(CALEDONIA MINING CORPORATION LOGO)

                          CALEDONIA MINING CORPORATION

                                  NEWS RELEASE

                  CALEDONIA DECLINES ACQUISITION OF MOGALE GOLD
                    AND UPDATES ITS SOUTH AFRICAN ACTIVITIES

                      09:00 HRS MARCH 20TH, 2003, IMMEDIATE

Caledonia Mining Corporation ("Caledonia") of Toronto (TSX: CAL and
NASDAQ-OTCBB: CALVF) completed its due diligence of the Mogale Gold (Pty) Ltd.
("Mogale") operation west of Johannesburg, South Africa, and has elected not to
proceed with the acquisition of Mogale. Caledonia is pleased to report on the
progress at the 100% owned Barbrook Mine near Barberton, South Africa and on its
other South African properties.

Caledonia completed its due diligence investigation into Mogale by the end of
February 2003. After further negotiations during March with the owners of Mogale
and despite the fact that under Caledonia's management gold production at Mogale
was doubled in February, Caledonia has decided not to proceed with the
acquisition, as in management opinion Mogale with its present and future cost
profiles and liabilities will not add value to Caledonia. Seductive as gold
production is, it must at all times have the flexibility and cost structure to
continue to add shareholder value. Caledonia's management responsibilities for
Mogale, which were assumed during the due diligence period are now concluded,
and Caledonia has accordingly been paid for these services.

At the Barbrook Gold Mine in Mpumalanga Province of South Africa, mine
development continues to progress, tonnage was mined from the first stope during
February, development for the main stoping block is well advanced and production
from these stopes commenced in March. Mined tonnage for March is scheduled at
3,000 tonnes, increasing to 4,500 tonnes in April and 6,000 tonnes in May.
Planning and underground development to further increase mined tonnage
continues.

The additions and refurbishing of the Barbrook Metallurgical plant is well
advanced and the crushing, milling, and flotation circuits have been
commissioned, with the regrind, and PreOx circuits being commissioned within the
next few days. The resin-in-leach circuit, which has been subject to unexpected
supplier delays, has been installed and will be commissioned shortly resulting
in gold adsorption later in this month.

A comprehensive desk study on the Rooipoort platinum prospect, based on the
available geological and geophysical information has been completed. The
Rooipoort prospect was recently acquired by the Corporation's 96% owned
subsidiary, Eersteling Gold Mines Limited. The desk study has confirmed the
likely presence of both the Merensky and U2 reefs on the property and ground
geophysical follow-up work is planned to commence immediately and will be
immediately followed by a diamond-drilling program.

Simultaneously with the exploration on Rooipoort, Caledonia intends to shortly
commence the necessary work to return the Eersteling gold mine to production.
The plan is for Eersteling to commence gold production during the third quarter
2003.

At the Goedgevonden diamond property, early summer rains last year caused the
large diameter auger sampling program to be delayed. Caledonia has acquired the
time domain airborne geophysics flown over the area and expects to conclude the
interpretation of this by mid April. Based on these conclusions




                                      - 2 -


Caledonia then plans to commence a large diameter auger-sampling program once
the summer rains have stopped and the water table has dropped sufficiently to
allow the auger to proceed. The program is designed to provide a sufficiently
large bulk sample to accurately verify the grade and quality of diamonds to be
found in the undisturbed but heavily weathered kimberlite overlying the
competent rock of the kimberlite pipe. Provided the results of the bulk sampling
program are sufficiently encouraging, a bankable feasibility will be completed.

FOR FURTHER INFORMATION PLEASE CONTACT CALEDONIA MINING CORPORATION:



                                                                          
S. E. HAYDEN                                JAMES JOHNSTONE                     CHRIS HARVEY
Chairman, President and CEO                 V-P Operations and COO              Technical Director
South Africa                                Canada                              Canada
Tel: (011-27-11) 447-2499                   Tel: (1-905) 607-7543               Tel: (1-905) 607-7543
Fax: (011-27-11) 447-2554                   Fax: (1-905) 607-9806               Fax: (1-905) 607-9806


FURTHER INFORMATION REGARDING CALEDONIA'S OPERATIONS, EXPLORATION ACTIVITIES,
AND LATEST FINANCIAL STATEMENTS CAN BE FOUND ON THE CALEDONIA WEBSITE AT
HTTP://WWW.CALEDONIAMINING.COM