Caledonia Mining Corporation ("Caledonia") (TSX: CAL)(OTCBB: CALVF)(AIM: CMCL) is pleased to announce that the sale of Barbrook Mines Limited, in South Africa, to Eastern Goldfields SA (Pty) Ltd was concluded on May 30, 2008 and that Caledonia has received approximately C$9.3 million in full settlement of the sale price.

SAN DIEGO, Feb. 25 /PRNewswire-FirstCall/ -- Eastern Goldfields, Inc.

Caledonia Mining Corporation ("Caledonia")(TSX: CAL)(OTCBB: CALVF)(AIM: CMCL) is pleased to announce it has accepted an offer for the purchase of the loan account and the entire issued share capital of Barbrook Mines Limited ("Barbrook Mines") in South Africa by Eastern Goldfields, Inc.