of 50,263,000 common shares of the Company - or approximately 10.04% of the Company's total issued and outstanding common shares. Of this total, Pinetree owns 48,250,000 shares, being approximately 9.6% of the Company's total issued common shares.

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