Caledonia NASDAQ Hearing Scheduled for September 2, 1998.

TORONTO--(BUSINESS WIRE)--Aug. 13, 1998--CALEDONIA MINING CORPORATION of Toronto (TSE-CAL, NASDAQ-CALVF) wishes to announce that a hearing is scheduled for September 2, 1998 with the NASDAQ Listing Qualifications Panel to determine the eligibility of the Corporation for continued listing on the NASDAQ National Market.

Pursuant to new listing rules being implemented by the NASDAQ stock market, a minimum bid price of US $1.00 per share for a period of ten consecutive trade days is required for a company to retain compliance with NASDAQ listing standards. Caledonia is in compliance with all listing maintenance standards for continued trading on the NASDAQ National Market except for the minimum US $1.00 bid requirement. As part of the Listing Qualifications Panel hearing process, NASDAQ requires all companies which are not in compliance with the minimum bid requirement to present a plan to regain compliance. Representatives of Caledonia will attend the hearing scheduled for September 2, 1998 and will present a plan for achieving compliance with the US $1.00 listing requirement.

The Directors of Caledonia have decided that it would not be in the best interests of shareholders to implement a reverse stock split solely in order to achieve compliance with the listing requirements in the near term, and will not include this option in the plan being presented to the NASDAQ Listing Qualifications Panel. The Directors believe that the achievement of the US $1.00 minimum bid requirement should be based upon the underlying economic fundamentals of the asset base of the Corporation and that share consolidations undertaken by other companies in the present market have generally resulted in decreases in shareholder value.

In the event the NASDAQ Listing Qualifications Panel does not accept the plan of the Corporation for achieving compliance with the US $1.00 minimum bid price, then the Corporation will make application to trade on the NASDAQ OTC Market. Caledonia will continue, however, to trade on The Toronto Stock Exchange as usual.

For further information please contact:

Steve Poad Vice President Finance Canada TEL: [phone] FAX: [phone]

Jim Johnstone Vice President Operations Canada TEL: [phone] FAX: [phone]

S. E. Hayden Chairman, President & CEO South Africa TEL: [phone] FAX: [phone]

or visit Caledonia on the World Wide Web at: http://www.caledoniamining.com

    CONTACT: Caledonia Mining Corp.
              Steve Poad, (1-905) 829-4848
                     FAX: [phone]
              Jim Johnstone, (1-905) 829-4848
                     FAX: [phone]
              S. E. Hayden, (27-11) 447-2499
                       FAX: [phone]