Shareholder Notification

Caledonia Mining Corporation

(TSX: CAL, OTCQX: CALVF, AIM: CMCL),

Major Shareholder Notification

Toronto, Ontario - May 6, 2014: Caledonia Mining Corporation (the "Company") (TSX: CAL, OTCQX: CALVF, AIM: CMCL) announces that it received notification on May 5 2014, that mutual funds managed by Allan Gray, a South African investment trust/fund manager are now interested in 6,382,500 ordinary shares of the Company, representing 12.25 per cent of the current issued share capital of the Company.

Caledonia has also received notification that Pinetree Capital Ltd, which previously owned 5,026,300 ordinary shares of the Company, representing 10.04 per cent of the issued share capital of the Company, no longer has any interest in the Company's shares.

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