- Caledonia Mining Corporation Plc
Caledonia declares an increased quarterly dividend.
St Helier, January 3, 2020 - Caledonia Mining Corporation Plc ("Caledonia" or the "Company") today announces that the Board of Directors has declared an increased quarterly dividend of seven-and-a- half United States cents (US$0.075) on each of the Company's common shares.

Highlights

· 9.1 per cent increase from the previous quarterly dividend of 6.875 cents

· Financial performance has improved due to increased production and the continued higher gold price

· Central Shaft to be commissioned in Q4 2020

· Target production at 80,000 ounces of gold per annum from 2022

Commenting on the announcement, Steve Curtis, Chief Executive Officer, said:

"I am pleased to announce a 9.1 per cent increase in the dividend which reflects our increased confidence in the outlook for our business. As we reported in mid-November 2019 when we published the results for the third quarter of 2019, our financial performance has improved due to increased production and the continued higher gold price. This improvement has continued through the final quarter of 2019.

"As we approach the end of the five-year investment programme at Blanket Mine, we anticipate the rate of capital expenditure will begin to reduce from the middle of 2020, which gives us greater flexibility to consider deploying some of our cash reserves on an increased dividend.

"We expect the Central Shaft to be commissioned in the fourth quarter of 2020; thereafter we look forward to further increases in operating cash flow as production increases to the target rate of 80,000 ounces of gold per annum from 2022, as capital expenditure falls further and we begin to realise the operational efficiencies arising from the new shaft.

"The Board will review Caledonia's future dividend distributions as appropriate while considering the balance between delivering returns to shareholders, pursuing the significant growth opportunities within Zimbabwe and maintaining a prudent approach to financial management."

The relevant dates relating to the dividend are as follows:

· Ex-dividend date: January 16,2020

· Record date: January 17, 2020

· Dividend cheque mailing date: January 31, 2020

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

Caledonia's strategy to maximise shareholder value includes a quarterly dividend policy which the Board of Directors adopted in 2014. The Board will consider future increases in the dividend as appropriate in line with its prudent approach to risk management.

About Caledonia Mining

Caledonia's primary asset is a 49% interest in an operating gold mine in Zimbabwe ("Blanket Mine"). In November 2018, Caledonia announced that it had signed a legally binding sale agreement to increase its holding in Blanket Mine to 64%, subject to receipt of, amongst other things, regulatory approvals. Caledonia's shares are listed on the NYSE American (symbol: CMCL) and on the Toronto Stock Exchange (symbol: CAL) and depositary interests representing the shares are traded on London's AIM (symbol: CMCL).

As at September 30, 2019, Caledonia had cash of approximately US$8.0 million. Blanket Mine plans to increase production from 54,511 ounces of gold in 2018 to approximately 75,000 ounces in 2021 and approximately 80,000 ounces in 2022; Blanket Mine's target production for 2019 is between 50,000 and 53,000 ounces[1]. Caledonia expects to publish its results for the year to December 31, 2019 on or around March 20, 2020.