St Helier - Caledonia Mining Corporation Plc ('Caledonia' or the 'Company') is pleased to announce the completion of the purchase of an additional 15 per cent shareholding in Blanket Mine (1983) (Private) Limited ('Blanket').

Summary

Today's announcement marks the completion of the transaction first announced on November 6, 2018, following receipt of approvals from various Zimbabwean regulatory authorities.

The purchase of Fremiro's 15 per cent holding means Caledonia's shareholding in Blanket is now 64 per cent.

Gross consideration for Fremiro's shareholding in Blanket is $16.667 million which has been settled through the cancellation of a loan between Fremiro and Caledonia and the issue of 727,266 new shares in Caledonia.

Fremiro will now hold approximately 6.3 per cent of Caledonia's enlarged issued share capital.

On November 6, 2018, Caledonia announced it had entered into a legally binding agreement with Fremiro Investments (Private) Limited ('Fremiro') to purchase Fremiro's 15 per cent shareholding in Blanket. Completion of the purchase required approvals from various Zimbabwean regulatory authorities, all of which have now been received. The gross consideration for Fremiro's shareholding in Blanket is $16.667 million which has been settled through the cancellation of the loan between Fremiro and the Company which stood at $11.467 million as at June 30, 2018 and the issue of 727,266 new shares in Caledonia at an issue price of $7.15 per share, being the closing price on the NYSE American at August 17, 2018. Consequently, Caledonia's shareholding in Blanket is 64 per cent and Fremiro holds approximately 6.3 per cent of Caledonia's issued share capital.

Commenting on the transaction, Steve Curtis, Chief Executive Officer, said: 'I am pleased to report that the Company has concluded its transaction with Fremiro to increase Caledonia's shareholding in Blanket to 64 per cent. I would like to thank Fremiro for its support as a shareholder in Blanket during the last seven years and am confident that Fremiro, now as a significant shareholder in the Company, will continue to be supportive of Caledonia's business going forward.'

Per the Company's announcement of November 6, 2018, Caledonia is issuing 727,266 common shares to Fremiro under the terms of the transaction. Application has been made by Caledonia for these shares to be admitted in the form of depositary interests to trading on AIM and it is anticipated that trading in such securities will commence at 8am on or around January 24, 2020 ('Admission'). Upon Admission, Caledonia's issued share capital will be 11,515,860 common shares.

Contact:

Mark Learmonth

Tel: +44 1534 679 800

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.

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