Re: Warrants

14 Sep 2005 14:00

Caledonia Mining Corporation14 September 2005 CALEDONIA MINING CORPORATION CALEDONIA AMENDS TERMS OF SHARE PURCHASE WARRANTS Toronto, Ontario - September 14, 2005: Caledonia Mining Corporation("Caledonia") (TSX: CAL, NASDAQ: CALVF, AIM: CMCL) has amended the terms of27,232,909 outstanding share purchase warrants - which have had exercise datesof September 29, 2005 as to a portion, and October 26, 2005 as to the balance -all exercisable at $0.55 per share. All of the warrants will now be exercisableat $0.11 per share on or before October 31, 2005. The warrants were granted in a 2004 private placement by Caledonia. As they arenow seriously out of the money it is considered appropriate the exercise pricesbe reduced to $0.11 per share. The closing market price of Caledonia's shares onthe Toronto Stock Exchange on September 12, 2005 was $0.11 per share. Caledoniais optimistic that, based on the new terms, a significant number of the warrantswill be exercised thereby providing it additional working capital. For further information please contact Caledonia Mining Corporation: Stefan Hayden James Johnstone Alex Buck / Nick BiasPresident and CEO, V-P Operations and COOCaledonia Mining Caledonia Mining Buck-BiasTel: +27-11 447-2499 Tel: +1 (905) 607-7543 Tel: +44 7932 740 452 Further information regarding Caledonia's exploration activities and operationsalong with its latest financials may be found on the Corporation's website http://www.caledoniamining.com This information is provided by RNS The company news service from the London Stock Exchange