Stefan Hayden, President & CEOCaledonia Mining Corporation

The Nama Cobalt Project in Zambia

A world class deposit

May 2006

Disclaimer

Certain forward looking statements may be contained in the presentation which include, without limitation, expectations regarding metal prices, estimates of production, operating expenditure, capital expenditure and projections regarding the completion of capital projects as well as the financial position of the company.

Although Caledonia believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be accurate. Accordingly, results could differ from those projected as a result of, among other factors, changes in economic and market conditions, changes in the regulatory environment and other business and operational risks.

About Caledonia

• A diversified junior mining, exploration and development company

• Primarily focused on Southern Africa

• Solid pipeline of projects at different stages of development

• Producing gold mine in South Africa

• Key exploration & development focus for 2006:

– Cobalt: Nama Exploration Project, Zambia

– PGEs: Rooipoort Exploration Project, South Africa

• Current market capitalization ~ C$81 million, or US$71 million,

or £50 million, or € 53 million

TSX: CAL

NASDAQ: CALVF

London’s AIM: CMCL

Caledonia’s Directors & Management Team

Stefan HaydenPresident & CEO

Joined Caledoniain 1995

Elected to currentposition in 1997

>35 years experiencein mining industry

Rupert PardoeChairman

Joined Caledonia in February 2005

>25 years experience in mining and finance sectors

Previously Finance Director of Anglo American

Jim JohnstoneCOO

Joined Caledonia in 1997

>40 years experience in mining across North America, Africa, Europe & Asia

Steve CurtisCFO

Joined Caledonia in March 2006

>24 years experience in finance and manufacturing

Our Assets

Doing Business in Zambia

Caledonia

- Present since 1990’s- Good Govt. relations

- Extensive African experience

Politically stable

- Expanding economy

- Good tax environment for mining

Good Infrastructure

- Power

- Easy access to tarred roads & railway network

Mining Industry

- Well established

- Good skill base

- Enabling legislation

• 100% owned by Caledonia

• One of the world’s largest primary cobalt oxide properties discovered and drilled

• Comprises 5 contiguous licence areas covering 1,150 km2

• Close proximity to Copperbelt infrastructure

• Large exploration potential for the underlying sulphide ore bodies

• Large land position with excellent further exploration potential

The Nama Cobalt Exploration Project

Zambian Mining & Exploration Licences

4

Independent Resource Estimation

• The entire resource as detailed by WGM lies above the 120 metre level and can be extracted by open pit methods.

• Kilborn Limited, Ontario, Canada conducted an independent assessment of the mining and operating costs and suggested a 95% mining recovery, and 5% practical mining losses associated with mining operations.

Nama Licence Area

5 10 15 25

km0

NGO

SA

LS 55

NAMA

LS001

NLU

AM

FULA

LS53

(500

km)

(450

km)

(128

km)( 10

5

km)

(93

km)

8620000

8630000

8640000

8650000

8660000

8670000

86800008680000

8670000

8660000

8650000

8640000

8630000

8620000

5200

00

5300

00

5400

00

5500

00

5600

00

5700

00

5800

0058

0000

5700

00

5600

00

5500

00

5400

00

5300

00

5200

00

Republic of Zambia

D.R. Of Congo

ChililabombweKONKOLA WEST LS175

Republic of Zambia

KONKOLA WEST LS175A 563800E 8642800SB 567600E 8644400SC 570800E 8642000SD 572500E 8638000SE 578500E 8638400SF 580400E 9639700SG 584700E 8634700SH 582100E 8633100SI 567600E 8633100S

KALIMBA LS002

A BC

E F

GHI

D

Republic of Zambia

Konkola Shaft

Konkola Main Shaft

Nama: Geological Setting

Nama Exploration Work

• Soil Geochemical Surveys

• Pitting and Trenching

• HR Airborne Magnetics and Radiometrics

• Ground Magnetic Surveys

• Mineralogical Examinations

• Reverse Circulation and Diamond Drilling

• Detailed Metallurgical Testwork

Nama Exploration Work

• Soil Geochemical Surveys

– The soil geochemical surveys, with over 19,972 samples

taken at 100 metre spacing, were assayed for 32 individual

elements by ICP at Chemex Laboratories, Vancouver,

Canada.

– Over 639,104 certified assay results from Chemex are

recorded in the Nama database.

Co-in-Soil Geochem

Cu-in-Soil Geochem

Mn-in-Soil Geochem

Ni-in-Soil Geochem

Zn-in-Soil Geochem

Location of the 16

Identified Cobalt

Anomalies

“A” to “Q”

Soil Geochemical Anomalies

Nama Exploration Work

• HR Airborne Magnetics and Radiometrics

– Carried out over the entire 1,148 km² License Area & provided valuable new information on the stratigraphic and structural setting of each of the anomalies.

Nama Exploration Work

• Soil Geochemical Surveys

• Pitting and Trenching

• HR Airborne Magnetics and Radiometrics

• Ground Magnetic Surveys

• Mineralogical Examinations

• Reverse Circulation and Diamond Drilling– Carried out on the anomalous zones of the Nama and

Luamafula areas. Over 290 holes were drilled totalling approximately 38,000 metres.

– Each metre of drilling was sampled, logged by Nama geologists, split and bagged and air freighted to ChemexLaboratories in Vancouver, Canada, for independent assay.

Nama Exploration

• Deposits are open pittable with a stripping ratio of less than 1:1

• On Anomaly “A” majority of drill holes were stopped at 150m while still in the ore zone, indicating mineralization continues below this depth.

• On Anomaly “A ” able to vary production of a cobalt concentrate from 2% up to 6% to 9%

Nama Cobalt and Copper Hydrometallurgical Recoveries

• Independent metallurgical test work has shown that a reduced

sulphurous acid leach process will recover over 85% of the cobalt

from the higher grade area of anomaly “A” after magnetic

separation, and approximately 70% from anomaly “C”.

• The test work indicates the feasibility of a concentration stage

using Screening, Scrubbing, Desliming and Magnetic Separation.

• Further processing would involve reduced sulphurous acid

leaching, counter current decantation, solvent extraction of the

copper and cobalt to produce a cobalt carbonate or hydroxide

and/or alternatively electro-winning to produce high purity

copper and cobalt cathode metal.

Nama Mineralization Characteristics

• Oxide Cobalt ore

• Co > Cu

• Fe >> Mn

• Low poison metals– Lead < 10 ppm Sb < 5 ppm– As < 10 ppm Hg < 1 ppm– Zn < 50 ppm

Nama – Anomaly “A” – Bulk Sample Trench

Typical Nama Ore

Typical Nama Ore

Typical Nama Ore

Typical Nama Ore

View of BulkSample Trench

Anomaly “A” Bulk sample being loaded

Bulk sample being tipped into drums which where then sealed for transportation to MINTEK in South Africa

Anomaly “A” Bulk Sample being takenand sealed in drums

Typical mineralization in the Anomaly “A” Bulk Sample Trench

Typical Cobaltmineralization in the Anomaly “A”Bulk Sample Trench

Anomaly “A” Bulk Sample Drums sealed for transport

Nama Anomaly “A” Pancake Pit – Strip Ratio = 1.0

Nama Anomaly “A” Pancake Pit & Main Pit showing Drilling

Initial Pit 0.62 Mt @ 0.16% Co S.R. = 1.2

Initial Pit Close-up

Nama Exploration Camp: Visit by Government officials

Developing Nama

• Mini bulk sample tested by Mintek : economic concentrate is possible

• Letters of Intent : Signed and in process with large end-users to supply concentrates

• Environmental impact assessment conducted and approval received from Zambian Government for pilot plant operation

• Ongoing discussions with other refineries : strong interest

• Development proposal: Refineries fund construction of dedicated plants

– Secures their cobalt concentrate feed

– Stable country

Nama – Next Steps

• Complete feasibility study & plant design for Anomaly “A”

• Securing additional agreements with other refineries to supply concentrate

• Construct & commission first plant module within 9 months of heads of agreement

• Establish resource base which is NI 43-101 compliant

• Bulk sample anomalies B,C,D for concentration verification

• Continue exploration to establish inferred resource for anomalies E-P

Contacts

Stefan Hayden,President & CEO,Caledonia Mining

T: +27 11 447 2499

E: shayden@caledoniamining.com

W: www.caledoniamining.com

Stefan Hayden, President & CEOCaledonia Mining Corporation

The Nama Cobalt Project in Zambia

A world class deposit

May 2006