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                          CALEDONIA MINING CORPORATION

                                  NEWS RELEASE

                 KIKERK LAKE PROPERTY - WINTER PROGRAM UNDERWAY

                            MARCH 26TH 2002, 9.00 AM

Caledonia Mining Corporation ("Caledonia") of Toronto (TSE: CAL) and NASDAQ
(OTCBB: CALVF) is pleased to report that it has been advised by its joint
venture partner Ashton Mining of Canada Inc. ("Ashton") that the 2002 winter
field program on the Kikerk Lake property in the north Slave craton region of
Nunavut has commenced. The program includes the collection of a mini-bulk sample
from the diamondiferous Potentilla kimberlite and the identification of new
targets for drilling.

POTENTILLA KIMBERLITE

The Potentilla kimberlite was discovered in September 2001. The discovery hole,
drilled vertically in the center of a magnetic anomaly, intersected kimberlite
breccia beneath 9.9 metres of overburden to a depth of 142.3 metres and
terminated in hypabyssal kimberlite at a depth of 184.7 metres. As announced
October 24, 2001, a 207.8 kg sample returned 230 microdiamonds and 22
macrodiamonds. The largest stone measured 2.13 x 1.94 x 0.87 mm.

The current program has two objectives: to collect a mini-bulk sample of up to
ten tonnes from Potentilla by core drilling, and to define the shape and size of
the body by delineation drilling and geophysical surveys.

TARGET GENERATION

At least one unexplained indicator mineral train is present on the Kikerk Lake
property. A detailed helicopter-borne magnetic and electromagnetic survey is now
underway over an area that includes the indicator mineral train and the
Potentilla kimberlite. Ground geophysical surveys will follow over anomalies
that the airborne investigation identifies. Any high priority targets will be
drilled before the ice breakup.

Caledonia and Ashton each hold an interest of 35 percent in the property,
Northern Empire Minerals Ltd. holds the remaining 30 percent interest.

Further information regarding Caledonia's exploration activities and operations
along with its latest financials may be found on the Corporation's website
http:/www.caledoniamining.com

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



OR VISIT CALEDONIA ON THE WORLDWIDE WEB AT HTTP://WWW.CALEDONIAMINING.COM