<SEC-DOCUMENT>0001137171-13-000217.txt : 20130517
<SEC-HEADER>0001137171-13-000217.hdr.sgml : 20130517
<ACCEPTANCE-DATETIME>20130517125235
ACCESSION NUMBER:		0001137171-13-000217
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20130331
FILED AS OF DATE:		20130517
DATE AS OF CHANGE:		20130517

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CALEDONIA MINING CORP
		CENTRAL INDEX KEY:			0000766011
		STANDARD INDUSTRIAL CLASSIFICATION:	GOLD & SILVER ORES [1040]
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			A1
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-13345
		FILM NUMBER:		13854090

	BUSINESS ADDRESS:	
		STREET 1:		SUITE 1201 - 67 YONGE STREET
		CITY:			TORONTO
		STATE:			A6
		ZIP:			M5E 1J8
		BUSINESS PHONE:		4163699835

	MAIL ADDRESS:	
		STREET 1:		SUITE 1201 - 67 YONGE STREET
		CITY:			TORONTO
		STATE:			A6
		ZIP:			M5E 1J8

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	GOLDEN NORTH RESOURCE CORP
		DATE OF NAME CHANGE:	19920302
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>caledonia6k05172013.htm
<DESCRIPTION>CALEDONIA MINING CORPORATION 6-K
<TEXT>
<HTML>
<HEAD>
     <TITLE>CT Filed by Filing Services Canada Inc. 403-717-3898</TITLE>
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<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><font face="Times New Roman">&nbsp;</font></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><font face="Times New Roman">FORM 6-K</font></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><font face="Times New Roman">SECURITIES AND EXCHANGE COMMISSION</font></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><font face="Times New Roman">Washington, DC 20549</font></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><font face="Times New Roman">&nbsp;</font></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><font face="Times New Roman">Report of Foreign Private Issuer</font></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><font face="Times New Roman">Pursuant to Rule 13a-16 or 15d-16</font></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><font face="Times New Roman">Of the Securities Exchange Act of 1934</font></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font face="Times New Roman">For the month of
May 2013</font></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font face="Times New Roman">Commission File Number: 000-13345</font></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><font face="Times New Roman">&nbsp;</font></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><font face="Times New Roman">CALEDONIA MINING CORPORATION</font></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font face="Times New Roman">(Translation of registrant&rsquo;s name into
English)</font></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><font face="Times New Roman">1710 &ndash; 1177 West Hastings Street</font></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><font face="Times New Roman">Vancouver, British Columbia V6E 2L3</font></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><font face="Times New Roman">Canada</font></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font face="Times New Roman">(Address of principal executive offices)</font></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font face="Times New Roman">&nbsp;</font></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font face="Times New Roman">Indicate by check mark whether the registrant
files or will file annual reports under cover Form 20-F or Form 40-F</font></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font face="Times New Roman">Form 20-F___<U>x</U>___ Form 40-F _____</font></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font face="Times New Roman">&nbsp;</font></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font face="Times New Roman">Indicate by check mark if the registrant is
submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____</font></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font face="Times New Roman">&nbsp;</font></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font face="Times New Roman">Indicate by check mark if the registrant is
submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____</font></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font face="Times New Roman">&nbsp;</font></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font face="Times New Roman">Indicate by check mark whether by furnishing
the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to
Rule 12g3-2(b) under the Securities Exchange Act of 1934.</font></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font face="Times New Roman">Yes ____ No&nbsp;&nbsp; <U>x&nbsp;&nbsp;</U></font></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font face="Times New Roman">If &ldquo;Yes&rdquo; is marked, indicate below
the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-_______</font></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font face="Times New Roman">&nbsp;</font></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B><font face="Times New Roman">Signatures</font></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font face="Times New Roman">Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.</font></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><font face="Times New Roman">&nbsp;</font></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-size: 10pt">
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%; font-family: Times New Roman, Times, Serif"><font face="Times New Roman">&nbsp;</font></TD>
    <TD COLSPAN="3" STYLE="line-height: 115%; font-weight: bold"><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="font: 10pt Times New Roman, Times, Serif">Caledonia Mining Corporation</FONT></font></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%; font-family: Times New Roman, Times, Serif"><font face="Times New Roman">&nbsp;</font></TD>
    <TD COLSPAN="3" STYLE="line-height: 115%"><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="font: 10pt Times New Roman, Times, Serif">(Registrant)</FONT></font></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 27%; line-height: 115%; font-family: Times New Roman, Times, Serif"><font face="Times New Roman">&nbsp;</font></TD>
    <TD STYLE="width: 1%; line-height: 115%"><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="font: 10pt Times New Roman, Times, Serif">By:</FONT></font></TD>
    <TD STYLE="width: 47%; line-height: 115%; text-decoration: underline; font-family: Times New Roman, Times, Serif"><font face="Times New Roman">/s/&nbsp; Carl Jonsson</font></TD>
    <TD STYLE="width: 25%; line-height: 115%; font-family: Times New Roman, Times, Serif"><font face="Times New Roman">&nbsp;</font></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%; font-family: Times New Roman, Times, Serif"><font face="Times New Roman">&nbsp;</font></TD>
    <TD COLSPAN="3" STYLE="line-height: 115%"><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-size: 10pt">Name: &nbsp;Carl Jonsson</FONT></font></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%; font-family: Times New Roman, Times, Serif"><font face="Times New Roman">&nbsp;</font></TD>
    <TD COLSPAN="2" STYLE="line-height: 115%"><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT STYLE="font: 10pt Times New Roman, Times, Serif">Title: &nbsp;&nbsp;&nbsp;Director and Secretary</FONT></font></TD>
    <TD STYLE="line-height: 115%; font-family: Times New Roman, Times, Serif"><font face="Times New Roman">&nbsp;</font></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font face="Times New Roman">Dated:
May 17, 2013</font></P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font face="Times New Roman">&nbsp;</font></P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="margin: 0">&nbsp;</P>





<P STYLE="text-align: center; margin: 0">&nbsp;</P>



<P STYLE="text-align: center; margin: 0">&nbsp;</P>

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<P STYLE="text-align: center; margin: 0"><B><font face="Times New Roman">Exhibit Index</font></B></P>

<div align="center">
 <center>
 <table border="0" cellpadding="0" cellspacing="0" width="100%" height="66">
  <tr>
   <td width="10%" style="border-bottom: 1 solid #000000" height="16"><font size="2" face="Times New Roman">Exhibit</font></td>
   <td width="90%" style="border-bottom: 1 solid #000000" height="16"><font size="2" face="Times New Roman">Description</font></td>
  </tr>
  <tr>
   <td width="10%" height="16"><font size="2" face="Times New Roman">99.1</font></td>
   <td width="90%" height="16"><font size="2" face="Times New Roman"><a href="newsrelease.htm">News
    Release dated May 13,2013</a></font></td>
  </tr>
  <tr>
   <td width="10%" height="17"><font size="2" face="Times New Roman">99.2</font></td>
   <td width="90%" height="17"><font size="2" face="Times New Roman"><a href="mda.htm">Caledonia
    Mining Corporation Management's Discussion and Analysis for the Quarter
    ended March 31, 2013</a></font></td>
  </tr>
  <tr>
   <td width="10%" height="17"><font size="2" face="Times New Roman">99.3</font></td>
   <td width="90%" height="17"><font size="2" face="Times New Roman"><a href="fin.htm">Interim
    Financial Statements for the Quarter ended March 31, 2013</a></font></td>
  </tr>
 </table>
 </center>
</div>

<P STYLE="margin-top: 0; margin-bottom: 0"><font face="Times New Roman">&nbsp;</font></P>

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</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>newsrelease.htm
<DESCRIPTION>NEWS RELEASE DATED MAY 13,2013
<TEXT>
<HTML>
<HEAD>
     <TITLE>CT Filed by Filing Services Canada Inc. 403-717-3898</TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0" align="center"><img border="0" src="image_001.jpg" width="680" height="119"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 12.1pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 12.1pt 0 0; text-align: center"><B>Caledonia Mining Corporation </B></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 12.1pt 0 0; text-align: center"><B>(TSX: CAL, OTCQX: CALVD, AIM: CMCL)</B></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 12.1pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 12.1pt 0 0; text-align: center"><B>Q1 2013 Results and Confirmation
of Annual General Meeting Date </B></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 12.1pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 11pt/110% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>May 13, 2013</B>: Caledonia Mining Corporation
(&ldquo;Caledonia&rdquo; or the &ldquo;Company&rdquo;) is pleased to announce its operating and financial results for the first
quarter 2013 (&ldquo;Q1&rdquo; or the &ldquo;Quarter&rdquo;). All results are reported in Canadian dollars unless otherwise indicated.
Caledonia owns 49% of the Blanket Mine in Zimbabwe. Operational and financial information set out below is on a 100% basis unless
indicated otherwise.</P>

<P STYLE="font: 11pt/110% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 6pt 0; text-align: justify"><B>Operating Highlights &ndash; Blanket
Mine, Zimbabwe</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 3pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 14.2pt"><FONT STYLE="font: 11pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif">Gold produced in Q1 was 10,472 ounces (Q4
2012 11,821 ounces; Q1 2012 9,164 ounces) and was ahead of the planned target.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 3pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 21.25pt"></TD><TD STYLE="width: 14.2pt"><FONT STYLE="font: 11pt Courier New, Courier, Monospace">o</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif">Gold production in the Quarter was restrained
by the short accounting period for the Quarter which had only 84 working days up to cut-off on 26th March (due to the early incidence
of Easter). </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 14.2pt"><FONT STYLE="font: 11pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif">Gold production for the second quarter has
started well: production in April 2013 was approximately 4,385 ounces. Management believes that Blanket is on course to deliver
its targeted production of 40,000 ounces for 2013. </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 3pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 14.2pt"><FONT STYLE="font: 11pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif">Blanket&rsquo;s cash operating cost per ounce
of gold produced in the Quarter increased to US$669 from US$605 in the preceding quarter. </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 3pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 21.25pt"></TD><TD STYLE="width: 14.2pt"><FONT STYLE="font: 11pt Courier New, Courier, Monospace">o</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif">The overall cash cost of production in the
Quarter fell to U$$7.0 million compared to US$7.2 million the preceding quarter but the cash cost per ounce of gold produced increased
due to the lower gold production during the Quarter. </FONT></TD></TR></TABLE>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 6pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 6pt 0; text-align: justify"><B>Financial Highlights</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 14.2pt"><FONT STYLE="font: 11pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif">Gold sales during the Quarter were 11,964
ounces at an average sales price of $1,601 per ounce of gold.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 14.2pt"><FONT STYLE="font: 11pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif">Gross Profit (i.e. after depreciation and
amortization but before administrative expenses) was $9.0 million (Q4 2012, $9.3 million; Q1 2012, $9.0 million).</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 3pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 14.2pt"><FONT STYLE="font: 11pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif">Net profit after tax for the Quarter attributable
to Caledonia shareholders was $4.6 million (Q4 2012, $3.4 million; Q1 2012, $7.1 million).</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 3pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 21.25pt"></TD><TD STYLE="width: 14.2pt"><FONT STYLE="font: 11pt Courier New, Courier, Monospace">o</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif">Net profit for the Quarter was after non-recurring
tax charges totalling approximately $2 million.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 14.2pt"><FONT STYLE="font: 11pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif">Basic earnings per share for the Quarter
were 0.9 cents per share, (Q4 2012, 0.6 cents; Q1 2012, 1.4 cents). The earnings per share numbers do not reflect the share consolidation
which took place after the end of the Quarter.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 3pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 14.2pt"><FONT STYLE="font: 11pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif">At March 31, 2013 Caledonia had cash and
cash equivalents of $25.2 million (December 31, 2012 $27.9 million; March 31, 2012 $16. 3 million).</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 3pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 21.25pt"></TD><TD STYLE="width: 14.2pt"><FONT STYLE="font: 11pt Courier New, Courier, Monospace">o</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif">The reduction in net cash was due to the
payment by Caledonia of its initial dividend of $2.5 million, working capital movements, high tax payments and capital investment.
</FONT></TD></TR></TABLE>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 6pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Exploration Highlights </B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 6pt 0 6pt 14.2pt; text-align: justify; text-indent: -14.2pt"><FONT STYLE="font: 11pt Symbol">&#183;</FONT><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif">The deep level exploration drilling at the Blanket Mine below 750m
Level has commenced. The first exploration hole into the Blanket Ore Body was completed and intersected mineralisation with a grade
of 3.57g/t over 4.70m at a depth of 940 meters. A second hole is now in progress. An additional drilling machine is being refurbished
and will be commissioned shortly. </FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 6pt 0 6pt 14.2pt; text-align: justify; text-indent: -14.2pt"><FONT STYLE="font: 11pt Symbol">&#183;</FONT><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif">Blanket has appointed four new exploration geologists to increase
the capacity of its exploration team. </FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 6pt 0 6pt 14.2pt; text-align: justify; text-indent: -14.2pt"><FONT STYLE="font: 11pt Symbol">&#183;</FONT><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif">Exploration at Blanket&rsquo;s satellite projects has continued. </FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 3pt; margin-bottom: 3pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 21.3pt"></TD><TD STYLE="width: 14.15pt"><FONT STYLE="font: 11pt Courier New, Courier, Monospace">o</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif">At the GG Project the shaft sinking has reached
a depth of 100m below surface. Diamond drilling on the 60m level continued in the Quarter and of the five holes drilled so far,
four have intersected mineralisation. Further drilling and tunnel development is in progress to allow for a better understanding
of the geometry of the identified zones. A total of 3,000m of diamond drilling is planned during 2013. </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 3pt; margin-bottom: 3pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 21.3pt"></TD><TD STYLE="width: 14.15pt"><FONT STYLE="font: 11pt Courier New, Courier, Monospace">o</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif">At Mascot, underground development towards
the North Parallel Zone appears to be entering the identified mineralised zone. Further development work will continue once the
rock handling systems have been installed to allow payable development material to be hoisted to surface. Development towards the
South Zone also continues. If the gold grades of the exposed mineralised zones prove to be economic, ore from Mascot would be delivered
to the main Blanket plant from late 2013. </FONT></TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 6pt 0 6pt 14.2pt; text-align: justify; text-indent: -14.2pt"><FONT STYLE="font: 11pt Symbol">&#183;</FONT><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif">At the Nama Copper Project further diamond drilling is being carried
out on additional zones of mineralisation that have been identified to the immediate west and south of the mineralised zone that
could extend the copper resource at depth</FONT><FONT STYLE="font-size: 10pt"> </FONT><FONT STYLE="font-size: 11pt">and define
an additional zone of copper enrichment near surface.</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt/110% Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 14.2pt"><FONT STYLE="font: 11pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif">Caledonia&rsquo;s OTCQX ticker changed temporarily
from CALVF to CALVD following the implementation of the share consolidation on 12 April 2013. It is anticipated that the ticker
will revert to CALVF shortly. </FONT></TD></TR></TABLE>

<P STYLE="font: 11pt/110% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/110% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">Commenting on the 2013 Q1 results, Stefan
Hayden, Caledonia President and Chief Executive Officer said: <I>&ldquo;The first Quarter of 2013 represented a further quarter
of solid performance; with the daily production rate ahead of expectations and a resulting Gross Profit of <FONT STYLE="color: black">$9.0
million. </FONT>The increase in cost per ounce was largely due to lower production, which means that Blanket&rsquo;s fixed costs
were spread over fewer ounces of gold. As production increases from 2014 onwards, I expect that our average cost per ounce of gold
produced should reduce somewhat. </I></P>

<P STYLE="font: 11pt/110% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 11pt/110% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><I>Supported by the Company&rsquo;s strong
cash position, development and exploration activity at Blanket continues at pace and we are moving towards achieving our targeted
increase in production. Production is expected to increase to approximately 48,000 ounces in 2014 with further increases to the
target of 76,000 ounces of gold from 2016 onwards. </I></P>

<P STYLE="font: 11pt/110% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 11pt/110% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><I>Exploration at Blanket&rsquo;s satellite
projects also continues and we are encouraged by the results evaluated so far. Exploration work at GG continues to identify mineralisation
and by the end of 2013 we hope to start transporting stockpiled ore from Mascot to Blanket for processing. </I></P>

<P STYLE="font: 11pt/110% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><I>&nbsp;</I></P>


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<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0"><I>&nbsp;</I></P>

<P STYLE="font: 11pt/110% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><I>As a low-cost producer with a robust
balance sheet, Caledonia is well-positioned to continue to implement its growth strategy, notwithstanding the current volatility
in the gold price.&rdquo;</I></P>

<P STYLE="font: 11pt/110% Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The full Report &amp; Accounts, including the
Management Discussion and Analysis for the quarter ended 31 March, 2013 are available from the Company's website www.caledoniamining.com
and from SEDAR.</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Annual General Meeting</B></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">The Notice of Annual Meeting, Management Information
Circular, Proxy Form, Voting Instruction Form and the Annual Report to Shareholders have been mailed to the registered shareholders
of the Company. Shareholders of record on April 19, 2013 will be entitled to receive notice of the meeting and to vote at the Annual
Meeting. These documents are also available on the Company's website at www.caledoniamining.com. The Annual Meeting will be held
at the office of the Company&rsquo;s Toronto Solicitors (Borden Ladner Gervais LLP) 44th Floor, Scotia Plaza, 40 King Street West,
Toronto, Ontario, on Friday, May 31, 2013 commencing at 10:00 a.m.</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: white">
    <TD STYLE="width: 56%; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 12.1pt 0 0; text-align: justify"><B>Caledonia Mining Corporation</B></P>
        <P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 12.1pt 0 0; text-align: justify">Mark Learmonth</P>
        <P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 12.1pt 0 0; text-align: justify">Tel: +27 11&nbsp;447 2499</P>
        <P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 12.1pt 0 0; text-align: justify">marklearmonth@caledoniamining.com</P></TD>
    <TD STYLE="width: 44%; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 12.1pt 0 0; text-align: justify"><B>Numis </B></P>
        <P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 12.1pt 0 0; text-align: justify">John Prior/Jamie Loughborough/ James
        Black</P>
        <P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 12.1pt 0 0; text-align: justify">Tel: +44 20 7260 1000</P></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; padding-right: 12.1pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="font: 11pt Arial, Helvetica, Sans-Serif; padding-right: 12.1pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 12.1pt 0 2.4pt; text-indent: -2.4pt"><B>Newgate Threadneedle </B></P>
        <P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 12.1pt 0 0; text-align: justify">Beth Harris / Adam Lloyd</P>
        <P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 12.1pt 0 0; text-align: justify">Tel: +44 20 7653 9850</P></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 1.7pt"><B>WH Ireland</B></P>
        <P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 1.7pt">Adrian Hadden/Nick Field</P>
        <P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 1.7pt">Tel: +44&nbsp;20 7220 1751</P></TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD STYLE="font: bold 11pt Arial, Helvetica, Sans-Serif; padding-right: 12.1pt; padding-left: 2.4pt; text-indent: -2.4pt">&nbsp;</TD>
    <TD STYLE="font: bold 11pt Arial, Helvetica, Sans-Serif; padding-right: -5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: white">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 12.1pt 0 2.4pt; text-indent: -2.4pt"><B>CHF Investor Relations</B></P>
        <P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 12.1pt 0 2.4pt; text-indent: -2.4pt">Jeremy Hill</P>
        <P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 12.1pt 0 2.4pt; text-indent: -2.4pt">Tel : +1 416 868 1079 x 238</P>
        <P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 12.1pt 0 2.4pt; text-indent: -2.4pt">jeremy@chfir.com</P>
        <P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 12.1pt 0 2.4pt; text-indent: -2.4pt"><B>&nbsp;</B></P></TD>
    <TD STYLE="font: bold 11pt Arial, Helvetica, Sans-Serif; padding-right: -5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 12.1pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 12.1pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 12.1pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 12.1pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 12.1pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 12.1pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 12.1pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 12.1pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 12.1pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 12.1pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 12.1pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 12.1pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 12.1pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 12.1pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 12.1pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 12.1pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 12.1pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 12.1pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 12.1pt 0 0; text-align: center"><B>&nbsp;</B></P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD COLSPAN="6" STYLE="border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Condensed Consolidated Statement of Comprehensive
        Income (unaudited)</B></P>
        <P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>
        <P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B><I>(in thousands of Canadian dollars except
        per share amounts)</I></B></P></TD></TR>
<TR>
    <TD COLSPAN="2" STYLE="vertical-align: top; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-bottom: 6pt; padding-left: 5.4pt; font-weight: bold; text-align: justify; text-indent: 21.6pt">&nbsp;</TD>
    <TD COLSPAN="4" STYLE="border-right: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center; text-indent: 21.55pt"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>Three months ended March 31</B></FONT></TD></TR>
<TR>
    <TD COLSPAN="3" STYLE="vertical-align: top; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; font-weight: bold; text-align: justify; text-indent: 21.6pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 19.4pt 0 8.8pt; text-align: right; text-indent: 0.65pt"><B>2013</B></P>
        <P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 12.3pt 0 35.2pt; text-align: center; text-indent: 0.65pt"><B>$</B></P></TD>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 22.95pt 0 22.25pt; text-align: center">2012</P>
        <P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 22.95pt 0 0; text-align: center; text-indent: 35.05pt">$</P></TD></TR>
<TR>
    <TD COLSPAN="3" STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Revenue</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: 9.5pt; padding-left: 8.8pt; font-weight: bold; text-align: right; text-indent: 0.65pt"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>19,218</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 22.95pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">17,503</FONT></TD></TR>
<TR>
    <TD COLSPAN="3" STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Royalty</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: 9.5pt; padding-left: 8.8pt; font-weight: bold; text-align: right; text-indent: 0.65pt"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>(1,349)</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 22.95pt; padding-left: 5.4pt; text-align: right; text-indent: 21.6pt"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">(1,227)</FONT></TD></TR>
<TR>
    <TD COLSPAN="3" STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Production costs</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: 9.5pt; padding-left: 8.8pt; font-weight: bold; text-align: right; text-indent: 0.65pt"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>(8,019)</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 22.95pt; padding-left: 5.4pt; text-align: right; text-indent: 21.6pt"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">(6,444)</FONT></TD></TR>
<TR>
    <TD COLSPAN="3" STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Depreciation</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 9.5pt; padding-left: 8.8pt; font-weight: bold; text-align: right; text-indent: 0.65pt"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>(803)</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 22.95pt; padding-left: 5.4pt; text-align: right; text-indent: 21.6pt"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">(836)</FONT></TD></TR>
<TR>
    <TD COLSPAN="3" STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>Gross profit</B></FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: 9.5pt; padding-left: 8.8pt; font-weight: bold; text-align: right; text-indent: 0.65pt"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>9,047</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 22.95pt; padding-left: 5.4pt; text-align: right; text-indent: 21.6pt"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">8,996</FONT></TD></TR>
<TR>
    <TD COLSPAN="3" STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Administrative Expenses</FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: 9.5pt; padding-left: 8.8pt; font-weight: bold; text-align: right; text-indent: 0.65pt"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>(1,175)</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 22.95pt; padding-left: 5.4pt; text-align: right; text-indent: 21.6pt"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">(801)</FONT></TD></TR>
<TR>
    <TD COLSPAN="3" STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Foreign exchange loss</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 9.5pt; padding-left: 8.8pt; font-weight: bold; text-align: right; text-indent: 0.65pt"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>-</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 22.95pt; padding-left: 5.4pt; text-align: right; text-indent: 21.6pt"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">(18)</FONT></TD></TR>
<TR>
    <TD COLSPAN="3" STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>Results from operating activities</B></FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: 9.5pt; padding-left: 8.8pt; font-weight: bold; text-align: right; text-indent: 0.65pt"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>7,872</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 22.95pt; padding-left: 5.4pt; text-align: right; text-indent: 21.6pt"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">8,177</FONT></TD></TR>
<TR>
    <TD COLSPAN="3" STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Net finance income/(expense)</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 9.5pt; padding-left: 8.8pt; font-weight: bold; text-align: right; text-indent: 0.65pt"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>(64)</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 22.95pt; padding-left: 5.4pt; text-align: right; text-indent: 21.6pt"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">(46)</FONT></TD></TR>
<TR>
    <TD COLSPAN="3" STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>Profit before income tax</B></FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: 9.5pt; padding-left: 8.8pt; font-weight: bold; text-align: right; text-indent: 0.65pt"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>7,808</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 22.95pt; padding-left: 5.4pt; text-align: right; text-indent: 21.6pt"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">8,131</FONT></TD></TR>
<TR>
    <TD COLSPAN="3" STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Income Tax expense</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 9.5pt; padding-left: 8.8pt; font-weight: bold; text-align: right; text-indent: 0.65pt"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>(2,278)</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 22.95pt; padding-left: 5.4pt; text-align: right; text-indent: 21.6pt"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">(1,020)</FONT></TD></TR>
<TR>
    <TD COLSPAN="3" STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>Profit for the period</B></FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: 9.5pt; padding-left: 8.8pt; font-weight: bold; text-align: right; text-indent: 0.65pt"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>5,530</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 22.95pt; padding-left: 5.4pt; text-align: right; text-indent: 21.6pt"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">7,111</FONT></TD></TR>
<TR>
    <TD COLSPAN="3" STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Loss on foreign currency translation</FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 9.5pt; padding-left: 8.8pt; font-weight: bold; text-align: right; text-indent: 0.65pt"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>827</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 22.95pt; padding-left: 5.4pt; text-align: right; text-indent: 21.6pt"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">(815)</FONT></TD></TR>
<TR>
    <TD COLSPAN="3" STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>Total comprehensive income for the period</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 9.5pt; padding-left: 8.8pt; font-weight: bold; text-align: right; text-indent: 0.65pt"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>6,357</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 22.95pt; padding-left: 5.4pt; text-align: right; text-indent: 21.6pt"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">6,296</FONT></TD></TR>
<TR>
    <TD COLSPAN="3" STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 21.6pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 9.5pt; padding-left: 8.8pt; font-weight: bold; text-align: justify; text-indent: 0.65pt">&nbsp;</TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 22.95pt; padding-left: 5.4pt; text-align: justify; text-indent: 21.6pt">&nbsp;</TD></TR>
<TR>
    <TD COLSPAN="3" STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>Earnings per share (cents)</B></FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: 9.5pt; padding-left: 8.8pt; font-weight: bold; text-align: justify; text-indent: 0.65pt">&nbsp;</TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 22.95pt; padding-left: 5.4pt; text-align: justify; text-indent: 21.6pt">&nbsp;</TD></TR>
<TR>
    <TD COLSPAN="3" STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 14.2pt; text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Basic </FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: 9.5pt; padding-left: 8.8pt; font-weight: bold; text-align: right; text-indent: 0.65pt"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>0.9</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 22.95pt; padding-left: 5.4pt; text-align: right; text-indent: -1.35pt"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">1.4</FONT></TD></TR>
<TR>
    <TD COLSPAN="3" STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 14.2pt; text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Diluted </FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: 9.5pt; padding-left: 8.8pt; font-weight: bold; text-align: right; text-indent: 0.65pt"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>0.9</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 22.95pt; padding-left: 5.4pt; text-align: right; text-indent: -1.35pt"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">1.4</FONT></TD></TR>
<TR>
    <TD COLSPAN="3" STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: justify; text-indent: 21.6pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 9.5pt; padding-left: 8.8pt; font-weight: bold; text-align: justify; text-indent: 0.65pt">&nbsp;</TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 22.95pt; padding-left: 5.4pt; text-align: center">&nbsp;</TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>Weighted average number of common shares outstanding (thousands) at March 31 </B></FONT></TD>
    <TD COLSPAN="3" STYLE="padding-right: 9.5pt; padding-left: 8.8pt; font-weight: bold; text-indent: 0.65pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; padding-right: 9.5pt; padding-left: 5.4pt; text-align: center; text-indent: 0.65pt">&nbsp;</TD></TR>
<TR>
    <TD COLSPAN="3" STYLE="vertical-align: top; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 14.2pt"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif">Basic </FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: 9.5pt; padding-left: 8.8pt; text-align: right; text-indent: 0.65pt"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">516,419</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 22.95pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">500,169</FONT></TD></TR>
<TR>
    <TD COLSPAN="3" STYLE="vertical-align: top; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 14.2pt; text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif">Diluted </FONT></TD>
    <TD COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 9.5pt; padding-bottom: 4.5pt; padding-left: 8.8pt; text-align: right; text-indent: 0.65pt"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">520,945</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 22.95pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">542,709</FONT></TD></TR>
<TR>
    <TD STYLE="width: 36%">&nbsp;</TD>
    <TD STYLE="width: 17%">&nbsp;</TD>
    <TD STYLE="width: 8%">&nbsp;</TD>
    <TD STYLE="width: 7%">&nbsp;</TD>
    <TD STYLE="width: 12%">&nbsp;</TD>
    <TD STYLE="width: 20%">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 12.1pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 12.1pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 12.1pt 0 0; text-align: center"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD NOWRAP COLSPAN="4" STYLE="border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; font-weight: bold; text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>Condensed Consolidated statements of Financial Position (unaudited)</B></FONT></TD></TR>
<TR>
    <TD STYLE="width: 43%; border-left: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; font-style: italic; font-weight: bold; text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B><I>(In thousands of Canadian dollars) </I></B></FONT></TD>
    <TD STYLE="width: 17%; padding-right: 5.75pt; padding-left: 5.75pt; font-style: italic; font-weight: bold; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B><I>As at</I></B></FONT></TD>
    <TD STYLE="width: 20%; padding-right: 8.4pt; padding-left: 1.35pt; font-weight: bold; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>March 31,</B></FONT></TD>
    <TD STYLE="width: 20%; border-right: windowtext 1pt solid; padding-right: 15.5pt; padding-left: 1.4pt; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">December 31,</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; font-style: italic; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 8.4pt; padding-left: 1.35pt; font-weight: bold; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>2013</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 22.6pt; padding-left: 1.4pt; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">2012</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; font-style: italic; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 8.4pt; padding-left: 1.35pt; font-weight: bold; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>$</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 22.6pt; padding-left: 1.4pt; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">$</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="border-left: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; font-weight: bold; text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>Total non-current assets</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.75pt; padding-left: 5.75pt; font-style: italic; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 8.4pt; padding-left: 1.35pt; font-weight: bold; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>37,950</B></FONT></TD>
    <TD NOWRAP STYLE="border-right: windowtext 1pt solid; padding-right: 22.6pt; padding-left: 1.4pt; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">36,533</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Inventories</FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; font-style: italic; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 8.4pt; padding-left: 1.35pt; font-weight: bold; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>4,893</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 22.6pt; padding-left: 1.4pt; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">5,508</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Prepayments</FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; font-style: italic; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 8.4pt; padding-left: 1.35pt; font-weight: bold; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>146</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 22.6pt; padding-left: 1.4pt; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">126</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Trade and other receivables</FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; font-style: italic; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 8.4pt; padding-left: 1.35pt; font-weight: bold; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>5,206</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 22.6pt; padding-left: 1.4pt; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">1,718</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Cash and cash equivalents</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.75pt; padding-left: 5.75pt; font-style: italic; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 8.4pt; padding-left: 1.35pt; font-weight: bold; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>25,189</B></FONT></TD>
    <TD NOWRAP STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 22.6pt; padding-left: 1.4pt; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">27,942</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; font-weight: bold; text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>Total assets</B></FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; font-style: italic; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt double; padding-right: 8.4pt; padding-left: 1.35pt; font-weight: bold; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>73,384</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1.5pt double; padding-right: 22.6pt; padding-left: 1.4pt; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">71,827</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; font-weight: bold; text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>Total non-current liabilities</B></FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; font-style: italic; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 8.4pt; padding-left: 1.35pt; font-weight: bold; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>6,953</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 22.6pt; padding-left: 1.4pt; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">6,928</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Trade and other payables</FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; font-style: italic; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 8.4pt; padding-left: 1.35pt; font-weight: bold; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>5,456</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 22.6pt; padding-left: 1.4pt; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">5,775</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Zimbabwe advance dividend accrual</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.75pt; padding-left: 5.75pt; font-style: italic; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 8.4pt; padding-left: 1.35pt; font-weight: bold; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>1,018</B></FONT></TD>
    <TD NOWRAP STYLE="border-right: windowtext 1pt solid; padding-right: 22.6pt; padding-left: 1.4pt; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">1,987</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Income taxes payable</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.75pt; padding-left: 5.75pt; font-style: italic; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 8.4pt; padding-left: 1.35pt; font-weight: bold; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>633</B></FONT></TD>
    <TD NOWRAP STYLE="border-right: windowtext 1pt solid; padding-right: 22.6pt; padding-left: 1.4pt; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">1,518</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; font-weight: bold; text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>Total liabilities</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.75pt; padding-left: 5.75pt; font-style: italic; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; padding-right: 8.4pt; padding-left: 1.35pt; font-weight: bold; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>14,060</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; padding-right: 22.6pt; padding-left: 1.4pt; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">16,208</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; font-weight: bold; text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>Capital and reserves</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.75pt; padding-left: 5.75pt; font-style: italic; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 8.4pt; padding-left: 1.35pt; font-weight: bold; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>59,324</B></FONT></TD>
    <TD NOWRAP STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 22.6pt; padding-left: 1.4pt; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">55,619</FONT></TD></TR>
<TR>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; font-weight: bold; text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>Total equity and liabilities</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; font-style: italic; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt double; padding-right: 8.4pt; padding-left: 1.35pt; font-weight: bold; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>73,384</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1.5pt double; padding-right: 22.6pt; padding-left: 1.4pt; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">71,827</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 12.1pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 12.1pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 12.1pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 12.1pt 0 0; text-align: center"><B>&nbsp;</B></P>


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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD NOWRAP COLSPAN="5" STYLE="border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>Condensed Consolidated Statement of Cash
        Flows (unaudited) </B></P>
        <P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify"><B>(In thousands of Canadian dollars)</B></P></TD></TR>
<TR>
    <TD NOWRAP STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-style: italic; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD NOWRAP COLSPAN="4" STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>For the 3 months ended March 31</B></FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 6.65pt; padding-left: 42.75pt; font-weight: bold; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>2013</B></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; padding-right: 31.45pt; padding-left: 32.15pt; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">2012</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 27.9pt; padding-left: 42.75pt; font-weight: bold; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>$</B></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; padding-right: 31.45pt; padding-left: 32.15pt; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">$</FONT></TD></TR>
<TR>
    <TD COLSPAN="2" STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>Cash flows from operating activities</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 27.9pt; padding-left: 42.75pt; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; padding-right: 31.45pt; padding-left: 32.15pt; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD COLSPAN="2" STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Profit for the period</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 27.9pt; padding-left: 5.4pt; font-weight: bold; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>5,530</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; padding-right: 31.45pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">7,111</FONT></TD></TR>
<TR>
    <TD COLSPAN="2" STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Adjustments to reconcile net cash from operations</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 27.9pt; padding-left: 5.4pt; font-weight: bold; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>3,117</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; padding-right: 31.45pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">1,535</FONT></TD></TR>
<TR>
    <TD COLSPAN="2" STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Changes in non-cash working capital</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 27.9pt; padding-left: 5.4pt; font-weight: bold; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>(3,212)</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; padding-right: 31.45pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">405</FONT></TD></TR>
<TR>
    <TD COLSPAN="2" STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Tax paid</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 27.9pt; padding-left: 5.4pt; font-weight: bold; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>(3,163)</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; padding-right: 31.45pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">(875)</FONT></TD></TR>
<TR>
    <TD COLSPAN="2" STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Net finance income/(expense)</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 27.9pt; padding-left: 5.4pt; font-weight: bold; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>(64)</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 31.45pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">(46)</FONT></TD></TR>
<TR>
    <TD COLSPAN="2" STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Net cash from operating activities </FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 27.9pt; padding-left: 5.4pt; font-weight: bold; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>2,208</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; padding-right: 31.45pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">8,130</FONT></TD></TR>
<TR>
    <TD COLSPAN="2" STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 27.9pt; padding-left: 5.4pt; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; padding-right: 31.45pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD COLSPAN="2" STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>Cash flows from investing activities</B></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 27.9pt; padding-left: 5.4pt; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; padding-right: 31.45pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD COLSPAN="2" STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Property, plant and equipment additions</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 27.9pt; padding-left: 5.4pt; font-weight: bold; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>(1,340)</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; padding-right: 31.45pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">(1,098)</FONT></TD></TR>
<TR>
    <TD COLSPAN="2" STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 27.9pt; padding-left: 5.4pt; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; padding-right: 31.45pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD COLSPAN="2" STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>Cash flows from financing activities</B></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 27.9pt; padding-left: 5.4pt; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; padding-right: 31.45pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD COLSPAN="2" STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Bank overdraft increase/(decrease)</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 27.9pt; padding-left: 5.4pt; font-weight: bold; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>-</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; padding-right: 31.45pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">(430)</FONT></TD></TR>
<TR>
    <TD COLSPAN="2" STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Dividend paid</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 27.9pt; padding-left: 5.4pt; font-weight: bold; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>(2,834)</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; padding-right: 31.45pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">-</FONT></TD></TR>
<TR>
    <TD COLSPAN="2" STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Advance dividend paid</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 27.9pt; padding-left: 5.4pt; font-weight: bold; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>(969)</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; padding-right: 31.45pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">-</FONT></TD></TR>
<TR>
    <TD COLSPAN="2" STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">Proceeds from the exercise of options</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 27.9pt; padding-left: 5.4pt; font-weight: bold; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>182</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 31.45pt; padding-left: 5.4pt; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD COLSPAN="2" STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>Net cash used in financing activities</B></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 27.9pt; padding-left: 5.4pt; font-weight: bold; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>(3,371)</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; padding-right: 31.45pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">(430)</FONT></TD></TR>
<TR>
    <TD COLSPAN="2" STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>Net increase/(decrease) in cash and cash equivalents</B></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 27.9pt; padding-left: 5.4pt; font-weight: bold; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>(2,753)</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; padding-right: 31.45pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">6,602</FONT></TD></TR>
<TR>
    <TD COLSPAN="2" STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>Cash and cash equivalents at the beginning of the period</B></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 27.9pt; padding-left: 5.4pt; font-weight: bold; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>27,942</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 31.45pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">9,686</FONT></TD></TR>
<TR>
    <TD COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: justify"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>Cash and cash equivalents at the end of the period</B></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 27.9pt; padding-left: 5.4pt; font-weight: bold; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black"><B>25,189</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 31.45pt; padding-left: 5.4pt; text-align: right"><FONT STYLE="font: 11pt Arial, Helvetica, Sans-Serif; color: black">16,288</FONT></TD></TR>
<TR>
    <TD STYLE="width: 52%">&nbsp;</TD>
    <TD STYLE="width: 9%">&nbsp;</TD>
    <TD STYLE="width: 15%">&nbsp;</TD>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="width: 20%">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 12.1pt 0 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0 12.1pt 0 0; text-align: center"><B></B></P>

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<TYPE>EX-99.2
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<FILENAME>mda.htm
<DESCRIPTION>CALEDONIA MINING CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE QUARTER ENDED MARCH 31, 2013
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     <TITLE>CT Filed by Filing Services Canada Inc. 403-717-3898</TITLE>
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<P STYLE="font: bold 11pt Times New Roman, Times, Serif; margin: 0 0 0 144pt; text-indent: -144pt">CALEDONIA MINING CORPORATION&#9;
&#9; MAY 9, 2013</P>

<P STYLE="font: 11pt/16.15pt Times New Roman, Times, Serif; margin: 0 124.15pt 10pt 0; text-align: justify"><B>Management&rsquo;s
Discussion and Analysis (&ldquo;MD&amp;A&rdquo;)&#9;</B></P>

<P STYLE="font: 11pt/11.55pt Times New Roman, Times, Serif; margin: 0 0 11.5pt; text-align: justify"><I>This discussion and analysis
of the consolidated operating results and financial condition of Caledonia Mining Corporation (&quot;Caledonia&rdquo;) is for the
fiscal quarter ended March 31, 2013 (&ldquo;Q1&rdquo;or the &ldquo;Quarter&rdquo;) and the period until May 9, 2013. It should
be read in conjunction with the unaudited condensed consolidated financial statements as at March 31, 2013 and the Annual Report
for the year ended December 31, 2012, which are available from the System for Electronic Data Analysis and Retrieval at <U>www.sedar.com</U>
or from Caledonia&rsquo;s website at <U>www.caledoniamining.com</U>. The unaudited condensed consolidated financial statements
and related notes have been prepared using accounting policies consistent with International Financial reporting Standards (&ldquo;IFRS&rdquo;).
</I></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Note that all currency references in
this document are to Canadian Dollars unless indicated otherwise. </I></B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify"><B>Contents of the MD&amp;A</B></P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 21.3pt">1.</TD><TD STYLE="text-align: justify">Forward Looking Statements</TD></TR></TABLE>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 21.3pt">2.</TD><TD STYLE="text-align: justify">Overview</TD></TR></TABLE>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 21.3pt">3.</TD><TD STYLE="text-align: justify">Highlights for the Quarter</TD></TR></TABLE>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 21.3pt">4.</TD><TD STYLE="text-align: justify">Summary Financial Results</TD></TR></TABLE>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 21.3pt">5.</TD><TD STYLE="text-align: justify">Operations at the Blanket Gold Mine, Zimbabwe</TD></TR></TABLE>

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<TD STYLE="width: 21.25pt"></TD><TD STYLE="width: 28.4pt">5.1.</TD><TD STYLE="text-align: justify">Safety, Health and Environment</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 21.25pt"></TD><TD STYLE="width: 28.4pt">5.2.</TD><TD STYLE="text-align: justify">Social Investment and Contribution to the Zimbabwean Economy</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 21.25pt"></TD><TD STYLE="width: 28.4pt">5.3.</TD><TD STYLE="text-align: justify">Gold Production</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 21.25pt"></TD><TD STYLE="width: 28.4pt">5.4.</TD><TD STYLE="text-align: justify">Operating Costs</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 21.25pt"></TD><TD STYLE="width: 28.4pt">5.5.</TD><TD STYLE="text-align: justify">Underground</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 21.25pt"></TD><TD STYLE="width: 28.4pt">5.6.</TD><TD STYLE="text-align: justify">Metallurgical Plant</TD></TR></TABLE>

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<TD STYLE="width: 21.25pt"></TD><TD STYLE="width: 28.4pt">5.7.</TD><TD STYLE="text-align: justify">Capital Projects</TD></TR></TABLE>

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<TD STYLE="width: 21.25pt"></TD><TD STYLE="width: 28.4pt">5.8.</TD><TD STYLE="text-align: justify">Mineral Reserves and Resources</TD></TR></TABLE>

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<TD STYLE="width: 21.25pt"></TD><TD STYLE="width: 28.4pt">5.9.</TD><TD STYLE="text-align: justify">Opportunities</TD></TR></TABLE>

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<TD STYLE="width: 21.25pt"></TD><TD STYLE="width: 28.4pt">5.10.</TD><TD STYLE="text-align: justify">Outlook</TD></TR></TABLE>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 21.3pt">6.</TD><TD STYLE="text-align: justify">Exploration and Project Development<FONT STYLE="color: windowtext"><B> </B></FONT></TD></TR></TABLE>

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<TD STYLE="width: 21.25pt"></TD><TD STYLE="width: 28.4pt">6.1.</TD><TD STYLE="text-align: justify">Nama Copper Project, Zambia<FONT STYLE="color: windowtext"><B> </B></FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 21.25pt"></TD><TD STYLE="width: 28.4pt">6.2.</TD><TD STYLE="text-align: justify">Nama Cobalt Project, Zambia</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 21.25pt"></TD><TD STYLE="width: 28.4pt">6.3.</TD><TD STYLE="text-align: justify">Blanket Gold Mine, Zimbabwe</TD></TR></TABLE>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 21.3pt">7.</TD><TD STYLE="text-align: justify">Investing</TD></TR></TABLE>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 21.3pt">8.</TD><TD STYLE="text-align: justify">Financing</TD></TR></TABLE>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 21.3pt">9.</TD><TD STYLE="text-align: justify">Liquidity and Capital Resources</TD></TR></TABLE>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 21.3pt">10.</TD><TD STYLE="text-align: justify">Off-Balance Sheet Arrangement</TD></TR></TABLE>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 21.3pt">11.</TD><TD STYLE="text-align: justify">Related Party Transactions</TD></TR></TABLE>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 21.3pt">12.</TD><TD STYLE="text-align: justify">Critical Accounting Policies</TD></TR></TABLE>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 21.3pt">13.</TD><TD STYLE="text-align: justify">Securities Outstanding</TD></TR></TABLE>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 21.3pt">14.</TD><TD STYLE="text-align: justify">Risks</TD></TR></TABLE>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 21.3pt">15.</TD><TD STYLE="text-align: justify">Controls</TD></TR></TABLE>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 21.3pt">16.</TD><TD STYLE="text-align: justify">Qualified Person</TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">&nbsp;</P>


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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0cm"><B>&nbsp;</B></P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 36pt"><B>1.</B></TD><TD STYLE="text-align: justify"><B>FORWARD LOOKING STATEMENTS</B></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify">This MD&amp;A contains certain forward-looking
statements relating but not limited to Caledonia&rsquo;s expectations, intentions, plans, and beliefs. Forward-looking information
can often be identified by forward-looking words such as &ldquo;anticipate&rdquo;, &ldquo;believe&rdquo;, &ldquo;expect&rdquo;,
&ldquo;goal&rdquo;, &ldquo;plan&rdquo;, &ldquo;intend&rdquo;, &ldquo;estimate&rdquo;, &ldquo;could&rdquo;, &ldquo;should&rdquo;,
&ldquo;may&rdquo; and &ldquo;will&rdquo; or similar words suggesting future outcomes, or other expectations, beliefs, plans, objectives,
assumptions, intentions or statements about future events or performance. Forward-looking information may include reserve and resource
estimates, estimates of future production, unit costs, costs of capital projects and timing of commencement of operations, and
is based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results
to differ materially from any forward-looking statement include, but are not limited to, failure to establish estimated resources
and reserves, the grade and recovery of ore which is mined varying from estimates, capital and operating costs varying significantly
from estimates, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, inflation,
changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and other factors. Forward-looking
statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from expected
results.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Potential shareholders and prospective investors
should be aware that these statements are subject to known and unknown risks, uncertainties and other factors that could cause
actual results to differ materially from those suggested by the forward-looking statements. Shareholders are cautioned not to place
undue reliance on forward-looking information. By its nature, forward-looking information involves numerous assumptions, inherent
risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections
and various future events will not occur. Caledonia undertakes no obligation to update publicly or otherwise revise any forward-looking
information whether as a result of new information, future events or other such factors which affect this information, except as
required by law.</P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 1cm"><B>2.</B></TD><TD STYLE="text-align: justify"><B>OVERVIEW</B></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify">Caledonia is a mining, exploration and
development company focused on Southern Africa. Following the implementation of indigenisation in Zimbabwe, Caledonia&rsquo;s primary
assets are a 49% interest in an operating gold mine in Zimbabwe (&ldquo;Blanket&rdquo; or the &ldquo;Blanket Mine&rdquo;) and a
100% interest in a base metals exploration project in Zambia (the &ldquo;Nama Project&rdquo;). Caledonia&rsquo;s shares are listed
in Canada on the Toronto Stock Exchange as &ldquo;CAL&rdquo;, on London&rsquo;s AIM as &ldquo;CMCL&rdquo; and are also traded on
the American OTCQX as &ldquo;CALVD&rdquo;.</P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 1cm"><FONT STYLE="font-size: 11pt"><B>3.</B></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 11pt"><B>HIGHLIGHTS FOR THE QUARTER </B></FONT></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0cm"><B>Operational Highlights</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 14.2pt"><FONT STYLE="font: 11pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">Gold produced at the Blanket Mine in Zimbabwe
in Q1 was 10,472 ounces, 11% lower than the 11,821 ounces produced in the quarter ended December 31, 2012 (the &ldquo;preceding
quarter&rdquo;) and 14% higher than the 9,164 ounces produced in Q1of 2012 (the &ldquo;comparable quarter&rdquo;). </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 14.2pt"><FONT STYLE="font: 11pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">The lower gold production in the Quarter
compared to the preceding quarter was primarily due to the short accounting period for Quarter which had only 84 working days up
to cut-off for the Quarter on 26th March due to the early incidence of Easter. The daily rate of production achieved during the
Quarter was 10% ahead of planned production and 5% lower than the daily rate of production achieved in the preceding quarter. </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 14.2pt"><FONT STYLE="font: 11pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">Gold production in April 2013 was approximately
4,385 ounces, one-third higher than the targeted monthly production rate of approximately 3,300 ounces of gold. </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 14.2pt"><FONT STYLE="font: 11pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">Average gold recovery in the Quarter was
93.3%, unchanged from that in the preceding quarter (Q1, 2012 &ndash; 93.2%).</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 14.2pt"><FONT STYLE="font: 11pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">Blanket&rsquo;s cash operating costs in
the Quarter increased to US$669 per ounce of gold produced from </FONT></TD></TR></TABLE>


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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0cm">&nbsp;</P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 14.2pt"><FONT STYLE="font: 11pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">US$605 in the preceding quarter. The increase
in cash costs was due to the lower gold production during the Quarter. </FONT></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0cm"><B>Financial Highlights</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 14.2pt"><FONT STYLE="font: 11pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">Gold Sales during the Quarter were 11,964
ounces at an average sales price of $1,601 per ounce of gold, compared, to 10,337 ounces at an average sales price of $1,703 in
the preceding quarter and 10,368 ounces at an average sales price of US$1,688 in the comparable quarter.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 14.2pt"><FONT STYLE="font: 11pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">Gross Profit (i.e. after depreciation and
amortization but before administrative expenses) was $9,047,000 compared to $9,250,000 in the preceding quarter and $8,996,000
in the comparable quarter.</FONT></TD></TR></TABLE>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 14.2pt"><FONT STYLE="font: 11pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">Net profit after tax for the Quarter attributable
to Caledonia shareholders was $4,593,000 compared to $3,353,000 in the preceding quarter and $7,111,000 in the comparable quarter.
Net profit for the Quarter was after non-recurring tax charges totalling approximately $2.0 million.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 14.2pt"><FONT STYLE="font: 11pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">Basic earnings per share for the Quarter
were 0.9 cents per share, compared to 0.6 cents in the preceding quarter and 1.4 cents in the comparable quarter. The earnings
per share numbers do not reflect the consolidation which took place after the end of the Quarter.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 14.2pt"><FONT STYLE="font: 11pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">At March 31, 2013 the Corporation had cash
and cash equivalents of $25,189,000 compared to $27,942,000 at December 31, 2012 and $16,288,000 at March 31, 2012.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 6pt 14.2pt; text-align: justify; text-indent: -14.2pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 6pt">
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 14.2pt"><FONT STYLE="font: 11pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">Cash flow from operations during the Quarter before capital investment was $2,208,000
compared to $8,130,000 in the comparable quarter.</FONT></TD></TR>
</TABLE></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 6pt 14.2pt; text-align: justify; text-indent: -14.2pt"><FONT STYLE="font: 11pt Symbol">&nbsp;
</FONT><FONT STYLE="color: black"> </FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 14.2pt"><FONT STYLE="font: 11pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">During the Quarter Blanket made payments
in respect of direct and indirect taxes, royalties, licence fees, levies and other payments to the Government of Zimbabwe totalling
US$5,860,000 compared to US$5,931,000 in the preceding quarter and US$3,282,000 in the comparable quarter. </FONT></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 14.2pt; text-align: justify; text-indent: 0cm">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0cm"><B>Exploration Highlights
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 6pt 14.2pt; text-align: justify; text-indent: -14.2pt"><FONT STYLE="font: 11pt Symbol">&#183;</FONT><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 11pt">The deep level exploration drilling at the Blanket Mine below 750m Level has commenced. The
first exploration hole into the Blanket Ore Body was completed and intersected mineralisation with a grade of 3.57g/t over 4.70m.
A second hole is now in progress. An additional drilling machine is being refurbished and will be commissioned shortly. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 6pt 14.2pt; text-align: justify; text-indent: -14.2pt"><FONT STYLE="font: 11pt Symbol">&#183;</FONT><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 11pt">Blanket has appointed four new exploration geologists to increase the capacity of its exploration
team. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 6pt 14.2pt; text-align: justify; text-indent: -14.2pt"><FONT STYLE="font: 11pt Symbol">&#183;</FONT><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 11pt">Exploration at Blanket&rsquo;s satellite projects has continued. </FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 3pt; margin-bottom: 3pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 28.35pt"></TD><TD STYLE="width: 14.2pt"><FONT STYLE="font: 11pt Courier New, Courier, Monospace">o</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">At the GG Project the shaft sinking has
reached a depth of 100m below surface. Diamond drilling on the 60m level continued in the Quarter and of the five holes drilled
so far, four have intersected mineralization. Further drilling and tunnel development is in progress to allow for a better understanding
of the geometry of the identified zones. A total of 3,000m of diamond drilling is planned during 2013. </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 3pt; margin-bottom: 3pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 28.35pt"></TD><TD STYLE="width: 14.2pt"><FONT STYLE="font: 11pt Courier New, Courier, Monospace">o</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">At Mascot, underground development towards
the North Parallel Zone appears to be entering the identified mineralised zone. Further development work in this area has paused
and will resume once the rock handling systems have been installed to allow payable development material to be hoisted to surface.
Development towards the South Zone continues and mining of the diamond drilling cubbies will commence soon. If the gold grades
of the exposed mineralized zones prove to be economic, ore from Mascot would be delivered to the main Blanket plant from late 2013.
</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 6pt 14.2pt; text-align: justify; text-indent: -14.2pt"><FONT STYLE="font: 11pt Symbol">&#183;</FONT><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 11pt">At the Nama Copper Project further diamond drilling is being carried out on additional zones
of mineralisation that have been identified to the immediate west and south of the mineralised zone that could extend the copper
resource at depth</FONT> <FONT STYLE="font-size: 11pt">and define an additional zone of copper enrichment near surface. </FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0cm"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0cm"><B>Corporate Highlights</B></P>


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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0cm">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 3pt 14.2pt; text-align: justify; text-indent: -14.2pt"><FONT STYLE="font: 11pt Symbol">&#183;</FONT><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 11pt">The Special Meeting of Caledonia Shareholders held on January 24, 2013 passed special resolutions
approving a reduction of Stated Capital of Caledonia&rsquo;s common shares by $140m and the consolidation (the &ldquo;Consolidation&rdquo;)
of the issued and outstanding common shares of Caledonia on the basis of one post-consolidation common share for every ten common
shares. Pursuant to these resolutions being passed:</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 3pt; margin-bottom: 3pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 28.35pt"></TD><TD STYLE="width: 14.2pt"><FONT STYLE="font: 11pt Courier New, Courier, Monospace">o</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">on February 22, 2013 Caledonia paid its
initial dividend of $0.005 per non-consolidated share; and</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 3pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 28.35pt"></TD><TD STYLE="width: 14.2pt"><FONT STYLE="font: 11pt Courier New, Courier, Monospace">o</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">the Consolidation was implemented with effect
from the start of trading on April 12, 2013.</FONT></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 3pt 0 6pt 42.55pt; text-align: justify; text-indent: 0cm">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0 6pt 7.1pt; text-align: justify; text-indent: 0cm"><B>Dividend
Policy</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 6pt 14.2pt; text-align: justify; text-indent: -14.2pt"><FONT STYLE="font: 11pt Symbol">&#183;</FONT><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 11pt">On April 3, 2013 Caledonia announced a further dividend in respect of the year ended 31 December
2012 of $0.005 per pre-consolidated ordinary share or $0.05 on a post-consolidated basis, which was paid on 30 April 2013.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 6pt 14.2pt; text-align: justify; text-indent: -14.2pt"><FONT STYLE="font: 11pt Symbol">&#183;</FONT><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 11pt">Caledonia will continue to maintain its strong financial position so that it can implement
its stated growth strategy and retain the flexibility to take advantage of any further opportunities that may arise without the
need to raise third party finance. The Caledonia Board will continue to assess further dividend payments at least annually in light
of Caledonia&rsquo;s financial performance and financial resources at that time. </FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 12pt; margin-bottom: 10pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1cm"><B>4.</B></TD><TD STYLE="text-align: justify"><B>SUMMARY FINANCIAL RESULTS </B></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">The table below sets out selected unaudited
condensed consolidated profit and loss for the three months ended March 31, 2013 and 2012.</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD COLSPAN="6" STYLE="border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Condensed Consolidated Statement of Comprehensive
        Income (unaudited)</B></P>
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>(in thousands of Canadian dollars except
        per share amounts)</I></B></P></TD></TR>
<TR>
    <TD COLSPAN="2" STYLE="vertical-align: top; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-bottom: 6pt; padding-left: 5.4pt; font-weight: bold; text-align: justify; text-indent: 21.6pt">&nbsp;</TD>
    <TD COLSPAN="4" STYLE="border-right: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center; text-indent: 21.55pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Three months ended March 31</B></FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; font-weight: bold; text-align: justify; text-indent: 21.6pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 26.45pt 0 30.05pt; text-align: center; text-indent: 14.55pt"><B>2013</B></P>
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 26.45pt 0 30.05pt; text-align: center; text-indent: 14.55pt"><B>$</B></P></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 22.95pt 0 40.7pt; text-align: center">2012</P>
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 22.95pt 0 0; text-align: center; text-indent: 35.05pt">$</P></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Revenue</FONT></TD>
    <TD COLSPAN="3" STYLE="padding-right: 26.15pt; padding-left: 30.05pt; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>19,218</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; padding-right: 22.95pt; padding-left: 30.05pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">17,503</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Royalty</FONT></TD>
    <TD COLSPAN="3" STYLE="padding-right: 26.15pt; padding-left: 30.05pt; font-weight: bold; text-align: right; text-indent: 21.6pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>(1,349)</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; padding-right: 22.95pt; padding-left: 30.05pt; text-align: right; text-indent: 21.6pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">(1,227)</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Production costs</FONT></TD>
    <TD COLSPAN="3" STYLE="padding-right: 26.15pt; padding-left: 30.05pt; font-weight: bold; text-align: right; text-indent: 21.6pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>(8,019)</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; padding-right: 22.95pt; padding-left: 30.05pt; text-align: right; text-indent: 21.6pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">(6,444)</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Depreciation</FONT></TD>
    <TD COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; padding-right: 26.15pt; padding-left: 30.05pt; font-weight: bold; text-align: right; text-indent: 21.6pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>(803)</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 22.95pt; padding-left: 30.05pt; text-align: right; text-indent: 21.6pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">(836)</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Gross profit</B></FONT></TD>
    <TD COLSPAN="3" STYLE="padding-right: 26.15pt; padding-left: 30.05pt; font-weight: bold; text-align: right; text-indent: 21.6pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>9,047</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; padding-right: 22.95pt; padding-left: 30.05pt; text-align: right; text-indent: 21.6pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">8,996</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Administrative Expenses</FONT></TD>
    <TD COLSPAN="3" STYLE="padding-right: 26.15pt; padding-left: 30.05pt; font-weight: bold; text-align: right; text-indent: 21.6pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>(1,175)</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; padding-right: 22.95pt; padding-left: 30.05pt; text-align: right; text-indent: 21.6pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">(801)</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Foreign exchange loss</FONT></TD>
    <TD COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; padding-right: 26.15pt; padding-left: 30.05pt; font-weight: bold; text-align: right; text-indent: 21.6pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>-</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 22.95pt; padding-left: 30.05pt; text-align: right; text-indent: 21.6pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">(18)</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Results from operating activities</B></FONT></TD>
    <TD COLSPAN="3" STYLE="padding-right: 26.15pt; padding-left: 30.05pt; font-weight: bold; text-align: right; text-indent: 21.6pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>7,872</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; padding-right: 22.95pt; padding-left: 30.05pt; text-align: right; text-indent: 21.6pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">8,177</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Net finance income/(expense)</FONT></TD>
    <TD COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; padding-right: 26.15pt; padding-left: 30.05pt; font-weight: bold; text-align: right; text-indent: 21.6pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>(64)</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 22.95pt; padding-left: 30.05pt; text-align: right; text-indent: 21.6pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">(46)</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Profit before income tax</B></FONT></TD>
    <TD COLSPAN="3" STYLE="padding-right: 26.15pt; padding-left: 30.05pt; font-weight: bold; text-align: right; text-indent: 21.6pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>7,808</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; padding-right: 22.95pt; padding-left: 30.05pt; text-align: right; text-indent: 21.6pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">8,131</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Income Tax expense</FONT></TD>
    <TD COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; padding-right: 26.15pt; padding-left: 30.05pt; font-weight: bold; text-align: right; text-indent: 21.6pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>(2,278)</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 22.95pt; padding-left: 30.05pt; text-align: right; text-indent: 21.6pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">(1,020)</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Profit for the period</B></FONT></TD>
    <TD COLSPAN="3" STYLE="padding-right: 26.15pt; padding-left: 30.05pt; font-weight: bold; text-align: right; text-indent: 21.6pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>5,530</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; padding-right: 22.95pt; padding-left: 30.05pt; text-align: right; text-indent: 21.6pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">7,111</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Loss on foreign currency translation</FONT></TD>
    <TD COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; padding-right: 26.15pt; padding-left: 30.05pt; font-weight: bold; text-align: right; text-indent: 21.6pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>827</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 22.95pt; padding-left: 30.05pt; text-align: right; text-indent: 21.6pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">(815)</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Total comprehensive income for the period</B></FONT></TD>
    <TD COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; padding-right: 26.15pt; padding-left: 30.05pt; font-weight: bold; text-align: right; text-indent: 21.6pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>6,357</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 22.95pt; padding-left: 30.05pt; text-align: right; text-indent: 21.6pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">6,296</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 21.6pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 30.05pt; font-weight: bold; text-align: justify; text-indent: 21.6pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; padding-right: 22.95pt; padding-left: 30.05pt; text-align: justify; text-indent: 21.6pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Earnings per share (cents)</B></FONT></TD>
    <TD COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 30.05pt; font-weight: bold; text-align: justify; text-indent: 21.6pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; padding-right: 22.95pt; padding-left: 30.05pt; text-align: justify; text-indent: 21.6pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 14.2pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Basic </FONT></TD>
    <TD COLSPAN="3" STYLE="padding-right: 26.15pt; padding-left: 30.05pt; font-weight: bold; text-align: right; text-indent: -1.35pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>0.9</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; padding-right: 22.95pt; padding-left: 30.05pt; text-align: right; text-indent: -1.35pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">1.4</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 14.2pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Diluted </FONT></TD>
    <TD COLSPAN="3" STYLE="padding-right: 26.15pt; padding-left: 30.05pt; font-weight: bold; text-align: right; text-indent: -1.35pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>0.9</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; padding-right: 22.95pt; padding-left: 30.05pt; text-align: right; text-indent: -1.35pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">1.4</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: justify; text-indent: 21.6pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 30.05pt; font-weight: bold; text-align: justify; text-indent: 21.6pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; padding-right: 22.95pt; padding-left: 19.75pt; text-align: center">&nbsp;</TD></TR>
<TR>
    <TD COLSPAN="3" STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Weighted average number of common shares outstanding (thousands) at March 31 </B></FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: 22.95pt; padding-left: 30.05pt; font-weight: bold; text-align: justify; text-indent: 21.6pt">&nbsp;</TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 22.95pt; padding-left: 19.75pt; text-align: center">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 14.2pt; text-align: justify; text-indent: 0cm; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 11pt">Basic </FONT></TD>
    <TD COLSPAN="3" STYLE="padding-right: 26.15pt; padding-left: 30.05pt; text-align: right; text-indent: -1.35pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">516,419</FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; padding-right: 22.95pt; padding-left: 19.75pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">500,169</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 14.2pt; text-align: justify; text-indent: 0cm; font-family: Times New Roman, Times, Serif"><FONT STYLE="font-size: 11pt">Diluted </FONT></TD>
    <TD COLSPAN="3" STYLE="border-bottom: windowtext 1pt solid; padding-right: 26.15pt; padding-bottom: 4.5pt; padding-left: 30.05pt; text-align: right; text-indent: -1.35pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">520,945</FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 22.95pt; padding-left: 19.75pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">542,709</FONT></TD></TR>
<TR>
    <TD STYLE="width: 52%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 11%">&nbsp;</TD>
    <TD STYLE="width: 13%">&nbsp;</TD>
    <TD STYLE="width: 11%">&nbsp;</TD>
    <TD STYLE="width: 12%">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0cm">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Revenues for the Quarter were higher than the
comparable quarter due largely to the higher production. Production costs were higher in the Quarter as discussed in section 5.4.
Administrative costs for the Quarter were higher than in the comparable quarter due to inter alia increased investor relations
expenses, legal fees and wages and salaries. Administrative expenses are analysed in note 7 to the unaudited condensed consolidated
financial statements. Notwithstanding the lower profit before tax, the income tax charge for the Quarter was higher than the comparable
quarter due to withholding tax of US$1.504 million which was levied on the dividend-in-specie declared by Caledonia Holdings Zimbabwe
(&ldquo;CHZ&rdquo;) to Greenstone Management Services Limited (UK) (&ldquo;GMSUK&rdquo;) is respect of the facilitation loans receivable
from Blanket&rsquo;s indigenous shareholders who have purchased a 41% interest in Blanket. (refer note 5 of the condensed consolidated
financial statements)</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Earnings per share and the weighted average
number of shares outstanding does not reflect the Consolidation which was effected after the end of the Quarter.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The table below sets out the unaudited, condensed
consolidated statement of cash flows for the three months to March 31, 2013 and 2012</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD NOWRAP COLSPAN="3" STYLE="border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Condensed Consolidated Statement of Cash
        Flows (unaudited) </B></P>
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>(In thousands of Canadian dollars)</B></P></TD></TR>
<TR>
    <TD NOWRAP STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-style: italic; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>For the 3 months ended March 31</B></FONT></TD></TR>
<TR>
    <TD STYLE="width: 50%; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 25%; padding-right: 27.9pt; padding-left: 42.75pt; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>2013</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 25%; border-right: windowtext 1pt solid; padding-right: 31.45pt; padding-left: 32.15pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">2012</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 27.9pt; padding-left: 42.75pt; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>$</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; padding-right: 31.45pt; padding-left: 32.15pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Cash flows from operating activities</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 27.9pt; padding-left: 42.75pt; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; padding-right: 31.45pt; padding-left: 32.15pt; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Profit for the period</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 27.9pt; padding-left: 42.75pt; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>5,530</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; padding-right: 31.45pt; padding-left: 32.15pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">7,111</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Adjustments to reconcile net cash from operations</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 27.9pt; padding-left: 42.75pt; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>3,117</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; padding-right: 31.45pt; padding-left: 32.15pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">1,535</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Changes in non-cash working capital</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 27.9pt; padding-left: 42.75pt; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>(3,212)</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; padding-right: 31.45pt; padding-left: 32.15pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">405</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Tax paid</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 27.9pt; padding-left: 42.75pt; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>(3,163)</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; padding-right: 31.45pt; padding-left: 32.15pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">(875)</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Net finance income/(expense)</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 27.9pt; padding-left: 42.75pt; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>(64)</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 31.45pt; padding-left: 32.15pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">(46)</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Net cash from operating activities </FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 27.9pt; padding-left: 42.75pt; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>2,208</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; padding-right: 31.45pt; padding-left: 32.15pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">8,130</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 27.9pt; padding-left: 42.75pt; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; padding-right: 31.45pt; padding-left: 32.15pt; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Cash flows from investing activities</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 27.9pt; padding-left: 42.75pt; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; padding-right: 31.45pt; padding-left: 32.15pt; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Property, plant and equipment additions</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 27.9pt; padding-left: 42.75pt; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>(1,340)</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; padding-right: 31.45pt; padding-left: 32.15pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">(1,098)</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 27.9pt; padding-left: 42.75pt; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; padding-right: 31.45pt; padding-left: 32.15pt; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Cash flows from financing activities</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 27.9pt; padding-left: 42.75pt; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; padding-right: 31.45pt; padding-left: 32.15pt; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Bank overdraft increase/(decrease)</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 27.9pt; padding-left: 42.75pt; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>-</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; padding-right: 31.45pt; padding-left: 32.15pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">(430)</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Dividend paid</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 27.9pt; padding-left: 42.75pt; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>(2,834)</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; padding-right: 31.45pt; padding-left: 32.15pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">-</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Advance dividend paid</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 27.9pt; padding-left: 42.75pt; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>(969)</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; padding-right: 31.45pt; padding-left: 32.15pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">-</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Proceeds from the exercise of options</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 27.9pt; padding-left: 42.75pt; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>182</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 31.45pt; padding-left: 32.15pt; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Net cash used in financing activities</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 27.9pt; padding-left: 42.75pt; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>(3,371)</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; padding-right: 31.45pt; padding-left: 32.15pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">(430)</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Net increase/(decrease) in cash and cash equivalents</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 27.9pt; padding-left: 42.75pt; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>(2,753)</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; padding-right: 31.45pt; padding-left: 32.15pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">6,602</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Cash and cash equivalents at the beginning of the period</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 27.9pt; padding-left: 42.75pt; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>27,942</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 31.45pt; padding-left: 32.15pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">9,686</FONT></TD></TR>
<TR>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; font-weight: bold; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Cash and cash equivalents at the end of the period</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 27.9pt; padding-left: 42.75pt; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>25,189</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 31.45pt; padding-left: 32.15pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">16,288</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The increase in non-cash working capital in
the Quarter was largely due to the increase in the receivable from Rand Refineries in respect of gold sales. At the end of the
previous Quarter, Blanket had no receivable in respect of metal sales, but had a normal receivable at the 31 March 2013. The increased
tax payments in the Quarter reflect the payment of normal quarterly income tax at Blanket US$1.1 million, withholding tax US$1,5
million which was triggered by the declaration by CHZ of the facilitation loans receivables of $30.9 million from Blanket&rsquo;s
indigenous shareholders as a distribution to a wholly-owned</P>


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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0cm">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Caledonia subsidiary outside Zimbabwe and dispute
payments of US$0.5 mill to Zimbabwe Revenue Authority relating to the write-off the Special Tradeable Gold-Backed Foreign Exchange
Bond and which has been disclosed in previous MD&amp;A&rsquo;s. The dividend paid relates to the payment by Caledonia of its initial
dividend in February 2013. The advance dividend was paid to the Gwanda Community Share Ownership Trust (&ldquo;GCSOT&rdquo;) in
terms of the Blanket&rsquo;s indigenisation transaction.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The table below sets out the unaudited, consolidated
statement of Caledonia&rsquo;s financial position at March 31, 2013 and December 31, 2012.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD NOWRAP COLSPAN="4" STYLE="border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; font-weight: bold; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Condensed Consolidated statements of Financial Position (unaudited)</B></FONT></TD></TR>
<TR>
    <TD STYLE="width: 44%; border-left: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; font-style: italic; font-weight: bold; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>(In thousands of Canadian dollars) </I></B></FONT></TD>
    <TD STYLE="vertical-align: top; width: 7%; padding-right: 5.75pt; padding-left: 5.75pt; font-style: italic; font-weight: bold; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>As at</I></B></FONT></TD>
    <TD STYLE="width: 22%; padding-right: 15.5pt; padding-left: 22.6pt; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>March 31,</B></FONT></TD>
    <TD STYLE="width: 27%; border-right: windowtext 1pt solid; padding-right: 29.65pt; padding-left: 22.6pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">December 31,</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; font-style: italic; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 15.5pt; padding-left: 22.6pt; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>2013</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 29.65pt; padding-left: 22.6pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">2012</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; font-style: italic; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 15.5pt; padding-left: 22.6pt; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>$</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 29.65pt; padding-left: 22.6pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="border-left: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; font-weight: bold; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Total non-current assets</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.75pt; padding-left: 5.75pt; font-style: italic; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 15.5pt; padding-left: 22.6pt; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>37,950</B></FONT></TD>
    <TD NOWRAP STYLE="border-right: windowtext 1pt solid; padding-right: 29.65pt; padding-left: 22.6pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">36,533</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Inventories</FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; font-style: italic; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 15.5pt; padding-left: 22.6pt; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>4,893</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 29.65pt; padding-left: 22.6pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">5,508</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Prepayments</FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; font-style: italic; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 15.5pt; padding-left: 22.6pt; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>146</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 29.65pt; padding-left: 22.6pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">126</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Trade and other receivables</FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; font-style: italic; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 15.5pt; padding-left: 22.6pt; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>5,206</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 29.65pt; padding-left: 22.6pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">1,718</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Cash and cash equivalents</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.75pt; padding-left: 5.75pt; font-style: italic; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 15.5pt; padding-left: 22.6pt; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>25,189</B></FONT></TD>
    <TD NOWRAP STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 29.65pt; padding-left: 22.6pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">27,942</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; font-weight: bold; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Total assets</B></FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; font-style: italic; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt double; padding-right: 15.5pt; padding-left: 22.6pt; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>73,384</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1.5pt double; padding-right: 29.65pt; padding-left: 22.6pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">71,827</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; font-weight: bold; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Total non-current liabilities</B></FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; font-style: italic; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 15.5pt; padding-left: 22.6pt; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>6,953</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 29.65pt; padding-left: 22.6pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">6,928</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Trade and other payables</FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; font-style: italic; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 15.5pt; padding-left: 22.6pt; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>5,456</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; padding-right: 29.65pt; padding-left: 22.6pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">5,775</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Zimbabwe advance dividend accrual</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.75pt; padding-left: 5.75pt; font-style: italic; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 15.5pt; padding-left: 22.6pt; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>1,018</B></FONT></TD>
    <TD NOWRAP STYLE="border-right: windowtext 1pt solid; padding-right: 29.65pt; padding-left: 22.6pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">1,987</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Income taxes payable</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.75pt; padding-left: 5.75pt; font-style: italic; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 15.5pt; padding-left: 22.6pt; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>633</B></FONT></TD>
    <TD NOWRAP STYLE="border-right: windowtext 1pt solid; padding-right: 29.65pt; padding-left: 22.6pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">1,518</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; font-weight: bold; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Total liabilities</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.75pt; padding-left: 5.75pt; font-style: italic; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; padding-right: 15.5pt; padding-left: 22.6pt; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>14,060</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; padding-right: 29.65pt; padding-left: 22.6pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">16,208</FONT></TD></TR>
<TR>
    <TD STYLE="border-left: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; font-weight: bold; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Capital and reserves</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.75pt; padding-left: 5.75pt; font-style: italic; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 15.5pt; padding-left: 22.6pt; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>59,324</B></FONT></TD>
    <TD NOWRAP STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 29.65pt; padding-left: 22.6pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">55,619</FONT></TD></TR>
<TR>
    <TD STYLE="border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; font-weight: bold; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Total equity and liabilities</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; font-style: italic; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1.5pt double; padding-right: 15.5pt; padding-left: 22.6pt; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>73,384</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1.5pt double; padding-right: 29.65pt; padding-left: 22.6pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">71,827</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">The following information is provided for each of the eight most
recent quarterly periods ending on the dates specified. The figures are extracted from underlying unaudited financial statements
that have been prepared using accounting policies consistent with IFRS, unless specified below.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-bottom: 4.5pt; padding-left: 8.8pt; text-align: left; text-indent: -8.8pt; font-size: 10pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-size: 10pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Restated <SUP>1</SUP></B></FONT></TD>
    <TD COLSPAN="3" STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm; font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm; font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm; font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm; font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 21.6pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-bottom: 4.5pt; padding-left: 5.4pt; text-align: left; text-indent: 0cm; font-size: 10pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>($000&rsquo;s-except per share amounts)</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right; text-indent: 0cm"><B>June </B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right; text-indent: 0cm"><B>30/11</B></P></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm; font-size: 10pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Sept 30/11</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm; font-size: 10pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Dec 31/11</B></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm; font-size: 10pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Mar 31/12</B></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right; text-indent: 0cm"><B>June </B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right; text-indent: 0cm"><B>30/12</B></P></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm; font-size: 10pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Sept 30/12</B></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm; font-size: 10pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Dec 31/12</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right; text-indent: 0cm"><B>Mar</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right; text-indent: 0cm"><B>31/13</B></P></TD></TR>
<TR>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 0cm; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Revenue from operations</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-size: 9pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">11,990</FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-size: 9pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">16,517</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-size: 9pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">15,972</FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-size: 9pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">17,503</FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-size: 9pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">18,612</FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-size: 9pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">21,494</FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-size: 9pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">17,612</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-size: 9pt; font-weight: bold"><FONT STYLE="font: 9pt Times New Roman, Times, Serif"><B>19,218</B></FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 0cm; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Profit/ (loss) after tax from operations</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-size: 9pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">2,874</FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-size: 9pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">6,126</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-size: 9pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">1,369</FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-size: 9pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">7,111</FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-size: 9pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">5,497</FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-size: 9pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">(9,199)</FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-size: 9pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">3,950</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-size: 9pt; font-weight: bold"><FONT STYLE="font: 9pt Times New Roman, Times, Serif"><B>5,530</B></FONT></TD></TR>
<TR>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 0cm; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Earnings/(loss) per share &ndash; basic (cents)</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-size: 9pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">0.57</FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-size: 9pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">1.23</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-size: 9pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">0.27</FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-size: 9pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">1.4</FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-size: 9pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">1.1</FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-size: 9pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">(1.4)</FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-size: 9pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">0.64</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-size: 9pt; font-weight: bold"><FONT STYLE="font: 9pt Times New Roman, Times, Serif"><B>0.9</B></FONT></TD></TR>
<TR>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 0cm; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Earnings/(loss) per share -diluted (cents)</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-size: 9pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">0.54</FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-size: 9pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">1.13</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-size: 9pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">0.27</FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-size: 9pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">1.4</FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-size: 9pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">1.1</FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-size: 9pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">(1.4)</FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-size: 9pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">0.64</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-size: 9pt; font-weight: bold"><FONT STYLE="font: 9pt Times New Roman, Times, Serif"><B>0.9</B></FONT></TD></TR>
<TR>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 0cm; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Cash and cash equivalents</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-size: 9pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif; color: black">5,033</FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-size: 9pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif; color: black">6,847</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-size: 9pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif; color: black">9,686</FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-size: 9pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif; color: black">16,288</FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-size: 9pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif; color: black">18,323</FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-size: 9pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif; color: black">24,615</FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-size: 9pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">27,942</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-size: 9pt; font-weight: bold"><FONT STYLE="font: 9pt Times New Roman, Times, Serif"><B>25,189</B></FONT></TD></TR>
<TR>
    <TD STYLE="width: 27%">&nbsp;</TD>
    <TD STYLE="width: 9%">&nbsp;</TD>
    <TD STYLE="width: 9%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 9%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 8%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 8%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 8%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 8%">&nbsp;</TD>
    <TD STYLE="width: 9%">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 35.7pt"><I>&nbsp;</I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 17.85pt"></TD><TD STYLE="width: 17.85pt"><I>(1)</I></TD><TD><I>These quarterly figures have been restated to reflect the results having used the same IFRS policies as adopted in the annual
financial statements. Per-share numbers have been re-stated to reflect the 1-10 Consolidation. There is no change to the quarterly
earnings per share for the 2011 quarters.</I></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 36pt">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 36pt">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 36pt">&nbsp;</P>


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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0cm">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 36pt">&nbsp;</P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 1cm"><B>5.</B></TD><TD STYLE="text-align: justify"><B>OPERATIONS AT THE BLANKET GOLD MINE, ZIMBABWE</B></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: bold 11pt Times New Roman, Times, Serif; margin-top: 4pt; margin-bottom: 4pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1cm">5.1</TD><TD STYLE="text-align: justify">Safety, Health and Environment (&ldquo;SHE&rdquo;)</TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 21.6pt">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0cm">The following safety statistics
have been recorded in the Quarter and the preceding 4 quarters.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0cm">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 11pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD COLSPAN="6" STYLE="border: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>Blanket Mine Safety Statistics</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 45%; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>Class</B></FONT></TD>
    <TD STYLE="width: 11%; border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>Q1 2012</B></FONT></TD>
    <TD STYLE="width: 11%; border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>Q2 2012</B></FONT></TD>
    <TD STYLE="width: 11%; border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>Q3 2012</B></FONT></TD>
    <TD STYLE="width: 11%; border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>Q4 2012</B></FONT></TD>
    <TD STYLE="width: 11%; border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>Q1 2013</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">Lost time injury</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">3</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">1</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">0</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">3</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>2</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">Restricted work activity</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">5</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">4</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">7</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">7</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>0</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">First aid</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">1</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">2</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">4</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">5</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>4</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">Medical aid</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">2</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">1</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">1</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">1</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>2</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">Occupational illness</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">1</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">0</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">0</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">0</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>0</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1.5pt solid; border-left: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>Total</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1.5pt solid; border-bottom: windowtext 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>12</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1.5pt solid; border-bottom: windowtext 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>8</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1.5pt solid; border-bottom: windowtext 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>12</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1.5pt solid; border-bottom: windowtext 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">16</FONT></TD>
    <TD STYLE="border-right: windowtext 1.5pt solid; border-bottom: windowtext 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>8</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">Incidents</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">12</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">11</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">11</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">10</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>12</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">Near misses</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">4</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">2</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">3</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">5</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>3</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">Disability Injury Frequency Rate <SUP>(i)</SUP></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">1.23</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">0.30</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">0.00</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">0.81</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>0.52</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">Total Injury Incident Rate <SUP>(ii)</SUP></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">3.72</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">2.38</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">3.04</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">4.34</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>2.09</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">Man-hours worked (thousands)</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">645</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">670</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">688</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">738</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>767</B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0cm">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 36pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><I>&nbsp;</I></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 11pt"><I>i.</I></FONT><I><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 11pt">A measurement of total injuries, deaths and permanent disability occurring per 200,000 man-hours
worked.</FONT></I></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 36pt"><FONT STYLE="font: 7pt Times New Roman, Times, Serif"><I>&nbsp;</I></FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 11pt"><I>ii.</I></FONT><I><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 11pt">A measurement of all accidents that have occurred regardless of injury or not expressed per
200,000 man-hours worked. This includes accidents that could have caused injuries.</FONT></I></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify; text-indent: 0cm"><I>&nbsp;</I></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0cm">The reduction in the total
number of incidents from the levels of the two preceding quarters reflects the continued close attention given to this area by
mine management.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 21.6pt">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0cm">There were no adverse environmental
issues during the Quarter.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0cm">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1cm"><B>5.2</B></TD><TD STYLE="text-align: justify"><B>Social Investment and Contribution to the Zimbabwean Economy</B></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 1cm; text-align: justify; text-indent: -1cm"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0cm">Blanket&rsquo;s investment
in community and social projects which are not directly related to the operation of the mine or the welfare of Blanket&rsquo;s
employees, the payments made to GCSOT in terms of Blanket&rsquo;s indigenisation, and payments of royalties, taxation and other
non-taxation charges taxes to the Government of Zimbabwe and its agencies are set out in the table below.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0cm">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD COLSPAN="6" STYLE="border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: windowtext 1pt solid; border-left: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black"><B>Payments to the community and the Zimbabwe Government (<I>in thousands of US dollars)</I> </B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 19%; border-left: black 1pt solid; border-bottom: windowtext 1pt solid; border-right: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black"><B>Period</B></FONT></TD>
    <TD STYLE="width: 8%; border-bottom: windowtext 1pt solid; border-right: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black"><B>Year</B></FONT></TD>
    <TD STYLE="width: 20%; border-bottom: windowtext 1pt solid; border-right: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black"><B>Community and Social Investment</B></FONT></TD>
    <TD STYLE="width: 15%; border-bottom: windowtext 1pt solid; border-right: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black"><B>Payments to GCSOT</B></FONT></TD>
    <TD STYLE="width: 25%; border-bottom: windowtext 1pt solid; border-right: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black"><B>Payments to Zimbabwe Government</B></FONT></TD>
    <TD STYLE="width: 13%; border-bottom: windowtext 1pt solid; border-right: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black"><B>Total</B></FONT></TD></TR>
<TR>
    <TD STYLE="border-right: windowtext 1pt solid; border-left: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black"><B>TOTAL 2011</B></FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black"><B>2011</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 30.05pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black"><B>306</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black"><B>-</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 37.15pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black"><B>13,614</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 8.8pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black"><B>13,920</B></FONT></TD></TR>
<TR>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black">Quarter 1 </FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black">2012</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 30.05pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black">147</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 37.15pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black">3,353</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 8.8pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black"><B>3,500</B></FONT></TD></TR>
<TR>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black">Quarter 2 </FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black">2012</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 30.05pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black">38</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black">1,000</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 37.15pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black">5,042</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 8.8pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black"><B>6,080</B></FONT></TD></TR>
<TR>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black">Quarter 3 </FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black">2012</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 30.05pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black">108</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black">2,000</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 37.15pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black">6,366</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 8.8pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black"><B>8,474</B></FONT></TD></TR>
<TR>
    <TD STYLE="border-right: windowtext 1pt solid; border-left: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black">Quarter 4 </FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black">2012</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 30.05pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black">123</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 37.15pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black">5,808</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 8.8pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black"><B>5,931</B></FONT></TD></TR>
<TR>
    <TD STYLE="border-right: windowtext 1pt solid; border-left: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black"><B>TOTAL 2012</B></FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black"><B>2012</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 30.05pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black"><B>416</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black"><B>3,000</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 37.15pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black"><B>20,569</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 8.75pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black"><B>23,985</B></FONT></TD></TR>
<TR>
    <TD STYLE="border-right: windowtext 1pt solid; border-left: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black"><B>Quarter 1</B></FONT></TD>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black"><B>2013</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 30.05pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black">5</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black">1,000</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 37.15pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black">4,584</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 8.8pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black">5,860</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 1cm; text-align: justify; text-indent: -1cm"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0cm"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1cm"><B>5.3</B></TD><TD STYLE="text-align: justify"><B>Gold Production </B></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0cm">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0cm">Tonnes milled, average grades,
recoveries and gold produced during the Quarter and April 2013, and the preceding 8 quarters are shown in the table below.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0cm">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0cm">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0cm">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD COLSPAN="7" STYLE="vertical-align: top; border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: windowtext 1pt solid; border-left: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>Blanket Mine Production Statistics</B></FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 21.6pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; width: 21%; border-left: black 1pt solid; border-bottom: windowtext 1pt solid; border-right: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>Period</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 9%; border-bottom: windowtext 1pt solid; border-right: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>Year</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 14%; border-bottom: windowtext 1pt solid; border-right: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0cm"><B>Tonnes Milled</B></P>
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0cm"><B>(t)</B></P></TD>
    <TD STYLE="vertical-align: bottom; width: 14%; border-bottom: windowtext 1pt solid; border-right: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0cm"><B>Gold<BR>
        Head (Feed) Grade</B></P>
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0cm"><B>(g/t)</B></P></TD>
    <TD STYLE="vertical-align: bottom; width: 11%; border-bottom: windowtext 1pt solid; border-right: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>Gold Recovery (%)</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 14%; border-bottom: windowtext 1pt solid; border-right: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0cm"><B>Gold Produced</B></P>
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0cm"><B>(oz)</B></P></TD>
    <TD STYLE="vertical-align: bottom; width: 16%; border-bottom: windowtext 1pt solid; border-right: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>Average sales price per ounce of gold sold (US$/oz)</B></FONT></TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 21.6pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="border-right: windowtext 1pt solid; border-left: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>TOTAL 2010</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>2010</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 8.8pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>153,500</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 19.1pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>3.90</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 4.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>92.0</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 15.9pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>17,707</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 22.95pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>1,273</B></FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 21.6pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">First quarter</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">2011</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 8.8pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">61,437</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 19.1pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">4.02</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 4.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">92.2</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 15.9pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">7,322</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 22.95pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">1,397</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 21.6pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">Second quarter</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">2011</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 8.8pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">60,913</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 19.1pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">4.52</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 4.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">92.9</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 15.9pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">8,226</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 22.95pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">1,512</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 21.6pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">Third quarter</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">2011</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 8.8pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">85,442</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 19.1pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">3.81</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 4.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">93.1</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 15.9pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">9,743</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 22.95pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">1,737</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 21.6pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="border-right: windowtext 1pt solid; border-left: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">Fourth quarter</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">2011</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 8.8pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">90,967</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 19.1pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">3.86</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 4.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">93.4</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 15.9pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">10,533</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 22.95pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">1,681</FONT></TD>
    <TD STYLE="border-bottom: windowtext 2.25pt solid; font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 21.6pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="border-right: windowtext 1pt solid; border-left: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>TOTAL 2011</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>2011</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 8.8pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>298,759</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 19.1pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>4.01</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 4.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>92.9</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 15.9pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>35,826</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 22.95pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>1,577</B></FONT></TD></TR>
<TR>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">First quarter </FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">2012</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 8.8pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">83,353</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 19.1pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">3.67</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 4.4pt 0 0; text-align: center; text-indent: 0cm">93.2</P>
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 4.4pt 0 0; text-align: center; text-indent: 0cm">%</P></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 15.9pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">9,164</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 22.95pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">1,688</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 21.6pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">Second quarter </FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">2012</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 8.8pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">90,315</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 19.1pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">4.24</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 4.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">93.9</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 15.9pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">11,560</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 22.95pt 0 0; text-align: right; text-indent: 0cm">1,599</P>
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 22.95pt 0 0; text-align: right; text-indent: 0cm">&nbsp;</P></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 21.6pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">Third quarter </FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">2012</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 8.8pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">93,049</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 19.1pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">4.59</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 4.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">94.1</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 15.9pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">12,918</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 22.95pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">1,664</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 21.6pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="border-right: windowtext 1pt solid; border-left: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">Fourth quarter</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">2012</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 8.8pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">96,598</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 19.1pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">4.08</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 4.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">93.3</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 15.9pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">11,821</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 22.95pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">1,703</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 21.6pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="border-right: windowtext 1pt solid; border-left: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>Total 2012 </B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>2012</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 8.8pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>363,315</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 19.1pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>4.16</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 4.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>93.7</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 15.9pt 0 0; text-align: right; text-indent: 0cm"><B>45,464</B></P>
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 15.9pt 0 0; text-align: right; text-indent: 0cm"><B>65</B></P></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 22.95pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>1,666</B></FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 21.6pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">First quarter</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">2013</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 8.8pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">86,502</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 19.1pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">4.04</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 4.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">93.3</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 15.9pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">10,472</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 22.95pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">1,593</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 21.6pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">April</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">2013</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 8.8pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">37,018</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 19.1pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">3.96</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 4.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">93.3</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 15.9pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">4,385</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 22.95pt; padding-left: 5.4pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">1,421</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; text-indent: 21.6pt">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0cm"><FONT STYLE="color: black">The
daily rate of production achieved in the Quarter was 10% ahead of target and 5% lower than the daily rate of production achieved
in the preceding quarter. </FONT>After adjusting for the number of days worked in the Quarter, the lower production in the Quarter
was due to the lower feed grade. The average mined ore grade achieved during the Quarter of 4.04 g/t was higher than the target
grade of 3.83g/t but lower than the grades achieved in the previous three quarters. The reduction in grade towards the mine average
was anticipated and has been previously advised in earlier MD&amp;A&rsquo;s.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0cm">Gold production in April
(subject to final confirmation from Rand Refineries) was 33% higher than the targeted average monthly rate of production of 3,300oz.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 1cm; text-align: justify; text-indent: -1cm"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1cm"><B>5.4</B></TD><TD STYLE="text-align: justify"><B>Operating costs</B></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0cm">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0cm">The operating cash costs
per ounce of gold produced during the Quarter and the preceding 4 quarters and for 2011 are set out in the table below.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0cm">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 30%; border: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0cm"><B>&nbsp;</B></P>
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0cm"><B>&nbsp;</B></P></TD>
    <TD STYLE="width: 10%; border-top: windowtext 2.25pt solid; border-right: windowtext 2.25pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0cm"><B>Year</B></P>
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0cm"><B>2011</B></P></TD>
    <TD STYLE="width: 10%; border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0cm">Q1</P>
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0cm">2012</P></TD>
    <TD STYLE="width: 10%; border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0cm">Q2</P>
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0cm">2012</P></TD>
    <TD STYLE="width: 10%; border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0cm">Q3</P>
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0cm">2012</P></TD>
    <TD STYLE="width: 10%; border-top: windowtext 1pt solid; border-right: windowtext 2.25pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0cm">Q4</P>
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0cm">2012</P></TD>
    <TD STYLE="width: 10%; border-top: windowtext 2.25pt solid; border-right: windowtext 2.25pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">Year 2012</FONT></TD>
    <TD STYLE="width: 10%; border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0cm"><B>Q1 </B></P>
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0cm"><B>2013</B></P></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">Labour </FONT></TD>
    <TD STYLE="border-right: windowtext 2.25pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">164</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">179</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">174</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">158</FONT></TD>
    <TD STYLE="border-right: windowtext 2.25pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">192</FONT></TD>
    <TD STYLE="border-right: windowtext 2.25pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">175</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>212</B></FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">Consumables</FONT></TD>
    <TD STYLE="border-right: windowtext 2.25pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">227</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">249</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">197</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">189</FONT></TD>
    <TD STYLE="border-right: windowtext 2.25pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">221</FONT></TD>
    <TD STYLE="border-right: windowtext 2.25pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">212</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>244</B></FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">Electricity (incl. diesel)</FONT></TD>
    <TD STYLE="border-right: windowtext 2.25pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">148</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">161</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">136</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">119</FONT></TD>
    <TD STYLE="border-right: windowtext 2.25pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">129</FONT></TD>
    <TD STYLE="border-right: windowtext 2.25pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">134</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>153</B></FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">Other costs</FONT></TD>
    <TD STYLE="border-right: windowtext 2.25pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">42</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">58</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">40</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">41</FONT></TD>
    <TD STYLE="border-right: windowtext 2.25pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">63</FONT></TD>
    <TD STYLE="border-right: windowtext 2.25pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">50</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>60</B></FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-left: windowtext 1pt solid; border-bottom: windowtext 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>Total direct on-mine costs</B></FONT></TD>
    <TD STYLE="border-right: windowtext 2.25pt solid; border-bottom: windowtext 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>581</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>648</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>547</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>508</B></FONT></TD>
    <TD STYLE="border-right: windowtext 2.25pt solid; border-bottom: windowtext 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">605</FONT></TD>
    <TD STYLE="border-right: windowtext 2.25pt solid; border-bottom: windowtext 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">571</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>669</B></FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">General and administrative costs</FONT></TD>
    <TD STYLE="border-right: windowtext 2.25pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">114</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">153</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">115</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">103</FONT></TD>
    <TD STYLE="border-right: windowtext 2.25pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">111</FONT></TD>
    <TD STYLE="border-right: windowtext 2.25pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">118</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>112</B></FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">Sustaining capital investment</FONT></TD>
    <TD STYLE="border-right: windowtext 2.25pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">193</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">78</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">71</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">58</FONT></TD>
    <TD STYLE="border-right: windowtext 2.25pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">77</FONT></TD>
    <TD STYLE="border-right: windowtext 2.25pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">70</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>69</B></FONT></TD></TR>
</TABLE>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 21.6pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: bottom; width: 30%; border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-left: windowtext 1pt solid; border-bottom: windowtext 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>Inclusive cost before royalty</B></FONT></TD>
    <TD STYLE="width: 10%; border-top: windowtext 1pt solid; border-right: windowtext 2.25pt solid; border-bottom: windowtext 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>895</B></FONT></TD>
    <TD STYLE="width: 10%; border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-bottom: windowtext 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>878</B></FONT></TD>
    <TD STYLE="width: 10%; border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-bottom: windowtext 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>732</B></FONT></TD>
    <TD STYLE="width: 10%; border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-bottom: windowtext 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>669</B></FONT></TD>
    <TD STYLE="width: 10%; border-top: windowtext 1pt solid; border-right: windowtext 2.25pt solid; border-bottom: windowtext 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">741</FONT></TD>
    <TD STYLE="width: 10%; border-top: windowtext 1pt solid; border-right: windowtext 2.25pt solid; border-bottom: windowtext 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">759</FONT></TD>
    <TD STYLE="width: 10%; border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>850</B></FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">Royalty<SUP>(1)</SUP></FONT></TD>
    <TD STYLE="border-right: windowtext 2.25pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">71</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">134</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">112</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">117</FONT></TD>
    <TD STYLE="border-right: windowtext 2.25pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">105</FONT></TD>
    <TD STYLE="border-right: windowtext 2.25pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">116</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>112</B></FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-left: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>Total inclusive cost per ounce</B></FONT></TD>
    <TD STYLE="border-right: windowtext 2.25pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>966</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>1,012</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>844</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>786</B></FONT></TD>
    <TD STYLE="border-right: windowtext 2.25pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">846</FONT></TD>
    <TD STYLE="border-right: windowtext 2.25pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">875</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 2.25pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>962</B></FONT></TD></TR>
<TR>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">Gold ounces produced</FONT></TD>
    <TD STYLE="border-right: windowtext 2.25pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>35,826</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">9,164</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">11,560</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">12,918</FONT></TD>
    <TD STYLE="border-right: windowtext 2.25pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">11,821</FONT></TD>
    <TD STYLE="border-right: windowtext 2.25pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">45,465</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>10,472</B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0cm">The average cost per ounce
of gold produced is sensitive to the amount of gold produced and input costs such as labour, consumables, etc. The 10.5% increase
in cash costs per ounce of gold produced from the preceding quarter was due to the 11% decrease in gold production from Q4 of 2012.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0cm">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1cm"><B>5.5</B></TD><TD STYLE="text-align: justify"><B>Underground</B></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0cm">The AR South ore body
continued to be the most important production area during the Quarter, providing 41% of total ore milled. The balance of production
came from the Lima, Eroica and AR Main ore bodies.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0cm">The table below sets
out the development activities in the Quarter</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD COLSPAN="7" STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-top: 6pt; padding-bottom: 6pt; text-align: justify; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>Blanket Mine: Development Activities in Q1 2013 </B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-top: 6pt; padding-bottom: 6pt; text-align: justify; text-indent: 0cm; font-weight: bold">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-top: 6pt; padding-bottom: 6pt; text-align: justify; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>Area</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-top: 6pt; padding-bottom: 6pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>Budget Advance (m)</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-top: 6pt; padding-bottom: 6pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>Actual Advance (m)</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-top: 6pt; padding-bottom: 6pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>Metres on reef</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-top: 6pt; padding-bottom: 6pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>Payable metres sampled</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-top: 6pt; padding-bottom: 6pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>Payable width (m)</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-top: 6pt; padding-bottom: 6pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>Payable grade (g/t)</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-top: 6pt; padding-bottom: 6pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>Pay-ability (%)</B></FONT></TD></TR>
<TR>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">AR Main </FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">564</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">397</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">320</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">210</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">2.4</FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">3.13</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">52.9</FONT></TD></TR>
<TR>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">AR South</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">140</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">161</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">98</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">82</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">3.2</FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">3.32</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">50.9</FONT></TD></TR>
<TR>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">Eroica</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">210</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">90</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">86</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">78</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">1.6</FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">3.06</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">86.2</FONT></TD></TR>
<TR>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">Blanket Quartz Reef</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">-</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">19</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">-</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">-</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">-</FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">-</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">-</FONT></TD></TR>
<TR>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">Blanket/Feudal</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">138</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">126</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">111</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">98</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">1.5</FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">4.05</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">77.2</FONT></TD></TR>
<TR>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">Lima</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">140</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">138</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">99</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">50</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">1.4</FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">3.55</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">35.9</FONT></TD></TR>
<TR>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: left; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>Total </B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>1,192</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>932</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>714</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>517</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>2.1</B></FONT></TD>
    <TD COLSPAN="2" STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>3.36</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>55.5</B></FONT></TD></TR>
<TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="width: 70px">&nbsp;</TD>
    <TD STYLE="width: 70px">&nbsp;</TD>
    <TD STYLE="width: 70px">&nbsp;</TD>
    <TD STYLE="width: 63px">&nbsp;</TD>
    <TD STYLE="width: 8px">&nbsp;</TD>
    <TD STYLE="width: 70px">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0cm">The shortfall in mine
development against plan in the Quarter was mainly due to continued air compressor breakdowns. A new 6,695 cfm air compressor has
been ordered and is expected to be installed and commissioned during early Q3 2013. Management believes the planned development
will allow ore production to be sustained at the average target rate of 1,000 tonnes per day (tpd) increasing to 1,200tpd in 2014
and 1,300tpd in 2015.</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0">
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1cm"><B>5.6</B></TD><TD STYLE="text-align: justify"><B>Metallurgical Plant</B></TD></TR>
</TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0cm"><B></B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0cm">During the Quarter the
metallurgical plant operated at better than budgeted efficiency. All equipment operated to expectations and no significant unplanned
downtime was experienced during the Quarter. Plans are at an advanced stage to increase the size of the coarse and fine ore stockpiles
and their related conveyor systems and primary crushers to handle the scheduled increased run of mine production from Blanket from
early 2014.</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0">
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1cm"><B>5.7</B></TD><TD STYLE="text-align: justify"><B>Capital Projects</B></B></TD></TR>
</TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0cm"><B></B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0cm"><B>750m AR &ndash; Lima
Haulage<U> </U></B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0cm">The 22 Level Haulage
Extension Project will link the Blanket and Lima ore bodies on 22 Level and will also allow for the further down-dip exploration
of the Blanket Mine&rsquo;s known ore bodies. Work on the 22 Level Haulage Extension Project and its associated crosscuts is being
carried out simultaneously with normal mining production with its completion anticipated for mid-2014. This haulage will also allow
for the rapid commencement of mining in any new mining areas defined above 750m.</P>


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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0cm">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0cm">During the Quarter the
22 Level Haulage was advanced by 123m (110m in the preceding quarter) against a plan of 140m and has a further 923m to be completed.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0cm">Crosscuts on the 22 Level
Haulage are now being excavated to provide the required drilling platforms from which the ore bodies below the 22 Level can be
drilled for resource evaluation purposes. The crosscut to address the downward extension of the AR South ore body has been re-equipped
and a drilling machine is currently being refurbished and will soon be commissioned to commencing drilling. The mining of the crosscut
to address AR Main ore body is in progress and is approximately 50m from its planned destination. It is anticipated that drilling
from this crosscut will commence during the third quarter. The underground exploration drilling of the ore zones below 750m Level,
which will be undertaken from the completed crosscuts, will continue into 2014 and beyond.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0cm"><B>630m Haulage </B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0cm">The 18 Level Haulage
extension will allow access to explore for the extension of the Sheet ore body between 630m and 510m. The haulage was advanced
by 35m in the Quarter (22m in the preceding quarter) and has reached its destination. Diamond drilling to identify a possible down-dip
extension to the Sheet ore body has commenced.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0cm">Some exploration drilling
of known ore bodies below 750m will also be carried out from 18 Level, in addition to the exploration from 22 Level. The first
exploration hole into the Blanket ore body below 750m from a crosscut on 18 Level has been completed and made an intersection
with a grade of 3.57g/t over 4.70m. A second hole is now in progress.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0cm"><B>510 Eroica-Lima Haulage</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0cm">The 14 Level Haulage
was advanced by 136m in the Quarter (121m in the preceding quarter) against a plan of 140m and has reached the Lima ore body. Development
work will commence on the Lima ore body between 230m and 510m levels. This production section is expected to add an additional
daily 200 tonnes of ore production from early 2014 at the average mine grade of 3.84 g/t.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0cm"><B>No. 6 Winze Project
</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0cm">This project will provide
access to the Blanket ore body below 22 Level by deepening the existing No. 6 Winze. An existing Double Drum Winder is currently
being upgraded and refurbished and will be installed in a new winder chamber which has already been excavated on 18 Level. Utilising
the winder currently installed on 14 level, the shaft is being be widened from 120m above 22 level to accommodate the tipping station
for the two x 3 tonne ore skips, and the shaft will then be sunk down to 1,080m with stations and main haulage levels being developed
on 870m (26 Level) and 1,000m (30 Level) and with the skip loading station at 1060m. Ore and development waste will then be hoisted
up the No. 6 winze to 22 Level where it will be tipped into the No 4 shaft system for crushing and hoisting to surface via the
No 4 Shaft. The pre-production capital cost of this project is estimated to be US$3.0 million, which will be funded from Blanket&rsquo;s
internal cash flows.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0cm">Work on this project
has commenced: the hoist chamber on 18 Level has been excavated; the shaft has been slyped 45m below collar on 18 Level; and the
tip raise has been excavated 15m above the tramming level which will be 22 Level.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0cm">It is expected that this
project will be completed in late 2015. Once complete, management expects that production from the Blanket ore body below 22 Level
will progressively increase to approximately 600 tonnes of ore per day. This production will be in addition to the continued target
production from other areas of Blanket mine of 1,300 tonnes of ore per day from early 2015.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0cm"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0">
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1cm"><B>5.8</B></TD><TD STYLE="text-align: justify"><B>Mineral Reserves
and Resource</TD></TR>
</TABLE></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0cm"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0cm">An independent mineral reserve
and resource report for the Blanket Mine calculated as at 31<SUP>st</SUP> December 2010 was prepared by The MSA Group, as the independent
qualified person, in compliance with Canadian National Instrument 43-101, and was published during the second quarter of 2011 and
is available on the company&rsquo;s website and on SEDAR at www.sedar.ca and is also set out in the Q1 2012 MD&amp;A. An updated
internal calculation of Blanket&rsquo;s reserves and resources as at December 31st 2012 has been prepared by Blanket&rsquo;s
Technical Department following the standards and procedures required by NI 43-101.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0cm">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0cm">&nbsp;</P>


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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0cm">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0cm"> The Mineral Reserves and Resources calculations
have been reviewed by Dr Pearton, Caledonia&rsquo;s Qualified Person and the results are presented in the Q4 2012 MD&amp;A. Further
NI 43-101 reports are expected to be issued from time to time in order to disclose the results of ongoing operations and exploration
work which is expected to result in significant additions to the reserves and resources.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 21.6pt"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 21.6pt"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 21.6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0">
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1cm"><B>5.9</B></TD><TD STYLE="text-align: justify"><B>Opportunities</TD></TR>
</TABLE></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0cm"><B> </B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 7.1pt"></TD><TD STYLE="width: 14.2pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Indigenisation: following the implementation of the indigenisation agreements in Q3 of 2012, Blanket,
as a fully indigenised entity and with new strategic indigenous shareholders, may be able to take advantage of growth opportunities
that could arise.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 7.1pt"></TD><TD STYLE="width: 14.2pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Increased production: Blanket&rsquo;s existing reserves and resources could support a further increase
in production provided the necessary investments in the resource development can be made.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 7.1pt"></TD><TD STYLE="width: 14.2pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Surplus capacity: The mine currently has a daily average mining capacity of about 1,000 tonnes
per day; the crushing and milling plant has the capacity to process approximately 1,800 tonnes of ore per day increasing to approximately
2,900tpd after the planned crushing and milling plant extensions have been completed; and the CIL plant has capacity of 3,800 tonnes
per day. Any immediate increase in mine production of compatible ore could therefore be processed with little or no plant capital
cost.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 7.1pt"></TD><TD STYLE="width: 14.2pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify">Exploration success: Blanket&rsquo;s main exploration objectives are the 22 Level Haulage Project
and the related exploration of the down-dip extensions of the known ore bodies and the satellite exploration projects at GG and
the Mascot Project Area. Depending on future exploration success, Blanket may be able to increase its targeted production levels
from those set out in 5.5 and 5.7.</TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0 6pt 35.45pt; text-align: justify; text-indent: 0cm">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0">
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1cm"><B>5.10</B></TD><TD STYLE="text-align: justify"><B>Outlook</TD></TR>
</TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0cm"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0cm">Production in Q1 of 10,470
ounces of gold reflects production for 84 working days due the early cut-off for the Quarter. Production for the Quarter was approximately
12% ahead of the targeted daily production. 4,385 ounces of gold were produced in April, which was 33% higher than targeted average
monthly production. Blanket is currently on-track to achieve the 2013 production target of 40,000 ounces of gold.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0cm">The surplus capacity
of the Blanket leach section and crushing and milling plant enables it to immediately treat additional feed material if the planned
exploration and development work is successful and if any resultant ore is compatible with Blanket&rsquo;s existing metallurgical
process. With the planned increase in crushing and milling rates to approximately 3,000tpd, the Blanket metallurgical plant could
treat the planned increase in production from Blanket and any compatible ore from the satellite projects if they become ore producers.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0cm">There is upward pressure
on costs, taxes and regulatory fees in Zimbabwe. Nevertheless, Blanket has surplus metallurgical plant capacity and is sufficiently
cash generative and is investing in projects with a view to further increasing production, thereby helping to maintain downward
pressure on the cost per ounce of gold produced.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0cm">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1cm"><B>6.</B></TD><TD STYLE="text-align: justify"><B>EXPLORATION AND PROJECT DEVELOPMENT</B></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1cm"><B>6.1</B></TD><TD STYLE="text-align: justify"><B>Nama Copper Project, Zambia</B></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify">Caledonia holds four, contiguous large
scale mining licenses covering approximately 800 square kilometres on the Zambian Copperbelt. The northern boundary of Caledonia&rsquo;s
licenced area is the Democratic Republic of Congo border and the eastern boundary abuts the Lubambe mining licence area that is
held by a joint venture between Vale and African Rainbow Minerals where a new copper mine has recently been commissioned.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify">The 2011 drilling programme identified
an apparently contiguous zone of mineralisation, which was confirmed by the 2012 drilling programme. A program of percussion drilling
was performed in 2013 with the objectives of improving resource definition
close to surface and to establish whether there is potential for an open-pit operation.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0cm">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify">The preliminary results of the 2013 percussion
drilling suggests that the near-surface oxide material will not support an economic open-pit copper operation. Further diamond
drilling will be carried out on additional zones of mineralisation that have been identified to the immediate west and south of
the mineralised zone that could extend the copper resource at depth.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify">The Zambian Mines Development Department
(the &ldquo;Department&rdquo;) has confirmed that it requires a report on the copper resource at Nama by 30 June 2013, which will
be prepared to meet the Department&rsquo;s requirements.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1cm"><B>6.2</B></TD><TD STYLE="text-align: justify"><B>Nama Cobalt Project, Zambia</B></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify">Caledonia has undertaken to commence cobalt
production by June 30 2013. Caledonia has submitted a proposal to the Department for a cobalt mining operation on the following
basis:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 14.2pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Identified resource to be mined: approximately
2 million tonnes grading approximately 0.2% cobalt and 0.1% copper;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 14.2pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Phase 1: mining at a target rate of approximately
30,000 tonnes per month to produce cobalt oxide concentrate using gravity separation;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 14.2pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">Phase 2: mining at a target rate of approximately
60,000 tonnes per month to produce cobalt hydroxide using hydrometallurgical processing; and</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 14.2pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">The estimated capital investment to achieve
mine start-up and to complete phase 1 is approximately US$1.1million. </FONT></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify">The commencement of pre-production work
can commence once the Department has approved the Environment Impact Assessment which has been submitted.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0 6pt 1cm; text-align: justify; text-indent: -1cm"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1cm"><B>6.3</B></TD><TD STYLE="text-align: justify"><B>Gold: Zimbabwe </B></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify">Caledonia&rsquo;s primary exploration activities
in Zimbabwe are at the Blanket Mine, which are discussed in Section 5.7. Blanket Mine also has exploration title holdings in the
form of registered mining claims in the Gwanda Greenstone Belt totalling 78 claims, including a small number under option, covering
an area of about 2,500 hectares. Blanket&rsquo;s main exploration efforts on its satellite properties are focused at this stage
on the GG prospect and the Mascot Project Area, which are believed to have the greatest potential of success and which are both
within an economic trucking distance of the Blanket plant.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify">Depending on the successful outcome of
exploration work and mining development, ore extracted from GG and the Mascot Project Area which is compatible with the Blanket
metallurgical plant will be trucked to the Blanket plant for processing. The Blanket Mine metallurgical plant has existing surplus
treatment capacity and when the planned crushing and milling plant extensions have been completed, could handle approximately 1,900
tonnes per day of additional ore.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify"><B>GG Project </B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify">The GG project comprises a brownfield former
open cast operation which is located approximately 7km south east of Blanket Mine.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify">Surface drilling programs were carried
out at GG over the past eight years. Seventeen diamond-cored holes were drilled amounting to 4,751 metres of drilling. Two zones
of potentially economic gold mineralization have been established down to a depth of approximately 200m, each with a strike length
of approximately 150 metres.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify">During the Quarter the station at 90m below
surface was completed after which shaft sinking resumed and the shaft has now reached a depth of 100m below surface. As noted in
the previous MD&amp;A, the shaft has traversed a mineralized &ldquo;pod&rdquo; with grades of between 2g/t and 6g/t. Diamond drilling
on the 60m level continued during the Quarter and four of the five holes drilled so far have intersected mineralization. Further
diamond drilling is in progress to allow for a better understanding of the geometry of the identified</P>


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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0cm">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify">zones. A total of 3,000m of diamond drilling
is planned from three development levels during 2013. Approximately 400 metres of development will be required to expose the extent
of the mineralization on all three levels for evaluation purposes.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify"><B>Mascot Project Area</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify"><B><I>Mascot</I></B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify">Mascot was previously mined down to approximately
300 metres, exploiting an ore body which narrowed continuously with depth. The decrease in the extent of the mined out ore at depth
is thought to have been the result of limitations on mining localised low ore grades and thereby not exposing the full extent of
the mineralized zone. Previous surface drilling undertaken by Blanket has indicated the existence of two further mineralised zones,
to the north and south of the mined out area.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify">During the 2<SUP>nd</SUP> quarter of 2012,
following the installation of the ZESA electricity connection, surface infrastructure was installed, the shaft was re-accessed
down to the 120 metre level below surface and was found to be in reasonably good condition. During the 3<SUP>rd</SUP> quarter of
2012 work focussed on re-equipping the shaft. Underground lateral development commenced in November 2012 simultaneously on 1 and
2 levels towards the two new mineralised identified by Blanket&rsquo;s previous surface drilling.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify">Development towards the north zone appears
to be entering the identified mineralised zone. Development waste was dumped into mined-out stopes, however as development material
now registers appreciable gold grades, this material should be hoisted to surface for stockpiling. Further development work towards
the North Zone has paused and will resume when handling systems have been installed in the main shaft to allow the payable development
material to be hoisted to surface.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify">Development towards the South Zone continues
and will soon be in a position where mining of the diamond drilling cubbies can commence.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify">If the gold grades of the exposed mineralized
zones prove to be economic, stockpiled development ore from Mascot would be trucked to the main Blanket plant commencing in late
2013.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify"><B><I>Eagle Vulture</I></B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify">Work at Eagle Vulture was suspended during
the Quarter due to relatively disappointing results. Labour and drilling equipment have been transferred from Eagle Vulture to
Mascot 60m level and to the No.6 Winze development at Blanket where it is believed there are better short term prospects. Further
geological investigations will be carried out at Eagle Vulture in due course.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify"><B>Sabiwa</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify">Site preparation at Sabiwa continued during
the Quarter. The ZESA power installation is approximately 50% complete and shaft sinking is expected to commence during the second
quarter.</P>

<P STYLE="font: 11pt Arial, Helvetica, Sans-Serif; margin: 6pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1cm"><B>7.</B></TD><TD STYLE="text-align: justify"><B>INVESTING </B></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify">During the Quarter Caledonia invested $1,340,000
($1,098,000 &ndash; 2012) in capital assets and work on its mineral properties. Of the amount invested in the Quarter $189,000
($119,000 &ndash; 2012) was spent at Nama and $1,148,000 ($975,000 &ndash; 2012) at Blanket.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0 6pt 21.3pt; text-align: justify; text-indent: -21.3pt"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1cm"><B>8.</B></TD><TD STYLE="text-align: justify"><B>FINANCING </B></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify">Caledonia<FONT STYLE="color: windowtext">
financed its operations using funds on hand and those generated by the Blanket Mine. Blanket has a US$2.5 million loan facility
in Zimbabwe on which it pays interest at 30-day LIBOR plus 8 per cent and which is used from time-to-time for working capital purposes.
The facility is unsecured and is renewable and repayable in demand. At 31March 2013, this facility was unutilised.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify">During the Quarter share options for 2,600,000
options were exercised raising $182,000. No other equity fundraising took place in the Quarter and none is currently planned.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify">&nbsp;</P>


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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0cm">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1cm"><B>9.</B></TD><TD STYLE="text-align: justify"><B>LIQUIDITY AND CAPITAL RESOURCES </B></TD></TR></TABLE>

<P STYLE="font: 11pt/11.55pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify">An analysis of the sources and
uses of Caledonia&rsquo;s cash is set out the Unaudited Consolidated Statement of Cash Flows set out in Section 4. As of March
31, 2013, Caledonia had working capital of $28,327,000 ($26,014,000 &ndash; December 31, 2012). As of March 31, 2013 Caledonia
had potential liabilities for rehabilitation work on the Blanket and Eersteling Mines - if and when those Mines are permanently
closed - at an estimated cost of $1,040,000 ($1,758,000 &ndash; 2012).</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1cm"><B>10.</B></TD><TD STYLE="text-align: justify"><B>OFF BALANCE SHEET ARRANGEMENTS</B></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify">There are no off balance sheet arrangements
apart from the facilitation loans of US$30.529 million which are not reflected as loans for IFRS purposes (refer note 5 of the
condensed consolidated financial statements).</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0 6pt 1cm; text-align: justify; text-indent: -1cm"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1cm"><B>11.</B></TD><TD STYLE="text-align: justify"><B>RELATED PARTY TRANSACTIONS</B></TD></TR></TABLE>

<P STYLE="font: 11pt/12pt Times New Roman, Times, Serif; margin: 6pt 0 6pt 1cm; text-align: justify; text-indent: -21.25pt">Caledonia
had the following related party transactions:</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; padding-top: 6pt; padding-bottom: 6pt; text-align: justify; text-indent: 21.6pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 6pt; padding-left: 6pt">
        <P STYLE="font: 11pt/12pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: center; text-indent: 0cm"><B>Three months ended</B></P>
        <P STYLE="font: 11pt/12pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: center; text-indent: 0cm"><B>March 31</B></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 74%; border-right: windowtext 1pt solid; padding-top: 6pt; padding-bottom: 6pt; text-align: justify; text-indent: 1.1pt">&nbsp;</TD>
    <TD STYLE="width: 14%; border-bottom: windowtext 1pt solid; border-right: windowtext 1pt solid; padding-top: 6pt; padding-bottom: 6pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>2012</B></FONT></TD>
    <TD STYLE="width: 12%; border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-top: 6pt; padding-bottom: 6pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">2011</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-top: 6pt; padding-bottom: 6pt; text-align: justify; text-indent: 0cm">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-top: 6pt; padding-bottom: 6pt; text-align: right; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>$&rsquo;000</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-top: 6pt; padding-bottom: 6pt; text-align: right; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">$&rsquo;000</FONT></TD></TR>
<TR>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-top: 6pt; padding-bottom: 6pt; text-align: left; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">Management fees, and expense allowances paid or accrued to a company which provides the services of the Corporation&rsquo;s President</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-top: 6pt; padding-bottom: 6pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>151</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-top: 6pt; padding-bottom: 6pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">153</FONT></TD></TR>
<TR>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-top: 6pt; padding-bottom: 6pt; text-align: left; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">Rent paid to a Company owned by members of the President&rsquo;s family</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-top: 6pt; padding-bottom: 6pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>10</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-top: 6pt; padding-bottom: 6pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">11</FONT></TD></TR>
<TR>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-top: 6pt; padding-bottom: 6pt; text-align: left; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">Legal fees paid to a law firm where a Director is a partner</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-top: 6pt; padding-bottom: 6pt; text-align: center; text-indent: 0cm; font-weight: bold"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>48</B></FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-top: 6pt; padding-bottom: 6pt; text-align: center; text-indent: 0cm"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">40</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 21.6pt">&#9;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/12pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1cm"><B>12.</B></TD><TD STYLE="text-align: justify"><B>CRITICAL ACCOUNTING POLICIES</B></TD></TR></TABLE>

<P STYLE="font: 11pt/12pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify">The major areas where accounting estimates
are made are asset impairment, asset retirement obligations, share based payments, functional currency determination and future
tax liabilities. Discussion of the bases on which these judgements have been made is set in note 3 to the Unaudited Consolidated
Financial Statement. As significant impairment provisions have already been made against certain assets and there is a reasonable
level of certainty around the estimate it is considered unlikely that any change in estimate would result in a material impact
on the results of Caledonia.</P>

<P STYLE="font: 11pt/12pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/12pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1cm"><B>13.</B></TD><TD STYLE="text-align: justify"><B>SECURITIES OUTSTANDING</B></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0">As at May 07, 2013 the following securities were outstanding:</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 156.5pt 6pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/11.55pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 18pt"></TD><TD STYLE="width: 36pt">(1)</TD><TD STYLE="text-align: justify">52,117,946 common shares issued;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/11.55pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 18pt"></TD><TD STYLE="width: 36pt">(2)</TD><TD STYLE="text-align: justify">Options as follows:</TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 18%; border: black 1pt solid; padding-top: 6pt; padding-bottom: 6pt; font-weight: bold; text-align: center"></TD></TR>
</TABLE>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 21.6pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 21.6pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><TR><TD STYLE="width: 18%; border: black 1pt solid; padding-top: 6pt; padding-bottom: 6pt; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Number</B></FONT></TD>
    <TD STYLE="width: 35%; border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; padding-top: 6pt; padding-bottom: 6pt; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Description</B></FONT></TD>
    <TD STYLE="width: 16%; border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; padding-top: 6pt; padding-bottom: 6pt; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Exercise Price</B></FONT></TD>
    <TD STYLE="width: 31%; border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; padding-top: 6pt; padding-bottom: 6pt; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Expiry Date</B></FONT></TD></TR></TABLE>


<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 18%; border: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: left; text-indent: 0cm">81,000</P>
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: left; text-indent: 0cm">&nbsp;</P>
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: left; text-indent: 0cm">&nbsp;</P>
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: left; text-indent: 0cm">&nbsp;</P>
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: left; text-indent: 0cm">&nbsp;</P>
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: left; text-indent: 0cm">Xx,xxx,xxx</P></TD>
    <TD STYLE="width: 35%; border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; padding-top: 6pt; padding-bottom: 6pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Common share purchase options</FONT></TD>
    <TD STYLE="width: 16%; border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; padding-top: 6pt; padding-bottom: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">$0.07</FONT></TD>
    <TD STYLE="width: 31%; border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; padding-top: 6pt; padding-bottom: 6pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Various until May 11, 2016</FONT></TD></TR>
<TR>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; padding-top: 6pt; padding-bottom: 6pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">930,920</FONT></TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; padding-top: 6pt; padding-bottom: 6pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Common share purchase options</FONT></TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; padding-top: 6pt; padding-bottom: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">$0.09</FONT></TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; padding-top: 6pt; padding-bottom: 6pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">August 31, 2017</FONT></TD></TR>
<TR>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; padding-top: 6pt; padding-bottom: 6pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">1,646,000</FONT></TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; padding-top: 6pt; padding-bottom: 6pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Common share purchase options</FONT></TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; padding-top: 6pt; padding-bottom: 6pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">$0.13</FONT></TD>
    <TD STYLE="border-right: black 1pt solid; border-bottom: black 1pt solid; padding-top: 6pt; padding-bottom: 6pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">January 31, 2016</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify">As Caledonia&rsquo;s Option Plan allows
the granting of options on a number of shares equal to 10% of the issued shares, Caledonia could grant options on a further 2,553,874
shares.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0cm"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0cm"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0">
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1cm"><B>5.6</B></TD><TD STYLE="text-align: justify"><B>Metallurgical Plant</B></TD></TR>
</TABLE></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0cm"><B>14. RISKS</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0cm">Caledonia&rsquo;s business
contains significant additional risks due to the jurisdictions in which it operates and the nature of mining, exploration and development.
Included in the risk factors below are details of how management seeks to mitigate the risks where this is possible.</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 14.2pt"><FONT STYLE="font: 11pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>Liquidity risk:</B> The Company needs
to generate capital to be able to continue to invest in properties and projects without raising third party financing. Caledonia
currently has significant cash resources and continues to generate sufficient cash to cover all of its anticipated investment needs.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 14.2pt"><FONT STYLE="font: 11pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>Exploration Risk</B>: The Company needs
to identify new resources to replace ore which has been depleted by mining activities and to commence new project. Blanket has
embarked on exploration programmes as set out in sections 5.7 and 6.3. Caledonia is also engaged in exploration at Nama as set
out in section 6.1. No assurance can be given that exploration will be successful in identifying sufficient mineral resources of
an adequate grade and suitable metallurgical characteristics that are suitable for further development or production. </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 14.2pt"><FONT STYLE="font: 11pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 11pt Times New Roman, Times, Serif; color: black"><B>Development Risk</B>: The
Company is engaged in development activities at Blanket Mine and its Satellite properties </FONT>and may also commence development
at the Nama project in respect of potential cobalt and copper operations. Construction and development of projects where minerals
are identified is subject to numerous risks: obtaining equipment, permits and services, changes in regulations, currency rate changes,
financing risk, labour shortages, changes in metal prices and the loss of community support. There can be no assurance that construction
will commence or continue in accordance with the current expectations or at all.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 14.2pt"><FONT STYLE="font: 11pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>Production Estimates</B>: Estimates for
future production are based on mining plans and are subject to change. Production estimates are subject to risk and no assurance
can be given that future production estimates will be achieved. Actual production may vary from estimated production for a variety
of reasons including un-anticipated changes grades and tonnages and geological conditions, accident and equipment breakdown, changes
in metal prices and the cost and supply of inputs and changes to government regulations. </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 14.2pt"><FONT STYLE="font: 11pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>Mineral Rights:</B> The Company&rsquo;s
existing licences and permits are in good standing. The Company has to pay fees etc. to maintain its rights and licence. No assurance
can be given that the Company will be able to make payments by the required date or will meet development and production schedules
that are required to protect licences. </FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 14.2pt"><FONT STYLE="font: 11pt Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>Mineral Prices: </B>The Company&rsquo;s
operations and exploration and development projects are heavily influenced by the prices of gold, copper and cobalt. The price
of gold in particular is subject to fluctuation and cannot be predicted. Company has not adopted any strategies to control the
effect of mineral price fluctuations. The continued work at Nama will be influenced by prevailing and forecast prices of copper
and cobalt. </FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 6pt 14.2pt; text-align: justify; text-indent: -14.2pt"><FONT STYLE="font: 11pt Symbol">&#183;</FONT><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 11pt; color: black"><B>Increasing input costs</B></FONT>: Mining companies generally have experienced
higher costs of steel, reagents, labour and electricity and from local and national government for levies, fees, royalties and
other direct and indirect taxes. For example the Zimbabwean gold mining royalty tax rate was increased from 4% to 7% of gold sales
in January 2012. As a low-cost operator, Blanket is well-positioned to withstand any further increases in input costs. In addition,
Blanket&rsquo;s planned growth should allow the fixed cost component to be absorbed over increased production, thereby helping
to alleviate somewhat the effect of any further price increases.</P>


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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0cm"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 6pt 14.2pt; text-align: justify; text-indent: -14.2pt"><FONT STYLE="font: 11pt Symbol">&#183;</FONT><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 11pt"><B>Illegal mining</B>: There has been an increase in illegal mining activities on properties
controlled by Blanket. This gives rise to increased security costs and an increased risk of theft and damage to equipment. Blanket
has received adequate support and assistance from the Zimbabwean police in investigating such cases. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0 6pt 14.2pt; text-align: justify; text-indent: -14.2pt"><FONT STYLE="font: 11pt Symbol">&#183;</FONT><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><FONT STYLE="font-size: 11pt"><B>Succession planning</B>: The limited availability of mining and other technical skills
and experience in Zimbabwe and the difficulty of attracting appropriately skilled employees to Zimbabwe creates a risk that appropriate
skills may not be available if, for whatever reason, the current skills base at the Blanket Mine is depleted. The Caledonia management
team is small and will need to be augmented to provide for appropriate succession planning. </FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 14.2pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 11pt Times New Roman, Times, Serif"><B>Country risk</B>: The commercial environments
in which the Company operates is unpredictable.&nbsp; Potential risks may arise from unforeseen changes in government policies
and regulations relating to exploration and mining activity, military repression and civil disorder, all or any of which may have
a material adverse effect on operations and/or the ability of Caledonia to receive payments.&nbsp; Management believes that it
has minimised such risks by complying fully with all relevant legislation and by obtaining all relevant regulatory permissions
and approvals.</FONT></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0cm"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0cm"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0">
<TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 1cm"><B>5.6</B></TD><TD STYLE="text-align: justify"><B>Metallurgical Plant</B></TD></TR>
</TABLE></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0cm"><B>15. CONTROLS</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0cm">Disclosure controls and
procedures are designed to provide reasonable assurance that all relevant information is gathered and reported to senior Management,
including the Corporation's President and Chief Financial Officer, on a timely basis so that appropriate decisions can be made
regarding public disclosure. Management of the Corporation, with the participation of the Chief Executive Officer and the Chief
Financial Officer, have evaluated the effectiveness of the Corporation's disclosure controls and procedures as at March 31, 2012,
as required by Canadian securities laws pursuant to the certification requirements of Multilateral Instrument 52-109. Internal
controls have been implemented at the Blanket mine to ensure compliance with the requirements of Sarbannes-Oxley.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0cm">The Corporation's internal
controls over financial reporting (&ldquo;ICFR&rdquo;) are intended to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external purposes in accordance with IFRS.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0cm">Because of its inherent
limitations, the Corporation's ICFR may not prevent or detect any or all misstatements. Also, projections of any evaluation of
effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or
that the degree of compliance with the policies or procedures may deteriorate.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0cm">The Corporation previously
engaged independent consultants in 2010 to carry out an assessment of the effectiveness of its internal controls over financial
reporting using an internationally acceptable framework. Prior to this engagement, Management concluded that the following disclosable
weaknesses existed and still remain.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0cm"><B>Segregation of Duties</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0cm">Due to limited personnel
resources at the Corporation&rsquo;s Africa office in Johannesburg, adequate segregation of duties within the accounting group
was not achieved. This created a risk that inaccurate entries could be made and not identified or corrected on a timely basis.
The result is that the Corporation was highly reliant on the performance of mitigating procedures during its financial close processes
in order to ensure the financial statements are presented fairly in all material respects. The Corporation continues to enhance
and monitor this process to ensure that its financial accounting reporting system is able to prevent and detect potentially significant
errors.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0cm">Additional accounting
staff have been recruited to the Corporation&rsquo;s Africa office in Johannesburg and an internal audit function has been added
at the Blanket Mine in Zimbabwe. This has improved but not entirely eliminated the deficiency in the segregation of duties and
lightened the work load of existing staff and improved control of the accounting function.</P>


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<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: left; text-indent: 0cm">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0cm">Management has concluded,
and the Audit Committee has agreed, that the hiring of additional staff to correct segregation of duties weakness and excessive
workloads needs to be addressed at this time. There have been no changes in the Corporation&rsquo;s internal controls over financial
reporting since the year ended December 31, 2012, that have materially affected, or are reasonably likely to materially affect,
its internal controls over financial reporting.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0cm">The Corporation has a
Disclosure Committee consisting of three Directors, and has disclosure controls and procedures which it follows in an attempt to
ensure that it complies with all required disclosures on an adequate and timely basis. The Corporation&rsquo;s Directors and Management,
and the Disclosure Committee, are making all reasonable efforts to ensure that the Corporation&rsquo;s disclosures are made in
full compliance with all of the applicable rules, regulations and requirements. All reasonable efforts are also being made to ensure
that the Corporation&rsquo;s disclosure controls and procedures provide reasonable assurance that material information relating
to the Corporation, including its consolidated subsidiaries, is made known to the Corporation&rsquo;s Certifying Officers by others
within those entities.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0cm">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 6pt; margin-bottom: 6pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 42.55pt"><B>16.</B></TD><TD STYLE="text-align: justify"><B>QUALIFIED PERSONS</B></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: justify; text-indent: 0cm">Dr. Trevor Pearton, <FONT STYLE="color: #333333">BSc
Eng (Mining Geology), PhD (Geology) FGSSA,</FONT> VP Exploration is the Corporation&rsquo;s qualified person as defined by NI 43-101.
Dr. Pearton is responsible for the technical information provided on this MD&amp;A except where otherwise stated.</P>



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<DOCUMENT>
<TYPE>EX-99.3
<SEQUENCE>4
<FILENAME>fin.htm
<DESCRIPTION>INTERIM FINANCIAL STATEMENTS FOR THE QUARTER ENDED MARCH 31, 2013
<TEXT>
<HTML>
<HEAD>
     <TITLE>CT Filed by Filing Services Canada Inc. 403-717-3898</TITLE>
</HEAD>
<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="margin: 0"></P>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 0"></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0 0 0 4.5pt"><FONT STYLE="font-size: 14pt"><B>Caledonia Mining Corporation</B></FONT></P>



<P STYLE="margin-top: 0; margin-bottom: 0"></P>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; background-color: black; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 100%; border: windowtext 1pt solid; font: 12pt/115% Shruti; padding-top: 4pt; padding-bottom: 4pt; color: white"><FONT STYLE="font: 12pt/115% Shruti,sans-serif; color: white">MANAGEMENT&rsquo;S RESPONSIBILITY FOR FINANCIAL INFORMATION</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify"><B>To the Shareholders of Caledonia
Mining Corporation:</B></P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">Management has prepared the information
and representations in this interim report. The Unaudited Condensed Consolidated Financial Statements of Caledonia Mining Corporation
(&ldquo;Company&rdquo;) have been prepared in conformity with International Financial Reporting Standards (&ldquo;IFRS&rdquo;)
and in accordance with International Accounting Standard 34 (&ldquo;IAS 34&rdquo;) Interim Financial Reporting, where appropriate,
these statements include some amounts that are based on best estimates and judgment. Management have determined such amounts on
a reasonable basis in order to ensure that the Unaudited Condensed Consolidated Financial Statements are presented fairly, in all
material respects.</P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">Financial information used elsewhere
is consistent with that in the Unaudited Condensed Consolidated Financial Statements. The Management Discussions and Analysis (MD&amp;A)
also includes information regarding the impact of current transactions and events, sources of liquidity and capital resources,
operating trends, risks and uncertainties. Actual results in the future may differ materially from our present assessment of this
information because future events and circumstances may not occur as expected.</P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">The Company maintains adequate
systems of internal accounting and administrative controls, consistent with reasonable cost. Such systems are designed to provide
reasonable assurance that relevant and reliable financial information is produced.</P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">Management have concluded that
as a result of the relatively small size of the Company&rsquo;s head office finance department personnel, the Internal Controls
over Financial Reporting (&ldquo;ICFR&rdquo;) assessment concluded that there were limited resources to adequately segregate duties
and to permit or necessitate the comprehensive documentation of all policies and procedures that form the basis of an effective
design of ICFR. Despite the limited resources no material weaknesses in ICFR exist.</P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">In order to mitigate the risk of
material misstatement in the Company&rsquo;s Unaudited Condensed Consolidated Financial Statements, the Company implemented additional
cash flow review and monitoring controls at head office carried out on a monthly basis. As part of their monitoring and oversight
role the Audit Committee performs additional analysis and other post-closing procedures. No material exceptions were noted based
on the additional procedures and no evidence of fraudulent activity was found.</P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">The Board of Directors, through
its Audit Committee, is responsible for ensuring that management fulfils its responsibilities for financial reporting and internal
control. The Audit Committee is composed of four independent directors. This Committee meets periodically with management and the
external auditor to review accounting, auditing, internal control and financial reporting matters.</P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-align: justify">These Condensed Consolidated Financial
Statements have not been reviewed by the Company&rsquo;s auditors.</P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">The Unaudited Condensed Consolidated Financial Statements
for the period ended March 31, 2013 were approved by the Board of Directors and signed on its behalf on May 9, 2013.</P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 50%"><FONT STYLE="font-size: 10pt">(Signed) S. E. Hayden</FONT></TD>
    <TD STYLE="width: 50%"><FONT STYLE="font-size: 10pt">&#9;(Signed) S. R. Curtis</FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD><FONT STYLE="font-size: 10pt">President and Chief Executive Officer</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Vice-President, Finance and Chief Financial Officer</FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"></P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"></P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">&#9;&#9;</P>


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<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: Black 1.5pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->




<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt">&nbsp;</P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt"><FONT STYLE="font-size: 14pt"><B>Caledonia Mining
Corporation</B></FONT></P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD COLSPAN="9" STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt">
        <P STYLE="font: 14pt/normal Times New Roman, Times, Serif; margin: 0"><B>Condensed consolidated statements of comprehensive income
        (loss)</B></P>
        <P STYLE="font: 14pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"><B>&nbsp;</B></P></TD>
    <TD STYLE="padding-bottom: 10pt; line-height: 115%; font-family: Calibri, Helvetica, Sans-Serif">&nbsp;</TD></TR>
<TR>
    <TD COLSPAN="9" STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-style: italic"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><I>(expressed in thousands of Canadian dollars except for earnings per share amounts)</I></FONT></TD>
    <TD STYLE="padding-bottom: 10pt; line-height: 115%; font-family: Calibri, Helvetica, Sans-Serif">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-style: italic"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><I>For the three months ended March 31,</I></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-style: italic">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="padding-bottom: 10pt; line-height: 115%; font-family: Calibri, Helvetica, Sans-Serif">&nbsp;</TD></TR>
<TR>
    <TD COLSPAN="2" STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-style: italic; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Unaudited</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD COLSPAN="4" STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-style: italic; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-style: italic; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B><I>Note</I></B></FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>2013</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">2012</FONT></TD></TR>
<TR>
    <TD COLSPAN="4" STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-style: italic; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD></TR>
<TR>
    <TD COLSPAN="4" STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-style: italic; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD></TR>
<TR>
    <TD COLSPAN="4" STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Revenue</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-style: italic; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>19,218</B></FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">17,503</FONT></TD></TR>
<TR>
    <TD COLSPAN="4" STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Less: Royalty</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-style: italic; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>1,349</B></FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">1,227</FONT></TD></TR>
<TR>
    <TD COLSPAN="4" STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Production costs</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-style: italic; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><I>6</I></FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>8,019</B></FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">6,444</FONT></TD></TR>
<TR>
    <TD COLSPAN="4" STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Depreciation</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-style: italic; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>803</B></FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">836</FONT></TD></TR>
<TR>
    <TD COLSPAN="4" STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Gross profit</B></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-style: italic; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="border-top: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>9,047</B></FONT></TD>
    <TD STYLE="border-top: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="border-top: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">8,996</FONT></TD></TR>
<TR>
    <TD COLSPAN="4" STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-style: italic; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: justify">&nbsp;</TD></TR>
<TR>
    <TD COLSPAN="4" STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Administrative expenses</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-style: italic; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><I>7</I></FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>1,175</B></FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">801</FONT></TD></TR>
<TR>
    <TD COLSPAN="4" STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Foreign exchange loss</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-style: italic; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>-</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">18</FONT></TD></TR>
<TR>
    <TD COLSPAN="4" STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Results from operating activities</B></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>7,872</B></FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">8,177</FONT></TD></TR>
<TR>
    <TD COLSPAN="4" STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Finance income</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-style: italic; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>67</B></FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD></TR>
<TR>
    <TD COLSPAN="4" STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Finance cost</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-style: italic; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>(131)</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(46)</FONT></TD></TR>
<TR>
    <TD COLSPAN="4" STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Net finance (costs)/income</B></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-style: italic; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>(64)</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(46)</FONT></TD></TR>
<TR>
    <TD COLSPAN="4" STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Profit before income tax</B></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-style: italic; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>7,808</B></FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">8,131</FONT></TD></TR>
<TR>
    <TD COLSPAN="4" STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-style: italic; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: justify">&nbsp;</TD></TR>
<TR>
    <TD COLSPAN="4" STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Income and other tax expense</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-style: italic; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><I>8</I></FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>2,278</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">1,020</FONT></TD></TR>
<TR>
    <TD COLSPAN="4" STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Profit for the period</B></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-style: italic; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>5,530</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">7,111</FONT></TD></TR>
<TR>
    <TD COLSPAN="4" STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Other comprehensive (loss)/income</B></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-style: italic; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD COLSPAN="4" STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Items that are or may be reclassified subsequently to profit or loss</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-style: italic; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD COLSPAN="4" STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Foreign currency translation differences for foreign operations</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-style: italic; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>827</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(815)</FONT></TD></TR>
<TR>
    <TD COLSPAN="4" STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Other comprehensive income for the period, net of income tax</B></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-style: italic; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>827</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(815)</FONT></TD></TR>
<TR>
    <TD COLSPAN="4" STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Total comprehensive income for the period</B></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-style: italic; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>6,357</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">6,296</FONT></TD></TR>
<TR>
    <TD COLSPAN="4" STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Profit/(loss) attributable to:</B></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: justify">&nbsp;</TD></TR>
<TR>
    <TD COLSPAN="4" STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Shareholders of the Company</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>4,593</B></FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">7,111</FONT></TD></TR>
<TR>
    <TD COLSPAN="4" STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Non-controlling interests</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>937</B></FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD></TR>
<TR>
    <TD COLSPAN="4" STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Profit for the year</B></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>5,530</B></FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">7,111</FONT></TD></TR>
<TR>
    <TD COLSPAN="4" STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Total comprehensive income attributable to:</B></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: justify">&nbsp;</TD></TR>
<TR>
    <TD COLSPAN="4" STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Shareholders of the Company</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>5,530</B></FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">6,296</FONT></TD></TR>
<TR>
    <TD COLSPAN="4" STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Non-controlling interests</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>827</B></FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD></TR>
<TR>
    <TD COLSPAN="4" STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Total comprehensive income for the period</B></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>6,357</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">6,296</FONT></TD></TR>
<TR>
    <TD COLSPAN="4" STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Earnings per share </B></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-style: italic; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD COLSPAN="2" STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Basic earnings per share</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-style: italic; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>0.009</B></FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">0.014</FONT></TD></TR>
<TR>
    <TD COLSPAN="2" STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Diluted earnings per share</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-style: italic; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>0.009</B></FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">0.014</FONT></TD></TR>
<TR>
    <TD STYLE="width: 47%">&nbsp;</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="width: 6%">&nbsp;</TD>
    <TD STYLE="width: 6%">&nbsp;</TD>
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="width: 16%">&nbsp;</TD>
    <TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 10%">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt">&nbsp;</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">The accompanying notes on pages 6 to 20 are an integral
part of these condensed consolidated interim financial statements.</P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt">&nbsp;</P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>


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<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt"></P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt"><FONT STYLE="font-size: 14pt"><B>Caledonia Mining
Corporation</B></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD NOWRAP COLSPAN="4" STYLE="padding-right: -32.75pt; line-height: 115%; font-size: 14pt; font-weight: bold"><FONT STYLE="font: 14pt Times New Roman, Times, Serif; color: black"><B>Condensed consolidated statements of financial position</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP COLSPAN="3" STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-style: italic"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><I>(expressed in thousands of Canadian dollars)</I></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-style: italic; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Unaudited</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>March 31,</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">December
    31,</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-style: italic"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><I>As at </I></FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-style: italic; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B><I>Note</I></B></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>2013</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">2012</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Assets</B></FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Property, plant and equipment</FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-style: italic; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><I>9</I></FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>37,888</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">36,471</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Deferred tax asset</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-style: italic; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>62</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">62</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Total non-current assets</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>37,950</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">36,533</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Inventories</FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-style: italic; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><I>10</I></FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>4,893</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">5,508</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Prepayments</FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>146</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">126</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Trade and other receivables</FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-style: italic; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><I>11</I></FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>5,206</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">1,718</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Cash and cash equivalents</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>25,189</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">27,942</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Total current assets</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>35,434</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">35,294</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Total assets</B></FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1.5pt double; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>73,384</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1.5pt double; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">71,827</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Equity and liabilities</B></FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Share capital</FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-style: italic; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><I>12</I></FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>57,319</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">197,137</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Reserves</FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>154,614</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">13,677</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Accumulated deficit </FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>(151,390)</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(153,399)</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Equity attributable to shareholders</FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-style: italic; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>60,543</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">57,415</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Non-controlling interest</FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>(1,219)</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(1,796)</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Total equity</B></FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>59,324</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">55,619</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Liabilities</B></FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Provisions</FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-style: italic; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>1,040</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">1,015</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Deferred tax liability</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-style: italic; text-align: center">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>5,913</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">5,913</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Total non-current liabilities</B></FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>6,953</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">6,928</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Trade and other payables</FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-style: italic; text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>5,456</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">5,775</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Zimbabwe advance dividend accrual</FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-style: italic; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><I>5</I></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>1,018</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">1,987</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Income taxes payable</FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>633</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">1,518</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Total current liabilities</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-top: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>7,107</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; border-top: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">9,280</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Total liabilities</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-top: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>14,060</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; border-top: windowtext 1pt solid; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">16,208</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Total equity and liabilities</B></FONT></TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-top: windowtext 1pt solid; border-bottom: windowtext 1.5pt double; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>73,384</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; border-top: windowtext 1pt solid; border-bottom: windowtext 1.5pt double; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">71,827</FONT></TD></TR>
<TR>
    <TD STYLE="width: 46%">&nbsp;</TD>
    <TD STYLE="width: 6%">&nbsp;</TD>
    <TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 14%">&nbsp;</TD>
    <TD STYLE="width: 10%">&nbsp;</TD>
    <TD STYLE="width: 9%">&nbsp;</TD>
    <TD STYLE="width: 12%">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">The accompanying notes on pages 6 to 20 are an integral
part of these condensed consolidated interim financial statements.</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0">On behalf of the Board:</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0">&ldquo;S.E. Hayden&rdquo;
Director</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0">&ldquo;Robert W. Babensee&rdquo;
Director</P>


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<P STYLE="font: 14pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><B>Caledonia Mining
Corporation</B></FONT></B></P>

<P STYLE="font: 14pt/normal Times New Roman, Times, Serif; margin: 0"><B>Condensed consolidated statements of changes in equity</B></P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>(expressed
in thousands of Canadian dollars</I></FONT><I>)&#9;</I></P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt"><I>&nbsp;</I></P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt"><I>&nbsp;</I></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse" width="100%">
<TR>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 11pt; font-weight: bold"></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 11pt; font-weight: bold; text-align: right"></TD>
    <TD STYLE="vertical-align: bottom; line-height: 115%; font-size: 11pt; font-weight: bold; text-align: right; border-left: 1 solid #000000; border-right: 1 solid #000000; border-top: 1pt solid #000000; padding-left: 5.4pt; padding-right: 5.4pt" colspan="4">
      <p align="center"><font size="2">Reserves</font></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 11pt; font-weight: bold; text-align: right"></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 11pt; font-weight: bold; text-align: right"></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 11pt; font-weight: bold; text-align: right"></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 11pt; font-weight: bold; text-align: right"></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 11pt; font-weight: bold"><font size="2">&nbsp;</font></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 11pt; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black" size="2"><B>Share capital</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-top: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 11pt; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black" size="2"><B>Investment Revaluation Reserve</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-top: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 11pt; font-weight: bold; text-align: right">
      <p style="word-spacing: 0; line-height: 100%; margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black" size="2"><B>Trans-lation reserve</B></FONT></p>
    </TD>
    <TD STYLE="vertical-align: bottom; border-top: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 11pt; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black" size="2"><B>Contributed Surplus</B></FONT></TD>
    <TD STYLE="border-top: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0"><B><font size="2">&nbsp;</font></B></P>
        <P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0; text-align: right"><B><font size="2">Share based payment reserve</font></B></P></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 11pt; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black" size="2"><B>Accumulated deficit</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 11pt; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black" size="2"><B>Total</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 11pt; font-weight: bold; text-align: right">
      <p style="word-spacing: 0; line-height: 100%; margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black" size="2"><B>Non-</B></FONT></p>
      <p style="word-spacing: 0; line-height: 100%; margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black" size="2"><B>controlling interest</B></FONT></p>
      <p style="word-spacing: 0; line-height: 100%; margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black" size="2"><B>&nbsp;(NCI)</B></FONT></p>
    </TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 11pt; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black" size="2"><B>Total Equity</B></FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; width: 30%; padding-right: 5.4pt; padding-left: 5.4pt; font: 11pt/115% Calibri, Helvetica, Sans-Serif"><font size="2">&nbsp;&nbsp;</font></TD>
    <TD STYLE="vertical-align: bottom; width: 7%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 11pt; font-weight: bold; text-align: right"><font size="2">&nbsp;</font></TD>
    <TD STYLE="vertical-align: bottom; width: 9%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 11pt; font-weight: bold; text-align: right"><font size="2">&nbsp;</font></TD>
    <TD STYLE="vertical-align: bottom; width: 9%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 11pt; font-weight: bold; text-align: right"><font size="2">&nbsp;</font></TD>
    <TD STYLE="vertical-align: top; width: 5%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 11pt; font-weight: bold; text-align: right"><font size="2">&nbsp;</font></TD>
    <TD STYLE="vertical-align: bottom; width: 7%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 11pt; font-weight: bold; text-align: right"><font size="2">&nbsp;</font></TD>
    <TD STYLE="vertical-align: bottom; width: 10%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 11pt; font-weight: bold; text-align: right"><font size="2">&nbsp;</font></TD>
    <TD STYLE="vertical-align: bottom; width: 6%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 11pt; font-weight: bold; text-align: right"><font size="2">&nbsp;</font></TD>
    <TD STYLE="vertical-align: bottom; width: 8%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 11pt; font-weight: bold; text-align: right"><font size="2">&nbsp;</font></TD>
    <TD STYLE="vertical-align: bottom; width: 6%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 11pt; font-weight: bold; text-align: right"><font size="2">&nbsp;</font></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 11pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black" size="2">Balance at December 31, 2011</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">196,163</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">5</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">(1,139)&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">-</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">3,407</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">(158,422)&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">40,014</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">-</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">40,014</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 11pt"><font size="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Comprehensive income for the period</FONT>&nbsp;</font></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><font size="2">&nbsp;</font></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><font size="2">&nbsp;</font></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">(815)</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><font size="2">&nbsp;</font></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><font size="2">&nbsp;</font></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">7,111</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">6,296</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">-</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">6,296</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 11pt"><font size="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Balance at March 31, 2012</FONT>&nbsp;</font></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">196,163</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">5</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">(1,954)</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">-</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">3,407</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">(151,311)</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">46,310</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">-</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">46,310</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 11pt; font-weight: bold"><font size="2">&nbsp;</font></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><font size="2">&nbsp;</font></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><font size="2">&nbsp;</font></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><font size="2">&nbsp;</font></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><font size="2">&nbsp;</font></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><font size="2">&nbsp;</font></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><font size="2">&nbsp;</font></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><font size="2">&nbsp;</font></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><font size="2">&nbsp;</font></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><font size="2">&nbsp;</font></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 11pt; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black" size="2"><B>Balance at December 31, 2012</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><B><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">197,137</FONT></B></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><B><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">5</FONT></B></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><B><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">(2,010)</FONT></B></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><B><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">-</FONT></B></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><B><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">15,682</FONT></B></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><B><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">(153,399)</FONT></B></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><B><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">57,415</FONT></B></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><B><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">(1,796)</FONT></B></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><B><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">55,619</FONT></B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 11pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black" size="2">Comprehensive income for the period</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><font size="2">&nbsp;</font></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><font size="2">&nbsp;</font></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><B><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">937</FONT></B></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><font size="2">&nbsp;</font></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><font size="2">&nbsp;</font></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><B><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">4,593</FONT></B></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><B><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">5,530</FONT></B></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><B><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">827</FONT></B></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><B><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">6,357</FONT></B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 11pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black" size="2">Reduction of stated capital<SUP>(1)</SUP></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><B><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">(140,000)</FONT></B></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><font size="2">&nbsp;</font></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><font size="2">&nbsp;</font></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><B><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">140,000</FONT></B></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><font size="2">&nbsp;</font></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><font size="2">&nbsp;</font></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><B><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">-</FONT></B></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><font size="2">&nbsp;</font></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><B><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">-</FONT></B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 11pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black" size="2">Shares issued</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><B><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">182</FONT></B></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><font size="2">&nbsp;</font></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><font size="2">&nbsp;</font></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><font size="2">&nbsp;</font></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><font size="2">&nbsp;</font></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><font size="2">&nbsp;</font></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><B><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">182</FONT></B></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><B><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">-</FONT></B></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><B><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">182</FONT></B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 11pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black" size="2">Dividend paid</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><font size="2">&nbsp;</font></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><font size="2">&nbsp;</font></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><font size="2">&nbsp;</font></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><font size="2">&nbsp;</font></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><font size="2">&nbsp;</font></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><B><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">(2,584)</FONT></B></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><B><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">(2,584)</FONT></B></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><B><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">(250)</FONT></B></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><B><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">(2,834)</FONT></B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 11pt; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black" size="2"><B>Balance at March 31, 2013 - Unaudited</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><B><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">57,319</FONT></B></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><B><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">5</FONT></B></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><B><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">(1,073)</FONT></B></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><B><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">140,000</FONT></B></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><B><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">15,682</FONT></B></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><B><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">(151,390)</FONT></B></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><B><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">60,543</FONT></B></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><B><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">(1,219)</FONT></B></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><B><FONT STYLE="font-style: normal; font-variant: normal; font-weight: normal; font-family: 'Times New Roman', Times, Serif; color: black" size="2">59,324</FONT></B></TD></TR>
</TABLE>


<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt"><I></I></P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt"><I>&nbsp;</I></P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt"><I></I></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 10pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 18pt"></TD><TD STYLE="width: 18pt"><SUP>(1)</SUP></TD><TD>Shareholder approval was obtained for the reduction in stated capital at the Special Meeting held on January 24, 2013</TD></TR></TABLE>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt">&nbsp;</P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt">&nbsp;</P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt">&nbsp;</P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt">&nbsp;</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">The accompanying notes on pages 6 to 20 are an integral
part of these condensed consolidated interim financial statements.</P>


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<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt"><FONT STYLE="font-size: 14pt"><B>Caledonia Mining
Corporation</B></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD NOWRAP COLSPAN="6" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-size: 14pt; font-weight: bold"><FONT STYLE="font: 14pt Times New Roman, Times, Serif; color: black"><B>Condensed consolidated statements of cash flows</B></FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="width: 58%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-style: italic"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><I>(expressed in thousands of Canadian dollars)</I></FONT></TD>
    <TD STYLE="vertical-align: top; width: 7%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-style: italic">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 13%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 3%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 9%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    </TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-style: italic"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><I>For the three months ended March 31,</I></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-style: italic; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    </TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Unaudited</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    </TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Cash flows from operating activities</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-style: italic; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B><I>Note</I></B></FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>2013</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">2012</FONT></TD>
    </TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-style: italic; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    </TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-style: italic; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    </TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Profit for the year</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>5,530</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">7,111</FONT></TD>
    </TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Adjustments for non-cash flow items</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-style: italic; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><I>13</I></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>3,117</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">1,535</FONT></TD>
    </TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Changes in non-cash working capital</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-style: italic; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><I>13</I></FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>(3,212)</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">405</FONT></TD>
    </TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Interest received</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-style: italic; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>67</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    </TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Interest paid</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>(131)</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(46)</FONT></TD>
    </TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Tax paid</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>(3,163)</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(875)</FONT></TD>
    </TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Cash from operating activities</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>2,208</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">8,130</FONT></TD>
    </TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-top: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="border-top: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    </TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Cash flows from investing activities</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    </TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Property, plant and equipment additions</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>(1,340)</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(1,098)</FONT></TD>
    </TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Net cash used in investing activities</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>(1,340)</B></FONT></TD>
    <TD STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(1,098)</FONT></TD>
    </TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    </TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Cash flows from financing activities</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    </TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Bank overdraft increase (decrease)</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>-</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(430)</FONT></TD>
    </TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Dividend paid</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-style: italic; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>(2,834)</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    </TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Advance dividend paid</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-style: italic; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><I>5</I></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>(969)</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    </TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Proceeds from the exercise of share options</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-style: italic; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><I>12</I></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>182</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    </TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Net cash used in financing activities</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>(3,371)</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(430)</FONT></TD>
    </TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Net increase/(decrease) in cash and cash equivalents</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>(2,753)</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">6,602</FONT></TD>
    </TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Cash and cash equivalents at beginning period</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>27,942</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">9,686</FONT></TD>
    </TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Cash and cash equivalents at end of period</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>25,189</B></FONT></TD>
    <TD STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">16,288</FONT></TD>
    </TR>
</TABLE>
<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt">&nbsp;</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">The accompanying notes on pages 6 to 20 are an integral
part of these condensed consolidated interim financial statements.</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt 4.65pt; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt 4.65pt; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt 4.65pt; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt 4.65pt; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt 4.65pt; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt 4.65pt; text-align: justify"><B>&nbsp;</B></P>


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<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><B>&nbsp;</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0 0 0 4.5pt"><B>Caledonia Mining Corporation</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0 0 0 4.3pt"><B>Notes to the Condensed Consolidated Financial Statements</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0 0 0 4.25pt"><B>For the period ended March 31, 2013 and March 31,
2012</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 4.25pt"><B>(<I>expressed</I> <I>in thousands of Canadian dollars</I>)</B></P>



<hr color="#000000">



<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><B></B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt 4.65pt; text-align: justify"><B>1&nbsp;&nbsp;&nbsp;&nbsp;&#9;Reporting entity</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt 4.65pt; text-align: justify">Caledonia Mining Corporation
(the &ldquo;Company&rdquo;) is a company domiciled in Canada. The address of the Company&rsquo;s registered office is Suite 1201,
67 Yonge Street, Toronto, Ontario M5E 1J8 Canada. The Condensed Consolidated Financial Statements of the Company as at and for
the three months ended March 31, 2013 comprises the Company and its subsidiaries (together referred to as the &ldquo;Group&rdquo;
or &ldquo;Company&rdquo; and individually as &ldquo;Group entities&rdquo;). The Group is primarily involved in the operation of
a gold mine and the acquisition, exploration and development of mineral properties for the exploration of base and precious metals.</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt 4.65pt; text-align: justify"><B>2&nbsp;&nbsp;&nbsp;&nbsp;&#9;Basis for preparation
</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt 4.65pt; text-align: justify"><B>(a) Statement of compliance</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt 7.1pt; text-align: justify"><FONT STYLE="color: black">These
unaudited Condensed Consolidated Interim Financial Statements have been prepared in accordance with IAS 34 <I>Interim Financial
Reporting</I> and do not include all the information required for full annual financial statements.</FONT> Accordingly, certain
information and disclosures normally included in the annual Financial Statements prepared in accordance with International Financial
Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) have been omitted or condensed. Selected
explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the
financial position and performance of the Group since the last annual consolidated financial statements as at and for the year
ended December 31, 2012.</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt 4.65pt; text-align: justify"><B>(b) Basis of measurement</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt 4.65pt; text-align: justify">The consolidated financial
statements have been prepared on the historical cost basis except for the following item in the statement of financial position:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 10pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 22.65pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">equity-settled share-based payment arrangements
are measured at fair value on grant date.</FONT></TD></TR></TABLE>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt 4.65pt; text-align: justify"><B>(c) Presentation currency</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt 4.5pt; text-align: justify">These consolidated financial
statements are presented in the Canadian dollar, which is the functional currency of Caledonia Mining Corporation. All financial
information presented in the Canadian dollar has been rounded to the nearest thousand.</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt 4.5pt; text-align: justify"><B>3&nbsp;&nbsp;&nbsp;&nbsp;&#9;Use of estimates
and judgements</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt 4.5pt; text-align: justify">Management makes estimates
and assumptions about the future that affect the reported amounts of assets and liabilities. Estimates and assumptions are continually
evaluated based on historical experience and other factors, including expectations of future events that are believed to be reasonable
under the circumstances. Actual results may differ from these estimates and assumptions. The effect of a change in an accounting
estimate is recognized prospectively by including it in comprehensive income in the period of the change, if the change affects
that period only, or in the period of the change and future periods, if the change affects both.</P>


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<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0 0 0 4.5pt"><B>Caledonia Mining Corporation</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0 0 0 4.3pt"><B>Notes to the Condensed Consolidated Financial Statements</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0 0 0 4.25pt"><B>For the period ended March 31, 2013 and March 31,
2012</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 4.25pt"><B>(<I>expressed</I> <I>in thousands of Canadian dollars</I>)</B></P>



<hr color="#000000">



<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt 4.5pt; text-align: justify">In preparing t<FONT STYLE="color: black">hese
condensed consolidated interim financial statements, the significant judgements made by management in applying the Group&rsquo;s
accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial
statements as at December 31, 2012. The Condensed Consolidated Interim Financial Statements should be read in conjunction with
the Group&rsquo;s annual Financial Statements for the year ended December 31, 2012.</FONT></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.3pt; text-align: justify"><B>4&nbsp;&nbsp;&nbsp;&nbsp;&#9;Significant accounting
policies</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt 4.65pt; text-align: justify"><FONT STYLE="color: black">The
accounting policies applied by the Group in </FONT>t<FONT STYLE="color: black">hese condensed consolidated interim financial statements
are the same as those applied by the Group in its consolidated financial statements as at and for the year ended December 31, 2012,
except for the change in policy relating to IFRS 10 described below.</FONT></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt 4.65pt; text-align: justify"><FONT STYLE="color: black">Listed
below are the </FONT>new or revised accounting standards and interpretations in issue applicable to the Group that became effective
on January 1, 2013. These standards and interpretations and have been adopted by the Group in the period ended March 31, 2013.</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 11pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; border: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6.5pt 0; text-align: center"><B>&nbsp;</B></P>
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6.5pt 0; text-align: center"><B>Standard/Interpretation</B></P></TD>
    <TD STYLE="vertical-align: top; border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6.5pt 0; text-align: center"><B>&nbsp;</B></P>
        <P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6.5pt 0; text-align: justify"><B>Effective date</B></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 24%; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding: 6.5pt 5.4pt; text-align: justify; text-justify: inter-ideograph">IFRS 10</TD>
    <TD STYLE="width: 53%; border-bottom: windowtext 1pt solid; padding: 6.5pt 5.4pt; border-right: windowtext 1pt solid; font-style: italic; text-align: justify; text-justify: inter-ideograph"><I>Consolidated Financial Statements</I></TD>
    <TD STYLE="width: 23%; border-bottom: windowtext 1pt solid; padding: 6.5pt 5.4pt; border-right: windowtext 1pt solid; text-align: left; text-justify: inter-ideograph">January 1, 2013</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding: 6.5pt 5.4pt; text-align: justify; text-justify: inter-ideograph">IFRS 12</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding: 6.5pt 5.4pt; font-style: italic; text-align: justify; text-justify: inter-ideograph"><I>Disclosure of Interests in Other Entities</I></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding: 6.5pt 5.4pt; text-align: left; text-justify: inter-ideograph">January 1, 2013</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding: 6.5pt 5.4pt; text-align: justify; text-justify: inter-ideograph">IFRS 13</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding: 6.5pt 5.4pt; font-style: italic; text-align: justify; text-justify: inter-ideograph"><I>Fair Value Measurement</I></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding: 6.5pt 5.4pt; text-align: left; text-justify: inter-ideograph">January 1, 2013</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding: 6.5pt 5.4pt; text-align: justify; text-justify: inter-ideograph">IAS 1 amendments</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding: 6.5pt 5.4pt; font-style: italic; text-align: justify; text-justify: inter-ideograph"><I>Presentation of Financial Statements</I></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding: 6.5pt 5.4pt; text-align: left; text-justify: inter-ideograph">July 1, 2012</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding: 6.5pt 5.4pt; text-align: justify; text-justify: inter-ideograph">IAS 19 amendments</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding: 6.5pt 5.4pt; font-style: italic; text-align: justify; text-justify: inter-ideograph"><I>Employee Benefits</I></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding: 6.5pt 5.4pt; text-align: left; text-justify: inter-ideograph">January 1, 2013</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding: 6.5pt 5.4pt; text-align: left; text-justify: inter-ideograph">IFRS 7 amendments</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding: 6.5pt 5.4pt; font-style: italic; text-align: justify; text-justify: inter-ideograph"><I>Financial Instruments: Disclosures</I></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding: 6.5pt 5.4pt; text-align: left; text-justify: inter-ideograph">January 1, 2013 </TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding: 6.5pt 5.4pt; text-align: left; text-justify: inter-ideograph">IFRIC 20 </TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding: 6.5pt 5.4pt; font-style: italic; text-align: justify; text-justify: inter-ideograph"><I>Stripping Cost in the Production Phase of a Surface Mine</I></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding: 6.5pt 5.4pt; text-align: left; text-justify: inter-ideograph">January 1, 2013</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding: 6.5pt 5.4pt; text-align: left; text-justify: inter-ideograph">Annual Improvements 2009-2011 cycle</TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding: 6.5pt 5.4pt; font-style: italic; text-align: justify; text-justify: inter-ideograph"><I>Various IFRSs</I></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding: 6.5pt 5.4pt; text-align: left; text-justify: inter-ideograph">&nbsp;January 1, 2013</TD></TR>
</TABLE>
<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 13pt"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 13pt"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 13pt"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 13pt"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>


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<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><B>&nbsp;</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0 0 0 4.5pt"><B>Caledonia Mining Corporation</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0 0 0 4.3pt"><B>Notes to the Condensed Consolidated Financial Statements</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0 0 0 4.25pt"><B>For the period ended March 31, 2013 and March 31,
2012</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 4.25pt"><B>(<I>expressed</I> <I>in thousands of Canadian dollars</I>)</B></P>



<hr color="#000000">



<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><B></B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>4&nbsp;&nbsp;&nbsp;&nbsp;
Significant accounting policies
&ndash; (continued)</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6.5pt 0; text-align: justify"><U>IFRS 10 <I>Consolidated Financial
Statements</I></U></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6.5pt 0; text-align: justify">The Group adopted IFRS 10 from January
1, 2013.</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0">IFRS 10 introduced a single control model to assess whether
an investee should be consolidated.</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0">The &quot;Special purpose entities&quot; accounting policy
included in the December 31, 2012 consolidated financial statements was removed as a consequence. However, the adoption of IFRS
10 did not result in a change to the &quot;Basis of Consolidation - Subsidiaries&quot; accounting policy.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6.5pt 0; text-align: justify">The adoption of the standard did not
change the control conclusions reached in the <FONT STYLE="color: black">consolidated financial statements as at December 31, 2012.
The application of IFRS 10 to the Blanket Zimbabwe Indigenisation structure has been dealt with in note 5.</FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6.5pt 0; text-align: justify; text-indent: 0cm">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6.5pt 0; text-align: justify"><U>IFRS 12 <I>Disclosure of Interests
in Other Entities</I></U></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6.5pt 0; text-align: justify">The Group adopted IFRS 12 from January
1, 2013. The disclosure requirements of IFRS 12 will be applied in the December 31, 2013 consolidated financial statements. <FONT STYLE="color: black">Other
than additional disclosure requirements in the annual financial statements, there was no impact from the adoption of IFRS 12</FONT>.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6.5pt 0; text-align: justify"><U>IFRS 13 <I>Fair Value Measurement</I></U></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6.5pt 0; text-align: justify">The Group adopted IFRS 13 from January
1, 2013. The standard was applied prospectively and did not have an impact on the financial position or performance of the Group.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6.5pt 0; text-align: justify; text-indent: 0cm">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6.5pt 0; text-align: justify"><U>Amendments to IAS 1 <I>Presentation
of Financial Statements</I></U></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6.5pt 0; text-align: justify">The Group adopted the amendments to IAS
1 from January 1, 2013.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6.5pt 0; text-align: justify">In line with the amendment, the items
of other comprehensive income that may be reclassified to profit or loss in the future are presented separately from those that
would never be reclassified to profit or loss.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6.5pt 0; text-align: justify"><U>Amendments to IAS 19 <I>Employee Benefits</I></U></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6.5pt 0; text-align: justify">The Group adopted the amendments to IAS
19 from January 1, 2013. The adoption of the standard did not have an impact on the financial position or performance of the Group.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6.5pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6.5pt 0; text-align: justify"><U>Amendments IFRS 7: <I>Financial Instruments:
Disclosures</I></U></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6.5pt 0; text-align: justify">The Group adopted the amendments to IFRS
7 from January 1, 2013. The amended disclosure requirements of IFRS 7 will be applied in the December 31, 2013 consolidated financial
statements to the extent relevant. Other than additional disclosure requirements, there was no impact from the adoption of the
amended IFRS 7.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6.5pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6.5pt 0; text-align: justify"><U>IFRIC 20 <I>Stripping Cost in the
Production Phase of a Surface Mine</I></U></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6.5pt 0; text-align: justify">The Group adopted IFRIC 20 from January
1, 2013. The standard was applied prospectively and did not have an impact on the financial position or performance of the Group.
The Group does not currently have surface mining operations in the production phase falling in the scope of IFRIC 20.</P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 6.5pt 0; text-align: justify; text-indent: 0cm"><U>Annual Improvements
2009-2011 cycle</U></P>


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<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0 0 0 4.5pt"><B>Caledonia Mining Corporation</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0 0 0 4.3pt"><B>Notes to the Condensed Consolidated Financial Statements</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0 0 0 4.25pt"><B>For the period ended March 31, 2013 and March 31,
2012</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 4.25pt"><B>(<I>expressed</I> <I>in thousands of Canadian dollars</I>)</B></P>



<hr color="#000000">



<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 6.5pt 0; text-align: justify; text-indent: 0cm">The Group adopted
certain annual improvements from January 1, 2013. The annual improvements consist of amendments to existing IFRSs to clarify guidance
and wording, or to correct for relatively minor unintended consequences, conflicts or oversights. The adoption of the annual improvements
did not impact the financial position or performance of the Group.</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="margin-top: 0; margin-bottom: 0; font-family: Times New Roman, Times, Serif"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 17pt"><B>5</B></TD><TD STYLE="text-align: justify"><B>Blanket Zimbabwe Indigenisation Transaction </B></TD></TR></TABLE>

<P STYLE="text-align: justify; text-indent: -17pt; margin: 0 0 0 17pt; font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.5pt; text-align: justify">On February 20, 2012<B> </B>Caledonia
announced it had signed a Memorandum of Understanding (&ldquo;MoU&rdquo;) with the Minister of Youth, Development, Indigenisation
and Empowerment of the Government of Zimbabwe pursuant to which Caledonia agreed that indigenous Zimbabweans would acquire an effective
51% ownership interest in the Blanket Mine for a paid transactional value of US$30.09 million.</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.5pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.5pt; text-align: justify">Pursuant to the above, Caledonia
entered into agreements with each Indigenisation Shareholder to sell its 51% ownership interest in Blanket as follows:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 17pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">A 16% interest was sold
to the National Indigenisation and Economic Empowerment Fund (NIEEF) for US$11.74 million.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 17pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">A 15% interest was sold
to Fremiro, which is owned by Indigenous Zimbabweans, for US$11.01 million.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 17pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">A 10% interest was sold
to Blanket Employee Trust Services (Private) Limited (BETS) for the benefit of present and future managers and employees for US$7.34
million. The shares in BETS are held by the Blanket Mine Employee Trust (Employee Trust) with Blanket&rsquo;s employees holding
participation units in the Employee Trust.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 17pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">A 10% interest was donated
to the Gwanda Community Share Ownership Trust (Community Trust). Blanket undertook and paid a non-refundable donation of US$1 million
to the Community Trust.</FONT></TD></TR></TABLE>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.5pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.5pt; text-align: justify">Caledonia facilitated the vendor
funding of these transactions (other than the 10% interest which was donated to the Community Trust) which will be repaid by way
of future dividends from Blanket. 80% of dividends declared by Blanket will be used to repay such loans and the remaining 20% will
unconditionally accrue to the respective Indigenous Shareholders.</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.5pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.5pt; text-align: justify">Outstanding balances on the
facilitation loans attract interest at a rate of 10% over the 12-month LIBOR. The timing of the repayment of the loans depends
on the future financial performance of Blanket and the extent of future dividends declared by Blanket.</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.5pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.5pt; text-align: justify">In order to ensure the repayment
from Blanket to Caledonia of the vendor funding of the proceeds, Reserve Bank of Zimbabwe approval was obtained for the facilitation
loans to be declared by Caledonia Holdings Zimbabwe (Blanket&rsquo;s parent company) to Greenstone Management Services Limited,
a UK based wholly-owned subsidiary of Caledonia Mining Corporation, as a dividend in specie on February 14, 2013 and withholding
tax amounting to US$1.504 million was paid and expensed on March 5, 2013.</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.5pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 6pt 7.1pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">The
Government of Zimbabwe has confirmed that the implementation of the terms of the MoU and the underlying subscription agreements
constitute full compliance with the requirements of the Indigenisation Act and the Regulations and Blanket has received its certificate
of compliance </FONT>which <FONT STYLE="font-family: Times New Roman, Times, Serif">confirms that Blanket is fully compliant with
the requirements of Section 3(1)(a) of the Indigenisation and Economic Empowerment Act (Chapter 14.33). </FONT></P>


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<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><B>&nbsp;</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0 0 0 4.5pt"><B>Caledonia Mining Corporation</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0 0 0 4.3pt"><B>Notes to the Condensed Consolidated Financial Statements</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0 0 0 4.25pt"><B>For the period ended March 31, 2013 and March 31,
2012</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 4.25pt"><B>(<I>expressed</I> <I>in thousands of Canadian dollars</I>)</B></P>



<hr color="#000000">



<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><B></B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.5pt; text-align: justify"><B>5&nbsp;&nbsp;&nbsp;&nbsp;
Blanket Zimbabwe Indigenisation
Transaction &ndash; (continued)</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 6pt 7.1pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.5pt; text-align: justify">Completion of the above agreements
was subject to specified conditions as contemplated in the MoU, underlying agreements and related transactions to give effect to
the Indigenisation Transaction. The final condition precedent was met on September 5, 2012 and on that date, the Indigenisation
Shareholders effectively acquired 51% ownership and economic interest in the Blanket Mine.</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.5pt; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.5pt; text-align: justify"><B>Accounting treatment</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt 4.65pt; text-align: justify">Further to the implementation
of the Indigenisation Transaction, a 51% shareholding in Blanket was acquired by the Indigenisation Shareholders. The directors
of Caledonia Holdings Zimbabwe (Private) Limited (&ldquo;CHZ&rdquo;) a wholly owned subsidiary of the Company, performed an assessment,
using the requirements of IFRS 10: <I>Consolidated Financial Statements</I> (IFRS 10), to determine whether Blanket should continue
to be consolidated by CHZ. Following the IFRS 10 assessment, it was concluded that CHZ retained control and should continue to
consolidate Blanket and accordingly the subscription agreements will be accounted for as a transaction with non-controlling interests
and share based payments.</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt 4.65pt; text-align: justify">Control as contemplated
in IFRS 10 was considered to exist on the basis of exercisable power conferred on Caledonia Holdings Zimbabwe to cast majority
votes at board level as contained in the registered founding documents of Blanket as well as consideration of the de facto control
aspects of the relative shareholdings in Blanket. The aspect of control under IFRS 10 will be reviewed at each reporting cycle.</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.5pt; text-align: justify">Accordingly, on the effective
date of the transaction, the subscription agreements were accounted for as follows:</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.5pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 17pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Non-controlling interests
(NCI) were recognised on the portion of shareholding upon which dividends declared by Blanket will accrue unconditionally to equity
holders as follows:</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="margin-top: 0; margin-bottom: 0; font-family: Times New Roman, Times, Serif"><TR STYLE="vertical-align: top">
<TD STYLE="width: 18pt"></TD><TD STYLE="width: 18pt">(a)</TD><TD STYLE="text-align: justify">20% of the 16% shareholding of NIEEF;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="margin-top: 0; margin-bottom: 0; font-family: Times New Roman, Times, Serif"><TR STYLE="vertical-align: top">
<TD STYLE="width: 18pt"></TD><TD STYLE="width: 18pt">(b)</TD><TD STYLE="text-align: justify">20% of the 15% shareholding of Fremiro;</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="margin-top: 0; margin-bottom: 0; font-family: Times New Roman, Times, Serif"><TR STYLE="vertical-align: top">
<TD STYLE="width: 18pt"></TD><TD STYLE="width: 18pt">(c)</TD><TD STYLE="text-align: justify">100% of the 10% shareholding of the Community Trust.</TD></TR></TABLE>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 18pt; text-align: justify">i.e. a 16.2% NCI of net assets
and earnings is recognised at Blanket level.</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 17pt; text-align: justify">The remaining 80% of the shareholding
of NIEEF and Fremiro is recognised as non-controlling interest to the extent that their attributable share of the net asset value
of Blanket exceeds the balance on the facilitation loans including interest. At March 31, 2013, the attributable net asset value
did not exceed the balance on the respective loan accounts and thus no additional NCI was recognised.</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 17pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 17pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">As the facilitation loans
are only repayable from dividends declared by Blanket, a loan receivable is not recognised and the arrangement is accounted for
within equity.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 17pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">The difference between the
fair value of the equity instruments granted and facilitation loans, taking into account all the interest terms and advance dividend
rights (see below), was previously recognised as a share based payment expense.</FONT></TD></TR></TABLE>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.5pt; text-align: justify">&nbsp;</P>


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<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><B>&nbsp;</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0 0 0 4.5pt"><B>Caledonia Mining Corporation</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0 0 0 4.3pt"><B>Notes to the Condensed Consolidated Financial Statements</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0 0 0 4.25pt"><B>For the period ended March 31, 2013 and March 31,
2012</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 4.25pt"><B>(<I>expressed</I> <I>in thousands of Canadian dollars</I>)</B></P>



<hr color="#000000">



<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 17pt; text-align: justify"><B>5&nbsp;&nbsp;&nbsp;&nbsp;
Blanket Zimbabwe Indigenisation
Transaction &ndash; (continued)</B></P>

<P STYLE="text-align: justify; text-indent: -17pt; margin: 0 0 0 17pt; font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 17pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">The transaction with the
BETS will be accounted for in accordance with IAS 19 <I>Employee Benefits</I> (profit sharing arrangement) as the ownership of
the shares does not ultimately pass to the employees. The employees are entitled to participate in 20% of the dividends accruing
to the 10% shareholding in Blanket if they are employed at the date of such distribution. To the extent that 80% of the attributable
dividends exceed the balance on the BETS facilitation loan they will accrue to the employees at the date of such declaration.</FONT></TD></TR></TABLE>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 17pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.5pt; text-align: justify">The Employee Trust and BETS
controlled and consolidated by Blanket in terms of IFRS 10. Accordingly the shares held by BETS are effectively treated as treasury
shares and no NCI is recognised.</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top; width: 17%; padding-left: 4.5pt; line-height: 115%; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 21%; border-bottom: windowtext 1pt solid; padding-left: 4.5pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Shareholding</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 16%; border-bottom: windowtext 1pt solid; padding-left: 4.5pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Balance of facilitation loan at 31 December 2012 #</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 16%; border-bottom: windowtext 1pt solid; padding-left: 4.5pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Interest accrued</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 16%; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.5pt; text-align: right">Repayment</P>
        <P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.5pt; text-align: right"><B>&nbsp;</B></P></TD>
    <TD STYLE="vertical-align: bottom; width: 14%; border-bottom: windowtext 1pt solid; padding-left: 4.5pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Balance of facilitation loan at 31 March 2013 #</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 4.5pt; line-height: 115%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">NIEEF</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">16%</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">11,742</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">11,742</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 4.5pt; line-height: 115%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Fremiro</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">15%</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">11,402</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">305</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(435)</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">11,272</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 4.5pt; line-height: 115%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Community Trust</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">10%</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 4.5pt; line-height: 115%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">BETS</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-left: 4.5pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">10%</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-left: 4.5pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">7,602</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-left: 4.5pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">203</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-left: 4.5pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(290)</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-left: 4.5pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">7,515</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 4.5pt; line-height: 115%; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-left: 4.5pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">51%</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-left: 4.5pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">30,746</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-left: 4.5pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">508</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-left: 4.5pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(725)</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-left: 4.5pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">30,529</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 17pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"># Facilitation loans are
accounted for as equity instruments and are accordingly not recognised as loans receivable (see above).</FONT></TD></TR></TABLE>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.5pt; text-align: justify"><B>Advance dividends</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.5pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.5pt; text-align: justify">In anticipation of completion
of the underlying subscription agreements, Blanket agreed to an advance dividend arrangement with NIEEF and the Community Trust
as follows:</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.5pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="margin-top: 0; margin-bottom: 0; font-family: Times New Roman, Times, Serif"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 17pt">(a)</TD><TD STYLE="text-align: justify"><FONT STYLE="color: black">Advances to the Community Trust against their right to receive dividends
declared by Blanket on their shareholding as follows;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 52pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">A US$2 million payment on or before September
30, 2012;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 52pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">A US$1 million payment on or before February
28, 2013; and</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 52pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&#183;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">A US$1 million payment on or before April
30, 2013.</FONT></TD></TR></TABLE>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 70pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.5pt; text-align: justify">These advance payments have
been recorded to a loan account bearing interest at a rate of 10% over the 12-month LIBOR. The loan is repayable by way of set
off of future dividends on the Blanket shares owed by the Community Trust.</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>


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<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><B>&nbsp;</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0 0 0 4.5pt"><B>Caledonia Mining Corporation</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0 0 0 4.3pt"><B>Notes to the Condensed Consolidated Financial Statements</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0 0 0 4.25pt"><B>For the period ended March 31, 2013 and March 31,
2012</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 4.25pt"><B>(<I>expressed</I> <I>in thousands of Canadian dollars</I>)</B></P>



<hr color="#000000">



<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><B></B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>5&nbsp;&nbsp;&nbsp;&nbsp;
Blanket Zimbabwe Indigenisation
Transaction &ndash; (continued)</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.5pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.5pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="margin-top: 0; margin-bottom: 0; font-family: Times New Roman, Times, Serif"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 17pt">(b)</TD><TD STYLE="text-align: justify"><FONT STYLE="color: black">An advance payment of US$1.8 million to NIEEF against their right to
receive dividends declared by Blanket on their shareholding. The advance payment has been debited to an interest-free loan account
and is repayable by way of set off of future dividends on the Blanket shares owned by NIEEF. Whilst any amount remains outstanding
on the NIEEF dividend loan account, interest on the NIEEF facilitation loan will be suspended.</FONT></TD></TR></TABLE>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.5pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.5pt; text-align: justify">The advance dividend payments
have been recognised as a distribution to shareholders on the effective date of the subscription agreements. The loans arising
are not recognised as loans receivable by Blanket as they are only repayable by set off of future dividend entitlements and are
accordingly regarded as equity instruments.</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.5pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.5pt; text-align: justify">The balance on the advance dividend
loans is reconciled as follows:</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 11pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top; width: 53%; padding-left: 4.5pt; line-height: 115%; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 2%; padding-left: 4.5pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 5%; padding-left: 4.5pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 14%; padding-left: 4.5pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">NIEEF</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 15%; padding-left: 4.5pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Community Trust</FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 11%; padding-left: 4.5pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Total</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 4.5pt; line-height: 115%; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">$</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">$</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">$</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Advance dividends paid to December 31, 2012</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">1,788</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">1,951</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">3,739</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Advance dividend payment during the period</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">969</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">969</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Interest accrued</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">120</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">120</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 4.5pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Repayments made</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(493)</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(308)</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(801)</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 4.5pt; line-height: 115%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Balance as at March 31, 2013</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 4.5pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-left: 4.5pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">1,295</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-left: 4.5pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">2,732</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-left: 4.5pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">4,027</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.5pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.5pt; text-align: justify">The advance payment to the Community
Trust of the final US$1million, payable in April 2013, has been recognised as a liability as Blanket has a present obligation to
make the payment.</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.5pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.3pt; text-align: justify"><B>6&#9;Production costs</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 76%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 14%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>2013</B></FONT></TD>
    <TD NOWRAP STYLE="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">2012</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Wages</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>2,395</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">1,739</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Consumable materials</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>4,494</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">3,782</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Site restoration</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>25</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">11</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Exploration</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>300</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">107</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Safety</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>118</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">92</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">On mine administration</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>687</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">713</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>8,019</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">6,444</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt 4.3pt; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt 4.3pt; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt 4.3pt; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt 4.3pt; text-align: justify"><B>&nbsp;</B></P>


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<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><B>&nbsp;</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0 0 0 4.5pt"><B>Caledonia Mining Corporation</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0 0 0 4.3pt"><B>Notes to the Condensed Consolidated Financial Statements</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0 0 0 4.25pt"><B>For the period ended March 31, 2013 and March 31,
2012</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 4.25pt"><B>(<I>expressed</I> <I>in thousands of Canadian dollars</I>)</B></P>



<hr color="#000000">



<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><B></B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt 4.3pt; text-align: justify"><B>7&nbsp;&nbsp;&nbsp;&nbsp;&#9;Administrative expenses</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 74%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 13%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>2013</B></FONT></TD>
    <TD STYLE="width: 13%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">2012</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Investor relations</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>256</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">84</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Management contract fee</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>182</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">153</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Audit fee</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>45</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">45</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Legal fee and disbursements</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>122</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">44</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Accounting services fee</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>9</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">8</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Listing fees</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>16</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">54</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Directors fees</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>66</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">43</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Salaries and wages</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>339</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">244</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Other</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>140</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">27</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>1,175</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">801</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.25pt; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.25pt; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.25pt; text-align: justify"><B>8.&nbsp;&nbsp;&nbsp;&nbsp;&#9;Taxation</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.25pt; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.25pt; text-align: justify"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 11pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>2013</B></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">2012</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Current year Income Tax</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>747</B></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">232</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Deferred tax</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>-</B></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">145</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Withholding tax paid </FONT></TD>
    <TD STYLE="vertical-align: super; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B><SUP>(1)</SUP>1,531</B></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">643</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>2,278</B></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: bottom; border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">1,020</FONT></TD></TR>
<TR>
    <TD STYLE="width: 78%">&nbsp;</TD>
    <TD STYLE="width: 11%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 10%">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.25pt; text-align: justify"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 10pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 18pt"></TD><TD STYLE="width: 18pt"><SUP>(1)</SUP></TD><TD STYLE="text-align: justify">Withholding tax paid on declaration of dividend-in-specie (refer note 5)</TD></TR></TABLE>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.25pt; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.25pt; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.25pt; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.25pt; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.25pt; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.25pt; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.25pt; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.25pt; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.25pt; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.25pt; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.25pt; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.25pt; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.25pt; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.25pt; text-align: justify"><B>&nbsp;</B></P>


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<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><B>&nbsp;</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0 0 0 4.5pt"><B>Caledonia Mining Corporation</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0 0 0 4.3pt"><B>Notes to the Condensed Consolidated Financial Statements</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0 0 0 4.25pt"><B>For the period ended March 31, 2013 and March 31,
2012</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 4.25pt"><B>(<I>expressed</I> <I>in thousands of Canadian dollars</I>)</B></P>



<hr color="#000000">



<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt 4.3pt; text-align: justify"><B>9&nbsp;&nbsp;&nbsp;&nbsp;&#9;Property, plant and
equipment</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: bottom; width: 29%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 5%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-style: italic; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 9%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Land and buildings</B></FONT></TD>
    <TD STYLE="vertical-align: top; width: 10%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Mineral properties being depleted</B></FONT></TD>
    <TD STYLE="vertical-align: top; width: 10%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Mineral properties not being depleted</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 10%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Plant and equipment</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 9%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Fixtures and fittings</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 9%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Motor vehicles</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 9%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Total</B></FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Cost </B></FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Balance at January 1, 2012</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">4,200</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">9,934</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">7,443</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">19,998</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">1,152</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">1,155</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">43,882</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Additions</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">472</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">2,280</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">3,614</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">767</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">74</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">702</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">7,909</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Disposals</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD STYLE="vertical-align: super; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><SUP>(1)</SUP>(622)</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(39)</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(661)</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Derecognition <SUP>(2)</SUP></FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD STYLE="vertical-align: super; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><SUP>-</SUP></FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(773)</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(773)</FONT></TD></TR>
<TR>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Foreign exchange movement</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(138)</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(267)</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(219)</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(646)</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(30)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(36)</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(1,336)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Balance at December 31, 2012</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">4,534</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">11,325</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">10,838</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">19,346</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">1,196</FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">1,782</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">49,021</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Additions</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>103</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>714</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>189</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>241</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>23</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>70</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>1,340</B></FONT></TD></TR>
<TR>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Foreign exchange movement</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>73</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>281</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>255</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>405</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>5</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>44</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>1,063</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Balance at March 31, 2013</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>4,710</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>12,320</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>11,282</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>19,992</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>1,224</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>1,896</B></FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>51,424</B></FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
</TABLE>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 10pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 7.15pt"></TD><TD STYLE="width: 21.25pt"><SUP>(1)</SUP></TD><TD STYLE="text-align: justify">This represents the write down of the rehabilitation asset as a result of the reduced present value
of the rehabilitation provision as assessed at year end.</TD></TR></TABLE>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt 1cm; text-align: justify; text-indent: -21.25pt"><SUP>(2<FONT STYLE="font-family: Times New Roman, Times, Serif">)</FONT></SUP><FONT STYLE="font-family: Times New Roman, Times, Serif">
This represents the cost and accumulated depreciation of components of plant and machinery that have been written off due to replacement
or refurbishment</FONT><SUP>&#9;</SUP><BR CLEAR="ALL" STYLE="page-break-before: always">
</P>


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<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><B>&nbsp;</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0 0 0 4.5pt"><B>Caledonia Mining Corporation</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0 0 0 4.3pt"><B>Notes to the Condensed Consolidated Financial Statements</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0 0 0 4.25pt"><B>For the period ended March 31, 2013 and March 31,
2012</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 4.25pt"><B>(<I>expressed</I> <I>in thousands of Canadian dollars</I>)</B></P>



<hr color="#000000">



<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"></P>

<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>9&nbsp;&nbsp;&nbsp;&nbsp;</B></FONT><B>&#9;<FONT STYLE="font-family: Times New Roman, Times, Serif">Property,
plant and equipment - (continued)</FONT></B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top; width: 29%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 5%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 9%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Land and buildings</B></FONT></TD>
    <TD STYLE="vertical-align: top; width: 10%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Mineral properties being depleted</B></FONT></TD>
    <TD STYLE="vertical-align: top; width: 10%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Mineral properties not being depleted</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 10%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Plant and equipment</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 9%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Fixtures and fittings</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 9%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Motor vehicles</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 9%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Total</B></FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Depreciation and Impairment losses</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Balance at January 1, 2012</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">737</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">1,528</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">6,178</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">923</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">598</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">9,964</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Depreciation for the year</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">262</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">543</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">2,279</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">82</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">226</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">3,392</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Disposals</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(3)</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(3)</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Derecognition <SUP>(2)</SUP></FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(443)</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(443)</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Foreign exchange movement</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(21)</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(43)</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(255)</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(23)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(18)</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(360)</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Balance at December 31, 2012</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">978</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">2,028</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">7,759</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">982</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">803</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">12,550</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Depreciation for the year</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">66</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">170</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">484</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">16</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">67</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">803</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Foreign exchange movement</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(25)</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(50)</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(88)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">1</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(21)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(183)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Balance at March 31, 2013</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">1,069</FONT></TD>
    <TD STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">2,248</FONT></TD>
    <TD STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">8,331</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">997</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">891</FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">13,536</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Carrying amounts</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">At December 31, 2012</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">3,556</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">9,297</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">10,838</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">11,587</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">214</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">979</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">36,471</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">At March 31, 2013</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>3,641</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>10,072</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>11,282</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>11,661</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>227</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>1,005</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>37,888</B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt 4.3pt; text-align: justify"><B><BR CLEAR="ALL">
</B></P>


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<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><B>&nbsp;</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0 0 0 4.5pt"><B>Caledonia Mining Corporation</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0 0 0 4.3pt"><B>Notes to the Condensed Consolidated Financial Statements</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0 0 0 4.25pt"><B>For the period ended March 31, 2013 and March 31,
2012</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 4.25pt"><B>(<I>expressed</I> <I>in thousands of Canadian dollars</I>)</B></P>



<hr color="#000000">



<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><B></B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt 4.3pt; text-align: justify"><B>10&nbsp;&nbsp;&nbsp;&nbsp;&#9;Inventories&#9;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 50%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-style: italic">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 21%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 14%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="width: 15%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">December 31</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>2013</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">2012</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Consumable stores</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>4,893</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">4,720</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Gold in progress</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>-</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">788</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>4,893</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">5,508</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt 4.3pt; text-align: justify">Inventory is comprised of
gold in circuit at Blanket and consumable stores utilised by Blanket Mine. Consumables stores are disclosed net of any write downs
or provisions of obsolete items.</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt 4.3pt; text-align: justify"><B>11&nbsp;&nbsp;&nbsp;&nbsp;&#9;Trade and other
receivables</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 61%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-style: italic; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 5%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 15%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="width: 19%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">December 31</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>2013</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">2012</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Bullion sales receivable</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>3,052</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">VAT receivables</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>926</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">1,103</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Deposits for stores and equipment and other receivables</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>1,228</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">615</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Current portion</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>5,206</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">1,718</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt 4.3pt; text-align: justify">The bullion receivable is
received shortly after the delivery of the gold and no provision for non-recovery is required.</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt 4.3pt; text-align: justify"><B>12&nbsp;&nbsp;&nbsp;&nbsp;&#9;Equity</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt 4.3pt; text-align: justify"><B>Share capital </B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Authorised</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Unlimited number of common shares of no par value</FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Unlimited number of preference shares of no par value.</FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Issued</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Number of unconsolidated common shares</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Amount</B></FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">December 31, 2011</FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; border-top: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">500,549,280</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-top: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">196,163</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Issued on exercise of share options during the year</FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">13,912,500</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">974</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">December 31, 2012</FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">514,461,780</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">197,137</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Issued on exercise of share options during the period</FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>2,600,000</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>182</B></FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>March 31, 2013</B></FONT></TD>
    <TD NOWRAP COLSPAN="2" STYLE="vertical-align: bottom; border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>517,061,780</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>$197,319</B></FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD NOWRAP COLSPAN="2" STYLE="border-top: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="width: 351px">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="width: 25px">&nbsp;</TD>
    <TD STYLE="width: 151px">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.25pt; text-align: justify"><B>&nbsp;</B></P>


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<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><B></B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0 0 0 4.5pt"><B>Caledonia Mining Corporation</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0 0 0 4.3pt"><B>Notes to the Condensed Consolidated Financial Statements</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0 0 0 4.25pt"><B>For the period ended March 31, 2013 and March 31,
2012</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 4.25pt"><B>(<I>expressed</I> <I>in thousands of Canadian dollars</I>)</B></P>



<hr color="#000000">

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.25pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.25pt; text-align: justify"><B>13&nbsp;&nbsp;&nbsp;&nbsp; Cash flow information</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.25pt; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.25pt; text-align: justify">Adjustment for non-cash flow
items:</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 67%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-style: italic">&nbsp;</TD>
    <TD STYLE="width: 17%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>2013</B></FONT></TD>
    <TD NOWRAP STYLE="width: 16%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">2012</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Net finance costs (income)</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>64</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">46</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Income tax expense</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>2,278</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">1,020</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Site restoration</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>25</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">11</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Depreciation</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>803</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">836</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Foreign exchange gain</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>(53)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(378)</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>3,117</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">1,535</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt 4.3pt; text-align: justify">Changes in non-cash working
capital</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 73%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 14%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>2013</B></FONT></TD>
    <TD NOWRAP STYLE="width: 13%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">2012</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Inventories</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>615</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">51</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Prepayments</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>(20)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(304)</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Trade and other receivables</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>(3,488)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">529</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Trade and other payables</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>(319)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">424</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Income taxes payable</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(295)</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>(3,212)</B></FONT></TD>
    <TD NOWRAP STYLE="border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">405</FONT></TD></TR>
</TABLE>
<P STYLE="font: 5pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.3pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.3pt; text-align: justify"><B>14&nbsp;&nbsp;&nbsp;&nbsp;&#9;Related parties</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.3pt; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.3pt; text-align: justify">Key management personnel compensation:</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.3pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.3pt; text-align: justify">A number of key management personnel,
or their related parties, hold positions in other entities that result in them having control or significant influence over the
financial or operating policies of these entities.</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.3pt; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.3pt; text-align: justify">A number of these entities transacted
with the Group in the reporting period. The aggregate value of transactions and outstanding balances relating to key management
personnel and entities over which they have control or significant influence were as follows:</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.3pt; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Transactions</B></FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>3 months to Mar 31, 2013Year ended Dec 31,</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 68%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 7%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-style: italic; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B><I>Note</I></B></FONT></TD>
    <TD STYLE="width: 16%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>2013</B></FONT></TD>
    <TD NOWRAP STYLE="width: 9%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">2012</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: center">&nbsp;</TD></TR>
<TR>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Management fees, allowances and bonus paid or accrued to a company which provides the services of the Company&rsquo;s President</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(i)</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>151</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">153</FONT></TD></TR>
<TR>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Rent for office premises paid to a company owned by members of the President&rsquo;s family</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>10</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">11</FONT></TD></TR>
<TR>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Legal fees and disbursements paid to a law firm where a Director is a partner</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>48</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">40</FONT></TD></TR>
<TR>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Directors fees</FONT></TD>
    <TD STYLE="border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: center">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>56</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-right: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">42</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt 4.3pt; text-align: justify">&nbsp;</P>


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<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0 0 0 4.5pt"><B>Caledonia Mining Corporation</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0 0 0 4.3pt"><B>Notes to the Condensed Consolidated Financial Statements</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0 0 0 4.25pt"><B>For the period ended March 31, 2013 and March 31,
2012</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 4.25pt"><B>(<I>expressed</I> <I>in thousands of Canadian dollars</I>)</B></P>



<hr color="#000000">



<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt 4.3pt; text-align: justify">(i) The Group has entered
into a management agreement with Epicure Overseas S.A. (&ldquo;Epicure&rdquo;), a Panamanian Group, for management services provided
by the President. The Group is required to pay a base annual remuneration adjusted for inflation and bonuses set out in the agreement.
In the event of a change of control of the Group, Epicure can terminate the agreement and receive a lump sum payment equal to 200%
of the remuneration for the year in which the change occurs. The Company has been advised that the President holds no shares in
Epicure nor does he exercise any control over the activities of Epicure.</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt 4.3pt; text-align: justify"><B>15&nbsp;&nbsp;&nbsp;&nbsp;&#9;Operating Segments</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify">The Group's operating segments have been
identified based on geographic areas.</P>

<P STYLE="font: 9pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify">The Group has four reportable segments
as described below, which are the Group's strategic business units. The strategic business units are managed separately because
they require different technology and marketing strategies. For each of the strategic business units, the Company&rsquo;s CEO reviews
internal management reports on at least a quarterly basis. The following geographical areas describe the operations of the Group's
reportable segments: Corporate, Zimbabwe, South Africa and Zambia.</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">Information regarding the results of each reportable
segment is included below. Performance is measured based on segment profit before income tax, as included in the internal management
report that are reviewed by the Group's CFO. Segment profit is used to measure performance as management believes that such information
is the most relevant in evaluating the results of certain segments relative to other entities that operate within these industries.</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Information about reportable segments</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 39%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>2013</B></FONT></TD>
    <TD STYLE="width: 16%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Corporate</B></FONT></TD>
    <TD STYLE="width: 13%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Zimbabwe</B></FONT></TD>
    <TD STYLE="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>South Africa</B></FONT></TD>
    <TD STYLE="width: 11%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Zambia</B></FONT></TD>
    <TD STYLE="width: 11%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Total</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">External Revenue</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>19,218</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>19,218</B></FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Royalty</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>(1,349)</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>(1,349)</B></FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Production costs</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>(8,019)</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>(8,019)</B></FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Administrative expenses </FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>(708)</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>(72)</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>(395)</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>(1,175)</B></FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Depreciation</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>(797)</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>(6)</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>(803)</B></FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Finance income</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>8</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>59</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>67</B></FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Finance expense</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>(131)</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>(131)</B></FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Segment profit before income tax</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-top: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>(700)</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-top: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>8,909</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-top: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>(401)</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-top: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-top: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>7,808</B></FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Income tax expense</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>(1,965)</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>(313)</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>(2,278)</B></FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Segment profit after income tax</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>(700)</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>6,944</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>(714)</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>5,530</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Geographic segment assets:</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Current assets</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>15,964</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>12,746</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>6,681</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>43</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>35,434</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Property, Plant and Equipment</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>55</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>26,126</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>574</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>11,133</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>37,888</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Expenditure on property, plant and equipment</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>1,148</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>3</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>189</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>1,340</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0"><B>Geographic segment liabilities :</B></P>
        <P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Current liabilities</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>(279)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>(5,811)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>(1,009)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>(7)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>(7,106)</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Non-current liabilities</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>(6,658)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>(295)</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>-</B></FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>(6,953)</B></FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 5pt 0 10pt 4.3pt; text-align: justify"><B>&nbsp;</B></P>


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<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><B>&nbsp;</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0 0 0 4.5pt"><B>Caledonia Mining Corporation</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0 0 0 4.3pt"><B>Notes to the Condensed Consolidated Financial Statements</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0 0 0 4.25pt"><B>For the period ended March 31, 2013 and March 31,
2012</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 4.25pt"><B>(<I>expressed</I> <I>in thousands of Canadian dollars</I>)</B></P>



<hr color="#000000">



<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 5pt 0 10pt 4.3pt; text-align: justify"><B>15&nbsp;&nbsp;&nbsp;&nbsp;
Operating Segments
&ndash; (continued)</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="width: 37%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">2012</FONT></TD>
    <TD NOWRAP STYLE="width: 16%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Canada</FONT></TD>
    <TD NOWRAP STYLE="width: 13%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Zimbabwe</FONT></TD>
    <TD NOWRAP STYLE="width: 9%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">South Africa</FONT></TD>
    <TD NOWRAP STYLE="width: 11%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Zambia</FONT></TD>
    <TD NOWRAP STYLE="width: 14%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Total</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-style: italic">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">External Revenue</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">1</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">17,502</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">17,503</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Royalty</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(1,227)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(1,227)</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Production costs</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(6,363)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(81)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(6,444)</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Administrative and share-based payment expenses </FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(568)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(233)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(801)</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Depreciation</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(787)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(49)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(836)</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Finance cost</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(46)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(46)</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Foreign exchange gain/(loss)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">`(14)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(4)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(18)</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Segment profit before income tax</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(581)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">9,075</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(363)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">8,131</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Income tax expense</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(1,020)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(1,020)</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Segment profit after income tax</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(581)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">8,055</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(363)</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1.5pt double; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">7,111</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Geographic segment assets:</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Current assets</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">10,740</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">9,740</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">3,963</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">42</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">24,483</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Property, Plant and Equipment</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">55</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">25,318</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">1,136</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">7,236</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">33,745</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Expenditure on property, plant and equipment</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">975</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">4</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">119</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">1,098</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Geographic segment liabilities</FONT></TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Current liabilities</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">643</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">3,186</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">431</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">7</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">4,267</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Non-current liabilities</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">7,336</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">315</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">-</FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">7,651</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt 4.3pt; text-align: justify"><B>Reconciliation of reportable
segment revenues and profit or loss</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 64%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="width: 18%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>2013</B></FONT></TD>
    <TD STYLE="width: 18%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">2012</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Revenues</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Total revenue for reportable segments</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>20,944</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">19,559</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Elimination of inter-segment revenue</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>(1,726)</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(2,056)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Consolidated revenue</FONT></TD>
    <TD STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>19,218</B></FONT></TD>
    <TD NOWRAP STYLE="border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">17,503</FONT></TD></TR>
</TABLE>
<P STYLE="font: 5pt/115% Times New Roman, Times, Serif; margin: 0 0 0 4.3pt; text-align: justify"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD NOWRAP STYLE="width: 66%; padding-right: 5.4pt; padding-left: 5.4pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 16%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>2013</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; width: 18%; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">2012</FONT></TD></TR>
<TR>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Profit or loss</B></FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD NOWRAP STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Total profit or loss before tax for the reportable segments</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>9,762</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">10,424</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Elimination of inter-segment profits</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>(1,954)</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">(2,293)</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Consolidated profit before income tax</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>7,808</B></FONT></TD>
    <TD NOWRAP STYLE="vertical-align: bottom; border-top: windowtext 1pt solid; border-bottom: windowtext 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">8,131</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt 36pt"><B>&nbsp;</B></P>


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<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><B>&nbsp;</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0 0 0 4.5pt"><B>Caledonia Mining Corporation</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0 0 0 4.3pt"><B>Notes to the Condensed Consolidated Financial Statements</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0 0 0 4.25pt"><B>For the period ended March 31, 2013 and March 31,
2012</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 4.25pt"><B>(<I>expressed</I> <I>in thousands of Canadian dollars</I>)</B></P>



<hr color="#000000">



<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><B></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 18pt"></TD><TD STYLE="width: 18pt"><B>16</B></TD><TD><B>Subsequent events</B></TD></TR></TABLE>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 0 36pt"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 18pt"></TD><TD STYLE="width: 18pt">(a)</TD><TD>On April 30, 2013 Caledonia paid its second dividend of $0.05 per share (consolidated) to all shareholders of record as of
April 19, 2013. The gross dividend paid amounted to $ 2,605,897</TD></TR></TABLE>

<P STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 21.3pt"></TD><TD STYLE="width: 14.7pt"><FONT STYLE="color: black">(b)</FONT></TD><TD STYLE="text-align: justify">On January 24, 2013 Caledonia&rsquo;s shareholders approved a share consolidation which became
effective on April 12, 2013. Caledonia&rsquo;s issued common shares were consolidated on the basis of one post consolidation share
for every ten common shares currently in issue. The number of issued common shares decreased from 517,061,780 to 51,706,178 following
the implementation of the share consolidation. The consolidated shares commenced trading on the TSX on April 12, 2013. After the
consolidation the earnings per share as stated on the unaudited <FONT STYLE="color: black">Condensed consolidated statements of
comprehensive income would be as shown below.</FONT></TD></TR></TABLE>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt 36pt; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 61%; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 8%; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-style: italic; text-align: center">&nbsp;</TD>
    <TD STYLE="width: 14%; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>2013</B></FONT></TD>
    <TD STYLE="width: 3%; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="width: 14%; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">2012</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-style: italic; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right">&nbsp;</TD></TR>
<TR>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>Earnings per share </B></FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-style: italic; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Basic earnings per share</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-style: italic; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>0.09</B></FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">0.14</FONT></TD></TR>
<TR>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">Diluted earnings per share</FONT></TD>
    <TD STYLE="vertical-align: bottom; padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-style: italic; text-align: center">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; font-weight: bold; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black"><B>0.09</B></FONT></TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right">&nbsp;</TD>
    <TD STYLE="padding-right: 5.75pt; padding-left: 5.75pt; line-height: 115%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; color: black">0.14</FONT></TD></TR>
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    <TD STYLE="vertical-align: top; font-weight: bold; line-height: 115%; text-align: justify; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="35"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>BOARD OF DIRECTORS</B></FONT></TD>
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    <TD COLSPAN="2" STYLE="vertical-align: top; text-align: justify; line-height: 115%; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="35">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-style: italic; line-height: 115%; text-align: justify; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="35"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>Canada</I></FONT></TD>
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    <TD COLSPAN="2" STYLE="vertical-align: top; text-align: justify; line-height: 115%; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="35">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-align: justify; line-height: 115%; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="35">&nbsp;</TD>
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<TR>
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    <TD COLSPAN="2" STYLE="text-align: justify; line-height: 115%; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="35"><FONT STYLE="font-family: Times New Roman, Times, Serif">S. E. Hayden</FONT></TD>
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    <TD COLSPAN="2" STYLE="vertical-align: top; font-style: italic; line-height: 115%; text-align: justify; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="35"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>President and Chief Executive Officer</I></FONT></TD>
    <TD COLSPAN="2" STYLE="font-style: italic; line-height: 115%; text-align: justify; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="35"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>President and Chief Executive Officer</I></FONT></TD>
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    <TD COLSPAN="2" STYLE="vertical-align: top; font-style: italic; line-height: 115%; text-align: justify; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="35"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>Johannesburg, South Africa</I></FONT></TD>
    <TD COLSPAN="2" STYLE="font-style: italic; line-height: 115%; text-align: justify; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="35"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>Johannesburg, South Africa</I></FONT></TD>
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    <TD COLSPAN="2" STYLE="vertical-align: top; text-align: justify; line-height: 115%; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="35">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-align: justify; line-height: 115%; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="35">&nbsp;</TD>
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<TR>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-align: justify; line-height: 115%; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="35"><FONT STYLE="font-family: Times New Roman, Times, Serif">J. Johnstone (1) (6)</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify; line-height: 115%; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="35"><FONT STYLE="font-family: Times New Roman, Times, Serif">S. R. Curtis</FONT></TD>
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<TR>
    <TD COLSPAN="2" STYLE="vertical-align: top; font-style: italic; line-height: 115%; text-align: justify; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="35"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>Retired Mining Engineer</I></FONT></TD>
    <TD COLSPAN="2" STYLE="font-style: italic; line-height: 115%; text-align: justify; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="35"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>Vice-President Finance and Chief Financial Officer</I></FONT></TD>
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<TR>
    <TD COLSPAN="2" STYLE="vertical-align: top; font-style: italic; line-height: 115%; text-align: justify; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="35"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>Gibsons, British Columbia, Canada</I></FONT></TD>
    <TD COLSPAN="2" STYLE="font-style: italic; line-height: 115%; text-align: justify; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="35"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>Johannesburg, South Africa </I></FONT></TD>
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<TR>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-align: justify; line-height: 115%; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="35">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-align: justify; line-height: 115%; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="35">&nbsp;</TD>
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<TR>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-align: justify; line-height: 115%; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="35"><FONT STYLE="font-family: Times New Roman, Times, Serif">R. W. Babensee (1) (2)</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify; line-height: 115%; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="35"><FONT STYLE="font-family: Times New Roman, Times, Serif">Dr. T. Pearton (6)</FONT></TD>
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<TR>
    <TD COLSPAN="2" STYLE="vertical-align: top; font-style: italic; line-height: 115%; text-align: justify; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="35"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>Chartered Accountant &ndash; Retired</I></FONT></TD>
    <TD COLSPAN="2" STYLE="font-style: italic; line-height: 115%; text-align: justify; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="35"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>Vice-President Exploration</I></FONT></TD>
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<TR>
    <TD COLSPAN="2" STYLE="vertical-align: top; font-style: italic; line-height: 115%; text-align: justify; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="35"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>Toronto, Ontario, Canada</I></FONT></TD>
    <TD COLSPAN="2" STYLE="font-style: italic; line-height: 115%; text-align: justify; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="35"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>Johannesburg, South Africa</I></FONT></TD>
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<TR>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-align: justify; line-height: 115%; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="35">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-align: justify; line-height: 115%; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="35">&nbsp;</TD>
</TR>
<TR>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-align: justify; line-height: 115%; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="35"><FONT STYLE="font-family: Times New Roman, Times, Serif">S. R. Curtis (5) (7)</FONT></TD>
    <TD COLSPAN="2" STYLE="text-align: justify; line-height: 115%; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="35"><FONT STYLE="font-family: Times New Roman, Times, Serif">J.M. Learmonth (7)</FONT></TD>
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<TR>
    <TD COLSPAN="2" STYLE="vertical-align: top; font-style: italic; line-height: 115%; text-align: justify; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="53"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>Vice-President Finance and Chief Financial officer</I></FONT></TD>
    <TD COLSPAN="2" STYLE="font-style: italic; line-height: 115%; text-align: justify; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="53"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>Vice-President Business Development</I></FONT></TD>
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    <TD COLSPAN="2" STYLE="vertical-align: top; font-style: italic; line-height: 115%; text-align: justify; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="35"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>Johannesburg, South Africa</I></FONT></TD>
    <TD COLSPAN="2" STYLE="font-style: italic; line-height: 115%; text-align: justify; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="35"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>Johannesburg, South Africa</I></FONT></TD>
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    <TD COLSPAN="2" STYLE="text-align: justify; line-height: 115%; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="34">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-align: justify; line-height: 115%; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="34">&nbsp;</TD>
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    <TD COLSPAN="2" STYLE="vertical-align: top; text-align: justify; line-height: 115%; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="35"><FONT STYLE="font-family: Times New Roman, Times, Serif">L.A. Wilson (1) (7)</FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; text-align: justify; line-height: 115%; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="35">&nbsp;</TD>
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<TR>
    <TD COLSPAN="2" STYLE="vertical-align: top; font-style: italic; line-height: 115%; text-align: justify; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="35"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>Non- executive Director</I></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; font-style: italic; line-height: 115%; text-align: justify; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="35">&nbsp;</TD>
</TR>
<TR>
    <TD COLSPAN="2" STYLE="vertical-align: top; font-style: italic; line-height: 115%; text-align: justify; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="35"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>New York, United States of America</I></FONT></TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; font-style: italic; line-height: 115%; text-align: justify; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="35">&nbsp;</TD>
</TR>
<TR>
    <TD COLSPAN="2" STYLE="vertical-align: top; font-style: italic; line-height: 115%; text-align: justify; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="35">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; line-height: 115%; text-align: justify; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="35"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>BOARD COMMITTEES</B></FONT></TD>
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<TR>
    <TD COLSPAN="3" STYLE="vertical-align: top; text-align: justify; line-height: 115%; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="34"><FONT STYLE="font-family: Times New Roman, Times, Serif">J. L. Kelly (1) (7)</FONT></TD>
    <TD STYLE="text-align: justify; line-height: 115%; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="34"><FONT STYLE="font-family: Times New Roman, Times, Serif">(1) Audit Committee</FONT></TD></TR>
<TR>
    <TD COLSPAN="3" STYLE="vertical-align: top; font-style: italic; line-height: 115%; text-align: justify; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="34"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>Non- executive Director </I></FONT></TD>
    <TD STYLE="text-align: justify; line-height: 115%; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="34"><FONT STYLE="font-family: Times New Roman, Times, Serif">(2) Compensation Committee</FONT></TD></TR>
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    <TD STYLE="text-align: justify; line-height: 115%; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="34"><FONT STYLE="font-family: Times New Roman, Times, Serif">(3) Corporate Governance Committee</FONT></TD>
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<tr>
    <TD COLSPAN="3" STYLE="vertical-align: top; text-align: justify; line-height: 115%; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="34"></TD>
    <TD STYLE="text-align: justify; line-height: 115%; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="34"><FONT STYLE="font-family: Times New Roman, Times, Serif">(4) Nominating Committee</FONT></TD>
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<TR>
    <TD COLSPAN="3" STYLE="vertical-align: top; font-style: italic; line-height: 115%; text-align: justify; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="34">&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif">R. Patricio (7)</FONT></TD>
    <TD STYLE="text-align: justify; line-height: 115%; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="34">(5) Disclosure Committee</TD></TR>
<tr>
    <TD COLSPAN="3" STYLE="vertical-align: top; text-align: justify; line-height: 115%; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="34"><FONT STYLE="font-family: Times New Roman, Times, Serif"><I>Non- executive Director</I></FONT></TD>
    <TD STYLE="text-align: justify; line-height: 115%; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="34">(6) Technical Committee</TD>
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<tr>
    <TD COLSPAN="3" STYLE="vertical-align: top; text-align: justify; line-height: 115%; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="34"><I>Toronto, Ontario, Canada</I></TD>
    <TD STYLE="text-align: justify; line-height: 115%; padding-left: 4.3pt; padding-right: 5.4pt; padding-bottom: 10pt" height="34">(7) Strategic Planning Committee</TD>
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<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><B>&nbsp;</B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt 4.3pt; text-align: justify"><B>CORPORATE DIRECTORY as
at May 9, 2013</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 11pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 53%; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; font-weight: bold; line-height: 115%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>CORPORATE OFFICES</B></FONT></TD>
    <TD STYLE="width: 47%; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 5.4pt; font-weight: bold; line-height: 115%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>SOLICITORS</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; font-weight: bold; line-height: 115%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Canada - Head Office</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; font-weight: bold; line-height: 115%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Tupper, Jonsson &amp; Yeadon</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; font-weight: bold; line-height: 115%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Caledonia Mining Corporation</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif">1710-1177 West Hastings St, Vancouver,</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Suite 1201, 67 Yonge Street</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif">British Columbia V6E 2L3 Canada</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Toronto, Ontario M5E 1J8 Canada</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Tel:(1)(416) 369-9835 Fax:(1)(416) 369-0449</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; font-weight: bold; line-height: 115%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Borden Ladner Gervais LLP</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif">info@caledoniamining.com</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Suite 4100, Scotia Plaza</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; font-weight: bold; line-height: 115%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>South Africa &ndash; Africa Office</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif">40 King Street West</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; font-weight: bold; line-height: 115%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Greenstone Management Services (Pty) Ltd.&#9;&#9;AUDITORS</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Toronto, Ontario M5H 3Y4 Canada</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif">P.O. Box 834&#9;&#9;<B>&#9;&#9;BDO Dunwoody LLP</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Saxonwold 2132&#9;&#9;&#9;<B>Chartered Accountants</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; font-weight: bold; line-height: 115%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>AUDITORS</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif">South Africa&#9;&#9;&#9;Suite 3300, 200 Bay Street</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif">KPMG Inc.</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Tel: (27)(11) 447-2499 Fax: (27)(11) 447-2554</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif">85 Empire Road</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Parktown 2193</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; font-weight: bold; line-height: 115%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Zambia</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif">South Africa</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Caledonia Mining (Zambia) Limited</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">Tel: +27 83 445 1400, Fax: + 27 11 647 6018</P>
        <P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt 4.3pt; text-align: justify">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif">P.O. Box 36604</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Lusaka, Zambia&#9;&#9;<B>&#9;&#9;</B>Suite 400 200 University Ave</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; font-weight: bold; line-height: 115%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>REGISTRAR &amp; TRANSFER AGENT</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Tel:(260)(1) 29-1574 Fax(260)(1) 29-2154</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Equity Transfer Services Inc.</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Suite 400&nbsp;200 University Ave.</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; font-weight: bold; line-height: 115%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Zimbabwe</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Toronto, Ontario M5H 4H1 Canada</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; font-weight: bold; line-height: 115%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Caledonia Holdings Zimbabwe (Limited)</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Tel: (416) 361 0152 Fax: (416) 361 0470</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif">P.O. Box CY1277</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Causeway, Harare</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; font-weight: bold; line-height: 115%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>BANKERS</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Zimbabwe</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Canadian Imperial Bank of Commerce</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Tel: (263) (4) 701&nbsp;152/4 Fax: (263)(4) 702 248</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif">6266 Dixie Road</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Mississauga, Ontario L5T 1A7 Canada</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; font-weight: bold; line-height: 115%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>CAPITALIZATION </B>at May 9, 2013&#9;&#9;&#9;<B>RBC Capital Markets</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Authorised: Unlimited&#9;&#9;&#9;71 Queen Victoria Street</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; font-weight: bold; line-height: 115%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>NOMAD</B></FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; font-weight: bold; line-height: 115%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Shares, Warrants and Options Issued:</B></FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 12.1pt 10pt 0; text-align: justify">Numis Securities Limited</P>
        <P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt 4.3pt; text-align: justify">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Common Shares: 521,179,46&#9;&#9;&#9;Tel: +44 20 7653 4000</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif">The London Stock Exchange Building</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Warrants:&#9; Nil</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif">10 Paternoster Square</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Options: 26,579,20</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif">London EC4M 7LT</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Tel: +44&nbsp;207&nbsp;260 1000</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; font-weight: bold; line-height: 115%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>SHARES LISTED</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Toronto Stock Exchange Symbol &ldquo;CAL&rdquo;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; font-weight: bold; line-height: 115%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>JOINT BROKERS (AIM)</B></FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif">NASDAQ OTCQX Symbol &quot;CALVF&quot;</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">
        <P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 12.1pt 10pt 0; text-align: justify">Numis Securities Limited</P>
        <P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt 4.3pt; text-align: justify">&nbsp;</P></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif">London &ldquo;AIM&rdquo; Market Symbol &ldquo;CMCL&rdquo;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif">WH Ireland</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif">24 Martin Lane</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif">London EC4R ODR</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-bottom: 10pt; padding-left: 4.3pt; text-align: justify; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif">Tel: +44&nbsp;207&nbsp;220 1751</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt/115% Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt 4.3pt; text-align: justify">&nbsp;</P>



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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
