Caledonia Mining Corporation Plc Declares quarterly dividend

CALEDONIA MINING CORPORATION PLC COM SHS NPV (DI)

Caledonia Mining Corporation Plc COM SHS NVP (DI) (LON:CMCL) today announced that its board of directors has declared a dividend of six and seven eighths United States cents (US$0.06875) on each of the Company’s common shares. This amount represents a revised quarterly dividend policy following the recently completed consolidation of the Company’s common shares on an overall one for five basis.

The relevant dates relating to the dividend are as follows:

· Ex-dividend date for shares held on the share register: July 12, 2017

· Ex-dividend date for shares held through depositary interests in CREST in the UK: July 13, 2017

· Record date: July 14, 2017

· Dividend cheque mailing date: July 28, 2017

Shareholders and depositary interest holders in Canada and the UK will be paid in Canadian Dollars and Sterling respectively. The Canadian Dollar and Sterling dividend payments will be calculated using the relevant Bank of Canada exchange rates on the record date.

Chief Executive Officer, Steve Curtis, said: “Caledonia maintains its quarterly dividend but at a new level of 6.875 cents per share, reflecting the successful share consolidation on an overall one for five basis, which the Company completed at the end of June 2017.

“We are targeting production of 52,000 to 57,000 ounces of gold from the Blanket Mine during 2017 as we progress towards increasing annual production to 80,000 ounces by 2021 as a result of our Investment Plan. I am confident that as gold production continues to increase at the Blanket Mine, the cost per ounce of gold produced will continue to fall, with a commensurate improvement in cash generation.

“Caledonia remains committed to distributing cash to shareholders whilst simultaneously retaining a robust balance sheet.”

Caledonia’s Dividend Policy

Caledonia’s strategy to maximise shareholder value includes a quarterly dividend policy which the board of directors adopted in 2014.

On July 3, 2017 the board approved a revised quarterly dividend policy by increasing the amount of the quarterly dividend fivefold from 1.375 United Shares cents per share to 6.875 United Shares cents per share to reflect the one for five share consolidation that was completed at the end of June 2017. The net overall effect has been to maintain the aggregate amount of the quarterly dividend.

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Since 2013, Caledonia has paid dividends to shareholders totaling the equivalent of US$1.51 per share (on a post share consolidation basis).

It is expected that the dividend of twenty-seven and a half United States cents per annum, paid in equal quarterly instalments, will be maintained. Caledonia continues to maintain its strong financial position and is satisfied that it can implement its stated growth strategy without the need to raise third party finance.

Effect of the re-domicile from Canada to Jersey, Channel Islands

Following the re-domicile of the Company from Canada to Jersey with effect from March 19, 2016, the dividend is no longer subject to Canadian withholding tax and it is no longer eligible for the purposes of the Income Tax Act (Canada).

About Caledonia Mining Corporation Plc COM SHS NVP (DI)

Following the implementation of indigenisation in Zimbabwe, Caledonia’s primary asset is a 49% interest in an operating gold mine in Zimbabwe (“Blanket Mine”). Caledonia’s shares are listed in Canada on the Toronto Stock Exchange as “CAL”, its depositary interests representing the shares are traded on London’s AIM as “CMCL” and the shares are also traded on the American OTCQX as “CALVD”. Caledonia is in the process of applying to list its shares on the NYSE MKT LLC (“NYSE MKT”) and, provided listing requirements continue to be met, expects the listing to occur on or about the middle of July. The Company intends to terminate its trading facility for the common shares on the OTCQX at the same time as completion of a listing on NYSE MKT.

At March 31, 2017, Caledonia had cash of approximately US$11.7m. Blanket Mine plans to increase production from 50,351 ounces in 2016 to approximately 80,000 ounces in 2021; Blanket Mine’s target production for 2017 is 52,000 to 57,000 ounces. Caledonia expects to publish its results for the quarter to June 30, 2017 on August 14, 2017.

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