----

| [ ] | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|-----|------------------------------------------------------------------------------------------------|

| [x] | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|-----|--------------------------------------------------------------------------------------|

| [ ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|-----|------------------------------------------------------------------------------------------|

| [ ] | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|-----|---------------------------------------------------------------------------------------------|

----

|  | Common Shares, without par value 52,173,908 |  |
|--|---------------------------------------------|--|

----

----

| ITEM 1 - Identity of Directors, Senior Management and Advisers       | 9                                                       |
|----------------------------------------------------------------------|---------------------------------------------------------|
| ITEM 2 - OFFER STATISTICS AND EXPECTED TIMETABLE                     | 9                                                       |
| ITEM 3 - KEY INFORMATION                                             | 9                                                       |
| A.                                                                   | Selected Financial Data                                 | 9 |
| B.                                                                   | Capitalization and Indebtedness                         | 10 |
| C.                                                                   | Reasons for the Offer and Use of Proceeds               | 10 |
| D.                                                                   | Risk Factors                                            | 10 |
| ITEM 4 - INFORMATION ON THE COMPANY                                  | 18                                                      |
| A.                                                                   | History and Development of the Company                  | 18 |
| B.                                                                   | Business Overview                                       | 20 |
| C.                                                                   | Organizational Structure                                | 29 |
| D.                                                                   | Property, Plant and Equipment                           | 29 |
| ITEM 4A - UNRESOLVED STAFF COMMENTS                                  | 30                                                      |
| ITEM 5 - OPERATING AND FINANCIAL REVIEW AND PROSPECTS                | 30                                                      |
| A.                                                                   | Operational Results                                     | 30 |
| B.                                                                   | Liquidity and Capital Resources                         | 35 |
| C.                                                                   | Research and development, patents and licences          | 36 |
| D.                                                                   | Trend Information                                       | 36 |
| E.                                                                   | Off-Balance Sheet Arrangements                          | 36 |
| F.                                                                   | Tabular Disclosure of Contractual Obligations           | 36 |
| ITEM 6 - DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES                  | 37                                                      |
| A.                                                                   | Directors and Senior Management                         | 37 |
| B.                                                                   | Compensation                                            | 40 |
| C.                                                                   | Board Practices                                         | 40 |
| D.                                                                   | Employees                                               | 41 |
| E.                                                                   | Share Ownership                                         | 42 |
| ITEM 7 - MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS           | 44                                                      |
| A.                                                                   | Major Shareholders                                      | 44 |
| B.                                                                   | Related Party Transactions                              | 44 |
| C.                                                                   | Interests of Experts and Counsel                        | 45 |
| ITEM 8 - FINANCIAL INFORMATION                                       | 45                                                      |
| A.                                                                   | Consolidated Statements and Other Financial Information | 45 |
| B.                                                                   | Significant Changes                                     | 46 |
| ITEM 9 - THE OFFERING AND LISTING                                    | 46                                                      |
| A.                                                                   | Offering and Listing Details                            | 46 |
| ITEM 10 - ADDITIONAL INFORMATION                                     | 49                                                      |
| A.                                                                   | Share Capital                                           | 49 |
| B.                                                                   | Articles of Association                                 | 49 |
| C.                                                                   | Material Contracts                                      | 50 |
| D.                                                                   | Exchange Controls                                       | 50 |
| E.                                                                   | Taxation                                                | 50 |
| F.                                                                   | Dividends and Paying Agents                             | 55 |
| G.                                                                   | Statement by Experts                                    | 55 |
| H.                                                                   | Documents on Display                                    | 55 |
| I.                                                                   | Subsidiary Information                                  | 56 |
| ITEM 11 - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK | 56                                                      |
| A.                                                                   | Currency Risk                                           | 56 |
| B.                                                                   | Interest Rate Risk                                      | 57 |

----

| C.                                                                                     | Concentration of Credit Risk | 57 |
|----------------------------------------------------------------------------------------|------------------------------|----|
| D.                                                                                     | Liquidity Risk               | 57 |
| E.                                                                                     | Commodity Price Risk         | 57 |
| ITEM 12 - DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES                       | 58                           |
| ITEM 13 - DEFAULTS, DIVIDEND ARREARS AND DELINQUENCIES                                 | 58                           |
| ITEM 14 - MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS | 58                           |
| ITEM 15 - CONTROLS AND PROCEDURES                                                      | 58                           |
| ITEM 16A - AUDIT COMMITTEE FINANCIAL EXPERT                                            | 60                           |
| ITEM 16B - CODE OF ETHICS                                                              | 60                           |
| ITEM 16C - PRINCIPAL ACCOUNTANT FEES AND SERVICES                                      | 60                           |
| ITEM 16D - EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES                  | 60                           |
| ITEM 16E - PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS      | 61                           |
| ITEM 16F - CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT                                | 61                           |
| ITEM 16G - CORPORATE GOVERNANCE                                                        | 61                           |
| ITEM 16H - MINE SAFETY DISCLOSURE                                                      | 61                           |
| ITEM 17 - FINANCIAL STATEMENTS                                                         | 61                           |
| ITEM 18 - FINANCIAL STATEMENTS                                                         | 61                           |
| ITEM 19 – EXHIBITS                                                               | 62                           |

----

----

----

----

| A. | Selected Financial Data |
|----|-------------------------|

| Financial – All in USD'000's unless indicated otherwise                                                          | 2015    | 2014(2) | 2013(2)  | 2012(2)  | 2011(2) |
|------------------------------------------------------------------------------------------------------------------------|---------|---------|----------|----------|---------|
| Revenue                                                                                                                | 48,977  | 53,313  | 63,217   | 75,236   | 56,306  |
| Gross Profit                                                                                                           | 13,181  | 18,543  | 29,010   | 40,923   | 29,430  |
| Expense - (General and administration,  interest and foreign exchange including  provisions and impairments) | (5,221) | (6,615) | (19,878) | (20,980) | (8,613) |
| Net Income /(Loss) – after tax from operations                                                                   | 5,590   | 5,946   | (477)    | 7,122    | 12,261  |
| Net Income /(Loss) – after income taxes from continuing operations                                               | 5,590   | 5,946   | (477)    | 7,122    | 12,261  |
| Profit attributable to owners of the Company                                                                           | 4,779   | 4,435   | (2.967)  | 8,515    | 12,261  |
| Net cash and cash equivalent                                                                                           | 10,880  | 23,082  | 21,901   | 28,125   | 9,075   |
| Current Assets                                                                                                         | 23,562  | 31,743  | 33,800   | 35,525   | 17,800  |
| Total Assets                                                                                                           | 72,838  | 66,479  | 65,072   | 72,297   | 51,380  |
| Current Liabilities                                                                                                    | 8,397   | 4,972   | 7,044    | 9,341    | 4,477   |
| Long Term Liabilities                                                                                                  | 14,080  | 11,164  | 9,437    | 6,973    | 7,669   |
| Working Capital                                                                                                        | 15,165  | 26,771  | 26,756   | 26,184   | 13,323  |
| Net Assets                                                                                                             | 50,361  | 50,343  | 48,591   | 55,983   | 39,233  |
| Total Capital Expenditures including Mineral Properties (Cash)                                                         | 16,567  | 6,150   | 11,396   | 7,910    | 8,620   |
| Dividend per share – cents1                                                                                      | 4.8     | 5.4     | 9.8      | -        | -       |
| Earnings per share – cents1                                                                                      | 8.9     | 8.4     | (5.4)    | 17.2     | 24.0    |
| Diluted earnings per share – cents 1                                                                             | 8.9     | 8.4     | (5.4)    | 17.2     | 24.0    |

----

|                                                 | 2015   | 2014   | 2013   | 2012   | 2011   |
|------------------------------------------------------|--------|--------|--------|--------|--------|
| Market Capitalization (USD Thousands) at December 31 | 32,209 | 31,791 | 39,088 | 46,301 | 55,060 |
| Shares Outstanding (Thousands)(1)                    | 52,078 | 52,117 | 52,117 | 51,446 | 50,549 |
| Options  Outstanding (Thousands)(1)             | 2,241  | 2,565  | 2,848  | 3,330  | 4,254  |

| B. | Capitalization and Indebtedness |
|----|---------------------------------|

| C. | Reasons for the Offer and Use of Proceeds |
|----|-------------------------------------------|

| D. | Risk Factors |
|----|--------------|

----

| - | cancellation or renegotiation of contracts; |
|---|---------------------------------------------|

| - | changes in local and foreign laws and regulations; |
|---|----------------------------------------------------|

| - | changes in tax laws; |
|---|----------------------|

| - | delays or refusal in granting prospecting permissions, mining authorizations and work permits for foreign management staff; |
|---|-----------------------------------------------------------------------------------------------------------------------------|

| - | environmental controls and permitting; |
|---|----------------------------------------|

| - | expropriation or nationalization of property or assets; |
|---|---------------------------------------------------------|

| - | foreign exchange controls; |
|---|----------------------------|

| - | government mandated social expenditures; |
|---|------------------------------------------|

| - | import and export regulation, including restrictions on the sale of their production in foreign currencies; |
|---|-------------------------------------------------------------------------------------------------------------|

| - | industrial relations and the associated stability thereof; |
|---|------------------------------------------------------------|

| - | inflation of cost that is not compensated for by a currency devaluation; |
|---|--------------------------------------------------------------------------|

| - | requirement that a foreign subsidiary or operating unit have a domestic joint venture partner, which, possibly, the foreign company must subsidize; |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| - | restrictions on the ability of local operating companies to sell their production for foreign currencies, and on the ability of such companies to hold these foreign currencies in offshore and/or local bank accounts; |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | restrictions on the ability of a foreign company to have management control of exploration and/or development and/or mining operations; |
|---|-----------------------------------------------------------------------------------------------------------------------------------------|

| - | restrictions on the remittance of dividend and interest payments offshore; |
|---|----------------------------------------------------------------------------|

| - | retroactive tax or royalty claims; |
|---|------------------------------------|

| - | risks of loss due to civil strife, acts of war, guerrilla activities, insurrection and terrorism; |
|---|---------------------------------------------------------------------------------------------------|

| - | royalties and tax increases or claims by governmental entities; |
|---|-----------------------------------------------------------------|

| - | unreliable local infrastructure and services such as power, water, communications and transport links; |
|---|--------------------------------------------------------------------------------------------------------|

| - | demands or actions by native or indigenous groups; |
|---|----------------------------------------------------|

| - | other risks arising out of foreign sovereignty over the areas in which operations are conducted; and |
|---|------------------------------------------------------------------------------------------------------|

| - | lack of investment funding; |
|---|-----------------------------|

----

----

----

| · | actual or expected fluctuations in our operating results; |
|--------|-----------------------------------------------------------|

| · | actual or expected changes in our growth rates or our competitors' growth rates; |
|--------|----------------------------------------------------------------------------------|

| · | changes in the market price of gold; |
|--------|--------------------------------------|

| · | changes in the demand for gold; |
|--------|---------------------------------|

| · | high extraction costs; |
|--------|------------------------|

| · | accidents; |
|--------|------------|

| · | changes in market valuations of similar companies; |
|--------|----------------------------------------------------|

| · | additions to or departures of our key personnel; |
|--------|--------------------------------------------------|

| · | actual or anticipated fluctuations in our quarterly operating results or those of our competitors; |
|--------|----------------------------------------------------------------------------------------------------|

| · | publication of research reports by securities analysts about us or our competitors in the industry; |
|--------|-----------------------------------------------------------------------------------------------------|

| · | our failure or the failure of our competitors to meet analysts' projections or guidance that we or our competitors may give to the market; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------|

| · | fluctuations of exchange rates between the U.S. dollar and the South African rand; |
|--------|------------------------------------------------------------------------------------|

| · | changes or proposed changes in laws and regulations affecting the gold mining industry; |
|--------|-----------------------------------------------------------------------------------------|

| · | changes in trading volume of our common shares on the TSX, the AIM or the OTCQX; |
|--------|----------------------------------------------------------------------------------|

| · | sales or perceived potential sales of our common shares by us, our directors, senior management or our shareholders in the future; |
|--------|------------------------------------------------------------------------------------------------------------------------------------|

| · | short selling or other market manipulation activities; |
|--------|--------------------------------------------------------|

| · | announcement or expectation of additional financing efforts; |
|--------|--------------------------------------------------------------|

| · | terrorist acts, acts of war or periods of widespread civil unrest; |
|--------|--------------------------------------------------------------------|

| · | natural disasters and other calamities; |
|--------|-----------------------------------------|

| · | litigation involving us, including: shareholder litigation, investigations or audits by regulators into our  operations; or proceedings initiated by our competitors or clients; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | strategic decisions by us or our competitors, such as acquisitions, divestitures, spin-offs, joint ventures, strategic investments or changes in business strategy; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | the passage of legislation or other regulatory developments affecting us or our industry; |
|--------|-------------------------------------------------------------------------------------------|

| · | fluctuations in the valuation of companies perceived by investors to be comparable to us; and |
|--------|-----------------------------------------------------------------------------------------------|

| · | conditions in the U.S., Canadian and United Kingdom financial markets or changes in general economic conditions. |
|--------|------------------------------------------------------------------------------------------------------------------|

----

----

----

| · | the last day of the fiscal year during which we have total annual gross revenues of $1,000,000,000 (as such amount is indexed for inflation every five years by the SEC or more; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | the last day of our fiscal year following the fifth anniversary of the completion of our first sale of common equity securities pursuant to an effective registration statement under the Securities Act; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | the date on which we have, during the previous three-year period, issued more than $1,000,000,000 in non- convertible debt; or |
|--------|--------------------------------------------------------------------------------------------------------------------------------|

----

| · | the date on which we are deemed to be a "large accelerated filer", as defined in Rule 12b–2 of the Exchange Act, which would occur if the market value of our common shares that are held by non-affiliates exceeds $700,000,000 as of the last day of our most recently-completed second fiscal quarter. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A. | History and Development of the Company |
|----|----------------------------------------|

| · | the Company has no commercial operations in Canada, hence there is no reason for it to be domiciled in Canada and subject to Canadian taxes and the compliance costs associated with being a Canadian tax entity; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Jersey is more conveniently located in relation to the Company's operations in Southern Africa and the majority of its shareholder base which ranges from continental Europe to South Africa and North America; and |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Canadian withholding tax, which is currently applicable to dividends paid to the Company's shareholders outside Canada, will be eliminated. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------|

|  | African Office - South Africa | Registered Office |
|--|-------------------------------|-------------------|

|  | Caledonia Mining South Africa Proprietary Limited | 43-45 La Motte Street |
|--|---------------------------------------------------|-----------------------|

|  | 4th Floor, 1 Quadrum office park | Jersey Channel Islands |
|--|----------------------------------|------------------------|

|  | Johannesburg, Gauteng, 2198 | JE4 8SD |
|--|-----------------------------|---------|

|  | South Africa | (44) 1534 702 800 |
|--|--------------|-------------------|

----

| · | Sold a 16% interest to the National Indigenisation and Economic Empowerment Fund ("NIEEF") for $11.74 million. |
|--------|----------------------------------------------------------------------------------------------------------------|

| · | Sold a 15% interest to Fremiro, which is owned by Indigenous Zimbabweans, for $11.01 million. |
|--------|-----------------------------------------------------------------------------------------------|

| · | Sold a 10% interest to Blanket Employee Trust Services (Private) Limited ("BETS") for the benefit of present and future managers and employees for $7.34 million. The shares in BETS are held by the Blanket Mine Employee Trust (Employee Trust) with Blanket Mine's employees holding participation units in the Employee Trust. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | And donated a 10% ownership interest to the Gwanda Community Share Ownership Trust (Community Trust). In addition Blanket Mine paid a non-refundable donation of $1 million to the Community Trust. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| · | Caledonia Holdings Zimbabwe (Private) Limited subscribed for 4,755,556 Founder shares with a par value of $0.012 at $1.051; |
|--------|-----------------------------------------------------------------------------------------------------------------------------|

| · | A-class shareholders (NIEEF, BETS and Fremiro) subscribed for 3,979,140 A-class shares with a par value of $0.005 at $0.57; and |
|--------|---------------------------------------------------------------------------------------------------------------------------------|

| · | GCSOT subscribed for 970,522 B class shares with a par value of $0.005 for a nominal amount of $4,852 |
|--------|-------------------------------------------------------------------------------------------------------|

| B. | Business Overview |
|----|-------------------|

----

----

| Mineral Resource Category    | Tonnes(metric) | Grade(Au g/t) | Gold Content (ounces) |
|------------------------------|----------------|---------------|-----------------------|
| Measured Resources           | 1,572,733      | 3.91          | 197,606               |
| Indicated Resources          | 2,478,902      | 3.77          | 300,288               |
| Total Measured and Indicated | 4,051,635      | 3.82          | 497,895               |
| Inferred Resources*          | 3,344,831      | 5.11          | 549,963               |

| Mineral Reserve Category             | Tonnes(metric) | Grade(Au g/t) | Gold Content (ounces) |
|--------------------------------------|----------------|---------------|-----------------------|
| Proven Reserves                      | 856,005        | 3.40          | 93,638                |
| Probable Reserves                    | 2,077,828      | 3.78          | 252,758               |
| Total Proven & Probable Reserves | 2,933,833      | 3.67          | 346,396               |

----

| · | a cut-off grade (pay limit) of 2.11 g/t based on a gold price of US$1200/oz was applied for the Mineral Resources; |
|--------|--------------------------------------------------------------------------------------------------------------------|

| · | a pay limit of 2.30 g/t based on a gold price of US$1100/oz was applied for Mineral Reserves; |
|--------|-----------------------------------------------------------------------------------------------|

| · | tonnages were increased by 7.5% to allow for dilution at zero grade and the grade adjusted accordingly; and |
|--------|-------------------------------------------------------------------------------------------------------------|

| · | a metallurgical recovery of 93% was applied, marginally less than the 4 year historical 93.2% recovered grade. |
|--------|----------------------------------------------------------------------------------------------------------------|

| Mineral Resource Category    | Tonnes(metric) | Grade(Au g/t) | Gold Content (ounces) |
|------------------------------|----------------|---------------|-----------------------|
| Measured Resources           | 1,412,100      | 3.91          | 177,700               |
| Indicated Resources          | 3,334,800      | 4.30          | 460,700               |
| Total Measured and Indicated | 4,746,900      | 4.18          | 638,400               |
| Inferred Resources*          | 2,591,000      | 5.03          | 419,000               |

| Mineral Reserve Category             | Tonnnes(metric) | Grade(Au g/t) | Gold Content (ounces) |
|--------------------------------------|-----------------|---------------|-----------------------|
| Proven Reserves                      | 717,700         | 3.41          | 78,640                |
| Probable Reserves                    | 1,912,200       | 3.56          | 218,860               |
| Total Proven & Probable Reserves | 2,629,900       | 3.52          | 297,500               |

----

|   Classification       | 2013  | 2014  | 2015  |
|----------------------------------|-------|-------|-------|
| Fatal                            | 1     | -     | 1     |
| Lost time injury                 | 12    | 6     | 8     |
| Restricted work activity         | 21    | 31    | 31    |
| First aid                        | 8     | 8     | 15    |
| Medical aid                      | 10    | 8     | 5     |
| Occupational illness             | -     | -     | -     |
| Total                            | 52    | 53    | 60    |
| Incidents                        | 52    | 39    | 47    |
| Near misses                      | 17    | 9     | 14    |
| Disability Injury Frequency Rate | 0.745 | 0.69  | 0.508 |
| Total Injury Frequency Rate      | 3.135 | 3.415 | 3.403 |
| Man-hours worked (thousands)     | 3,233 | 3,201 | 3,532 |

----

| Payments to the Community and the Zimbabwe Government(US$'000's)  |
|------------------------------------------------------------------------|
|                                                                   |   | Community and Social Investment | Payments to GCSOT | Payments to Zimbabwe Government | Total |
| Year 2013                                                              |   | 2,147 | 2,000 | 15,354 | 19,501 |
| Year 2014                                                              |   | 35 | - | 12,319 | 12,354 |
| Year 2015                                                              |   | 58 | - | 7,376 | 7,376 |

| Blanket Mine Production Statistics  |
|------------------------------------------|
|                                     |   | Tonnes Milled(t) | Gold Head (Feed) Grade (g/t Au) | Gold Recovery(%) | Gold Produced(oz) |
| Year 2013                                |   | 392,320 | 3.88 | 93.3 | 45,530 |
| Year 2014                                |   | 390,735 | 3.55 | 93.4 | 41,771 |
| Year 2015                                |   | 440,079 | 3.25 | 93.0 | 42,804 |
| January 2016                             |   | 40,905 | 3.20 | 93.0 | 3,915 |

| i. | On-mine Cost per ounce, which shows the on-mine cash costs of producing an ounce of gold; |
|----|-------------------------------------------------------------------------------------------|

| ii. | All-in Sustaining Cost per ounce, which shows the On-mine Cost per ounce plus additional costs incurred outside the mine (i.e. at offices in Harare, Johannesburg and Toronto) and the costs associated with maintaining the operating infrastructure and resource base  that are required to maintain production at the current levels; and |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| iii. | All-in Cost per ounce, which shows the All-in Sustaining Cost per ounce plus the additional costs associated with activities that are undertaken with a view to increasing production. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Reconciliation of IFRS Production Costs to Non-IFRS cost per Ounce($'000's unless otherwise indicated) |   |
|--------------------------------------------------------------------------------------------------------|--------|
|                                                                                                   |   |   |   |   |   |   |
|                                                                                                   |   | 2013 |   |   | 2014 |   |   | 2015 |   |
| Production costs (IFRS)                                                                                |   |   | 26,614 |   |   |   | 27,908 |   |   |   | 30,019 |   |
| Less site restoration costs                                                                            |   |   | (147 | ) |   |   | (29 | ) |   |   | - |   |
| Less exploration costs                                                                                 |   |   | (280 | ) |   |   | (343 | ) |   |   | (380 | ) |
| Less safety costs                                                                                      |   |   | (578 | ) |   |   | (473 | ) |   |   | (551 | ) |
| Other                                                                                                  |   |   | 1,432 |   |   |   | 433 |   |   |   | 1,011 |   |
| On-mine production costs                                                                               |   |   | 27,619 |   |   |   | 27,969 |   |   |   | 30,099 |   |
| Gold Sales (oz)                                                                                        |   |   | 45,048 |   |   |   | 42,927 |   |   |   | 42,943 |   |
| On-mine cash cost (US$/oz)                                                                             |   |   | 613 |   |   |   | 652 |   |   |   | 701 |   |
| Royalties                                                                                              |   |   | 4,412 |   |   |   | 3,521 |   |   |   | 2,455 |   |
| Permitting costs                                                                                       |   |   | 135 |   |   |   | 110 |   |   |   | 102 |   |
| Administrative expenses                                                                                |   |   | 7,546 |   |   |   | 7,387 |   |   |   | 7,622 |   |
| Less Zambian costs                                                                                     |   |   | - |   |   |   | - |   |   |   | (716 | ) |
| Community costs                                                                                        |   |   | (2,000 | ) |   |   |   |   |   |   |   |   |
| Reclamation and remediation of operating sites                                                         |   |   | 107 |   |   |   | 75 |   |   |   | 108 |   |
| Exploration and study costs                                                                            |   |   | 85 |   |   |   | 120 |   |   |   | 189 |   |
| Sustaining capital investment                                                                          |   |   | 5,653 |   |   |   | 2,348 |   |   |   | 4,707 |   |
| Other                                                                                                  |   |   | 287 |   |   |   | 54 |   |   |   | 718 |   |
| All-in Sustaining cost                                                                                 |   |   | 43,844 |   |   |   | 41,584 |   |   |   | 44,564 |   |
| Gold sales (oz)                                                                                        |   |   | 45,048 |   |   |   | 42,927 |   |   |   | 42,943 |   |
| All-in sustaining cost per ounce (US$/oz)                                                              |   |   | 973 |   |   |   | 969 |   |   |   | 1,038 |   |
| Costs not related to current production                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Community costs                                                                                        |   |   | 2,100 |   |   |   | - |   |   |   | - |   |
| Permitting                                                                                             |   |   | 106 |   |   |   | 55 |   |   |   | 43 |   |
| Exploration                                                                                            |   |   | 120 |   |   |   | 106 |   |   |   | 95 |   |
| Capital investment                                                                                     |   |   | 3,530 |   |   |   | 3,833 |   |   |   | 13,486 |   |
| All-in Costs                                                                                           |   |   | 49,701 |   |   |   | 45,578 |   |   |   | 58,188 |   |
| Gold Sold (oz)                                                                                         |   |   | 45,048 |   |   |   | 42,927 |   |   |   | 42,943 |   |
| All-in Costs per ounce (US$/oz)                                                                        |   |   | 1,103 |   |   |   | 1,062 |   |   |   | 1,355 |   |

----

|  Approximate production from proven and probable mineral reserves above 750m (per LOM Plan)  |
|--------------------------------------------------------------------------------------------------------|
|                                                                                                   |  2015  |  2016  |  2017  |  2018  |  2019  |  2020  |  2021  |
|  Tonnes milled ('000)                                                                        |  430  |  460  |  430  |  380  |  230  |  100  |  50  |
|  Gold production (koz)                                                                       |  42  |  45  |  43  |  39  |  23  |  10  |  6  |

|  Possible production from inferred mineral resources below 750m (as per PEA)  |
|-----------------------------------------------------------------------------------------|
|                                                                                    |  2015  |  2016  |  2017  |  2018  |  2019  |  2020  |  2021  |
|  Tonnes milled ('000)                                                         |  0  |  35  |  160  |  215  |  390  |  550  |  600  |
|  Gold production (koz)                                                        |  0  |  4-5  |  20-22  |  27-30  |  46-50  |  63-67  |  70-75  |

----

|  Resource Category                  |  Tonnage  |  Width  |  Au    |  Au Content  |  Ounces  |
|-----------------------------------------------|---------------------|-------------------|------------------|------------------------|--------------------|
|                                          |  T        |  m      |  g/t   |  kg          |  oz.     |
|  Measured & Indicated Resource  |  182,301  |  3.90   |  4.41  |  805         |  25,872  |
|  Inferred Resource                  |  110,242  |  2.73   |  2.87  |  316         |  10,173  |

----

|  Resource Category                             |  Tonnage  |  Width  |  Au    |  Au Content  |  Ounces  |
|----------------------------------------------------------|---------------------|-------------------|------------------|------------------------|--------------------|
|                                                     |  t        |  m      |  g/t   |  kg          |  oz.     |
|  Measured & Indicated Resource (North P.)  |  135,538  |  2.48   |  3.74  |  507         |  16,288  |
|  Inferred Resource (Mascot Main)               |  69,587   |  2.53   |  8.23  |  573         |  18,416  |

| C. | Organizational Structure |
|----|--------------------------|

| Subsidiaries of the Company                                                       | Country of Incorporation | Percentage held by Company |
|-----------------------------------------------------------------------------------|--------------------------|----------------------------|
| Caledonia Mining South Africa Proprietary Limited                                 | South Africa             | 100                        |
| Greenstone Management Services Limited                                            | United Kingdom           | 100                        |
| Blanket Mine (1983) (Private) Limited(1)                                          | Zimbabwe                 | 49                         |
| (1) Blanket Mine (1983) (Private) Limited does not have any subsidiary companies. |

| D. | Property, Plant and Equipment |
|----|-------------------------------|

----

| A. | Operational Results |
|----|---------------------|

|                                                    |  Year 2014  |  Year 2015  |  Comment                                                                                                                          |
|---------------------------------------------------------|-----------------------|-----------------------|---------------------------------------------------------------------------------------------------------------------------------------------|
|  Gold produced (oz)                           |  41,771     |  42,804     |  Gold production increased 2015 due to higher tonnes milled, offset by a lower grade.                                             |
|  On-mine cost (US$/oz)(1)                     |  652        |  701        |  On-mine costs increased in 2015 due to the lower average grade which outweighed the overall reduction in cost per tonne milled.  |
|  All-in Sustaining Cost (US$/oz)(1) ("AISC")  |  969        |  1,038      |  All-in sustaining costs increased in 2015 due to the increased sustaining capital investment in the revised investment plan.     |

|                                        |  Year 2013  |  Year 2014  |  Comment                                                                                                                                                                                                  |
|---------------------------------------------|-----------------------|-----------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  Gold produced (oz)               |  45,530     |  41,771     |  Gold production in 2014 was adversely affected by the lower head grade.                                                                                                                                  |
|  On-mine cost (US$/oz)(1)         |  613        |  652        |  On-mine costs for 2014 were higher than 2013 due to lower sales which means that on-mine fixed costs are spread over fewer ounces.                                                                       |
| All-in Sustaining Cost (US$/oz)(1) ("AISC") |  973        |  969        |  AISC decreased due to lower royalties, lower refining charges, lower community costs and lower sustaining capital investment the combined effects of which were reduced by higher administrative costs.  |

----

|                                       |  Year 2012  |  Year 2013  |  Comment                                                                                                                                                                                                                                                                                                                                                                                                             |
|--------------------------------------------|-----------------------|-----------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  Gold produced (oz)              |  45,465     |  45,530     |  Gold production in 2013 was similar to 2012 despite lower head grades and recovery which were offset by higher tonnage throughput.   The head grade in 2013 was 3.88 grams per tonne, compared to 4.16 grams per tonne in 2012 and the gold recovery in 2013 was 93.3 per cent compared to 93.7 per cent in 2012.  Tonnage throughput in 2013 was 392,320 tonnes compared to 363,315 tonnes in 2012  |
|  On Mine cash cost (US$/oz) (1)  |  570        |  613        |  On-mine costs in 2013 were adversely affected by higher labour and electricity costs in 2013 compared to 2012 and also by the higher level of work-in-progress at December 31, 2013.                                                                                                                                                                                                                                |
| All-in sustaining cost (US$/oz)(1)("AISC") |  759        |  973        |  All-in sustaining costs were adversely affected in Q4 2013 by higher administrative expenses and sustaining capital investment                                                                                                                                                                                                                                                                                      |

|                                                            |  Year 2014         |  Year 2015        |  Comment                                                                                                                                                                                                                       |
|-----------------------------------------------------------------|------------------------------|-----------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  Gold Sales (oz)                                      |  42,927            |  42,943           |  Sales in 2015 were little changed from 2014 and reflect a 2.5% increase in production which was offset by increased work in progress.                                                                                         |
|  Average realised gold price (US$/oz) (1)             |  1,245             |  1,140            |  Lower realised gold prices in 2015 primarily due to the lower quoted gold price.                                                                                                                                              |
|  Gross profit ($'m)                                   |  18,5              |  13,1             |  Gross profit was lower in 2015 due to the lower realised gold price, the effect of which was offset in Q4 of 2015 by higher production and sales, and increased production costs.                                             |
|  Net profit attributable to  shareholders ($'m)  |  4,4               |  4,7              |  The effect of lower revenues was outweighed by a foreign exchange gain arising from the devaluation of the South Africa rand against the US dollar and lower taxation.                                                        |
|  Adjusted basic earnings per share (cents)(1)    | 10.4                         | 8.1                         | Adjusted basic earnings per share excludes impairment charges, foreign exchange profits or losses, indigenisation expenses, deferred taxation and tax adjustments in respect of prior years and the costs of the Zambian operation. |
|  Cash and cash equivalents ($'m)                      |  23,1              |  10,9             |  Caledonia's cash is held in Canadian, UK, Zimbabwean and South African banks.                                                                                                                                                 |
|  Net cash from operating activities ($'m)             |   10,9   |   6,8   |  Cash flow in 2015 was lower due to the lower realised gold price.                                                                                                                                                             |

----

|                                                                   |  Year 2013  |  Year 2014         |  Comment                                                                                                                                                                                                                       |
|------------------------------------------------------------------------|-----------------------|------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  Gold Sales (oz)                                             |  45,048     |  42,927            |  Sales in 2014 were lower than 2013 due to lower production gold ounces.                                                                                                                                                       |
|  Average realised gold price (US$/oz) (1)                    |  1,402      |  1,245             |  Lower realised gold prices in 2014 primarily due to the lower quoted gold price.                                                                                                                                              |
|  Gross profit ($'m)                                          |  29,0       |  18,5              |  Lower gross profit in 2014 compared to 2013 mainly due to the lower realised gold prices and lower production and sales.                                                                                                      |
|  Net (loss)/profit attributable to  shareholders ($'m)  |  (3,0)      |  4,4               |  Net loss in 2013 was after an impairment charge in respect of the Nama project in Zambia. Profit for 2014 was adversely affected by lower gold production and the lower realised gold price.                                  |
|  Adjusted basic earnings per share (cents) (1)          |  27.4       | 10.4                         | Adjusted basic earnings per share excludes impairment charges, foreign exchange profits or losses, indigenisation expenses, deferred taxation and tax adjustments in respect of prior years and the costs of the Zambian operation. |
|  Cash and cash equivalents ($'m)                             |  21.9       |  23,1              |  Caledonia's cash is held in Canadian, UK, Zimbabwean and South African banks.                                                                                                                                                 |
|  Net cash from operating activities ($'m)                    |  12,6       |   10,9   |  Cash flow 2014 was lower due to the lower realised gold price and, for the year, the lower number of ounces sold.                                                                                                             |

----

|                                                                   |  Year 2012  |  Year 2013   |  Comment                                                                                                                                                                  |
|------------------------------------------------------------------------|-----------------------|------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  Gold Sales (oz)                                             |  45,181     |  45,048      |  Lower sales in 2013, despite higher production, due to the higher level of work in progress at December 31, 2013 of 1,978 oz.                                            |
|  Average realised gold price (US$/oz) (1)                    |  1,666      |  1,402       |  Lower realised gold prices in 2013 were due to the lower quoted gold price.                                                                                              |
|  Gross profit ($'m)                                          |  40,9       |  29,0        |  Lower gross profit mainly due to the lower realised gold prices.                                                                                                         |
|  Net (loss)/profit attributable to  shareholders ($'m)  |  8,7        |  (3,0)       |  Net loss in 2013 is after an impairment charge mainly in respect of the Nama Project.                                                                                    |
|  Adjusted basic earnings per share (cents) (1)               |  49.9       |  27.4        |  Adjusted basic earnings per share exclude the impairment charge, foreign exchange profits or losses, indigenisation expenses and deferred taxation.                 |
|  Cash and cash equivalents ($'m)                             |  28,1       |  21,9        |  Caledonia's cash is held in Canadian, UK, Zimbabwean and South African banks.                                                                                            |
|  Net cash from operating activities ($'m)                    |  29,7       |   12,6  |  Cash flow 2013 was lower due to the lower realised gold price and, for the year, the lower number of ounces sold the effect of which was reduced by lower tax payments.  |

----

| Reconciliation of Average Realised Gold Price to IFRS($'000's)  |
|----------------------------------------------------------------------|
|                                                                 |   |   |
|                                                                 |   | 2013 | 2014 | 2015 |
| Revenue  (IFRS)                                                 |   | 63,217 | 53,513 | 48,977 |
| Revenues from sales of silver                                        |   | (78) | (61) | (48) |
| Revenues from sales of gold                                          |   | 63,139 | 53,452 | 48,929 |
| Gold ounces sold (oz)                                                |   | 45,048 | 42,927 | 42,943 |
| Average realised gold price per ounce (US$/oz)                       |   | 1,402 | 1,245 | 1,139 |

| Reconciliation of Adjusted Earnings per Share to IFRS Profit/(Loss) Attributable to Owners of the Company($'000's unless otherwise indicated)                                     |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                   |   |   |
|                                                                                                                                                                                   |   | 2013 | 2014 | 2015 |
| Profit /(loss) attributable to owners of the Company (IFRS)                                                                                                                            |   | (2,967) | 4,435 | 4,779 |
| Blanket Mine Employee Trust adjustment (refer note 18 to the Audited Consolidated Financial Statements) Add back/(deduct) amounts attributable to owners of the company in respect of: |   | 158 | (48) | (100) |
| Foreign exchange gain                                                                                                                                                                  |   | (2,865) | (1,065) | (2,850) |
| Indigenisation expenses                                                                                                                                                                |   | 2,586 | - | - |
| Asset impairment                                                                                                                                                                       |   | 13,789 | 178 | - |
| Deferred tax                                                                                                                                                                           |   | 2,121 | 706 | 2,567 |
| Reversal of withholding tax on dividend in specie                                                                                                                                      |   | 1,486 | - | - |
| Reversal of Zambian G&A office cost                                                                                                                                                |   | - | 896 | 716 |
| Over-accrual for prior year GMS UK tax                                                                                                                                                 |   | - | - | (871) |
| Prior year adjustment in respect of South African tax                                                                                                                                  |   | - | 306 | (765) |
| South African tax penalties and interest                                                                                                                                               |   | - | - | 744 |
| Adjusted profit                                                                                                                                                                        |   | 14,308 | 5,405 | 4,220 |
| Weighted average shares in issue (m)                                                                                                                                                   |   | 52,117 | 52,117 | 52,095 |
| Adjusted EPS (cents)                                                                                                                                                                   |   | 27.4 | 10.4 | 8.1 |

----

|                                                             |   | 2015    | 2014   | 2013    |
|------------------------------------------------------------------|--------|---------|--------|---------|
|                                                             |   |    |   |    |
| Bank balances                                                    |   | 12,568  | 23,082 | 23,580  |
| Cash and cash equivalents in the statement of financial position |   | 12,568  | 23,082 | 23,580  |
| Bank overdraft used for cash management purposes                 |   | (1,688) | -      | (1,679) |
| Cash and cash equivalents in the statement of cash flows         |   | 10,880  | 23,082 | 21.901  |

| B. | Liquidity and Capital Resources |
|----|---------------------------------|

----

| C. | Research and development, patents and licences |
|----|------------------------------------------------|

| D. | Trend Information |
|----|-------------------|

| E. | Off-Balance Sheet Arrangements |
|----|--------------------------------|

| F. | Tabular Disclosure of Contractual Obligations |
|----|-----------------------------------------------|

|                                                                                     | Payments due by Period – in thousands of US Dollars |
|------------------------------------------------------------------------------------------|-----------------------------------------------------------|
|                                                                                     | Within 1Year                                              | 1-3 years | 3-5 years | More than5 years | Total |
| Trade and other payables                                                                 | 6,656                                                     | - | - | - | 6,656 |
| Asset retirement obligations                                                             | -                                                         | - | - | 2,762 | 2,762 |
| Capital expenditure commitments (refer note 12 of the Consolidated Financial Statements) | 1,376                                                     | - | - | - | 1,376 |

----

| A. | Directors and Senior Management |
|----|---------------------------------|

| Name, Office Held and Municipality of Residence                                                                  | Principal Occupations During Past Five Years                                                                                                                                                                 |   | Positions held Since                                              | Number of Shares Beneficially Owned, Controlled or Directed as of March 30, 2016  |
|------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------|----------------------------------------------------------------------------------------|
| James Johnstone (2)(4)(6)(7)DirectorGibsons, British Columbia, Canada                                  | Retired.  Formerly Chief Operating Officer of the Company and Director of several of its subsidiary companies.                                                                                     |   | 1997                                                         | 28,000                                                                            |
| Steven Curtis (5)(7)President, Chief Executive Officer  & DirectorJohannesburg, South Africa  | Financial Director Avery Dennison SA (Pty) Ltd. until March 2006.  Since then, VP Finance, Chief Financial Officer and Director of the Company and Director of certain of its subsidiary companies.     |   | Director since 2008President and Chief Executive since 2014  | 365,000                                                                           |
| Leigh Wilson(1)(2)(3)(4)(7) DirectorStuart, Florida, USA                                                    | Chairman of the Victory PortfoliosWinston Maritime LLCFundVantage TrustStella and Hack Wilson Family Foundation                                                                                         |   | 2012                                                         | 72,500                                                                            |
| John Kelly(1)(2)(3)(7) DirectorNew Canaan, Connecticut                                                      | Partner at Endgate Commodities LLC, Member of CrossRoad LLC, Director of Liquidnet Europe Ltd, Officer of Liquidnet Holdings, Inc.                                                                      |   | 2012                                                         | 57,465                                                                            |
| Johan Holtzhausen(1)(2)(4)(5)(6)(7)Director,Cape Town, South Africa                                         | Business consultant and ex Audit partner of KPMG Inc. Director of DRDGOLD Limited and First Food Brands Limited. Strategic Partners In Tourism NPC and Tourism Micro Enterprises Support Fund NPC  |   | 2013                                                         | Nil                                                                               |

| Name, Office Held and Municipality of Residence                                                         | Principal Occupations During Past Five Years                                                                                                                                                 |   | Positions held Since                                                     | Number of Shares Beneficially Owned, Controlled or Directed as of March 30, 2016  |
|---------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------|----------------------------------------------------------------------------------------|
| Dana Roets(6)(7)Chief Operating OfficerJohannesburg, South Africa                                  | VP and Head of Operations at Kloof Gold Mine. More recently, Dana was the COO at Great Basin Gold which had gold mining operations in the United States of America and South Africa.    |   | 2013                                                                | Nil                                                                               |
| Mark Learmonth(5)(7)VP Finance, Chief Financial Officer & Director Johannesburg, South Africa  | Vice-President of the Company focused on financial reporting, investor and shareholder relations and corporate development. Former Vice-President Business Development, of the Company  |   | Director since 2015Vice-President, Business Development since 2008  | 224,230                                                                           |
| Trevor Pearton(5)(6)(7)Vice-President Exploration Johannesburg, South Africa                       | Vice-President of the Company acting as Exploration Manager of the Company and its subsidiaries                                                                                         |   | 2004                                                                | Nil                                                                               |
| David Henderson (6)DirectorOakville, Ontario, Canada                                                    | A principal of Dyad Corporation providing project management services to various mining clients                                                                                         |   | 2015                                                                | 17,200                                                                            |

----

----

----

| B. | Compensation |
|----|--------------|

| Name and principal position                                    | Year                     | Salary ($)                  | Share based awards ($) | Option-based awards | Non‐equity incentive plan compensation($) | Pension value($)                     | All othercompensation | Total compensation $         |
|----------------------------------------------------------------|--------------------------|-----------------------------|------------------------|---------------------|-------------------------------------------------|--------------------------------------|-----------------------|------------------------------|
| (a)                                                            | (b)                      | (c)                         | (d)                    | (e)                 | (f)                                             | (g)                                  | (h)                   | (i)                          |
|                                                           |                     |                        |                   |                | Annual incentive plans (f1)                     | Long‐term incentive plans (f2) |                  |                         |   |
| Steve CurtisChiefExecutive Officer                             | 201520142013   | 428,637410,085319,117  | ---               | ---            | -60,01251,990                              | ---                             | ---              | (1)180,25540,75833,980  | 608,892510,855405,087  |
| Dana RoetsChief Operating Officer                              | 201520142013        | 418,182400,083115,859  | ---                    | ---                 | -60,01210,004                              | ---                                  | ---                   | (1)138,000--                 | 556,182460,095125,863 |
| Mark LearmonthChief Financial Officer                          | 201520142013        | 360,000275,057174,687  | ---               | ---            | -60,01224,955                              | ---                             | ---              | (1)154,000--            | 514,000335,069199,642  |
| Caxton MangeziGeneral Manager and Director of the Blanket Mine | 201520142013        | 348,400335,069295,457  | ---               | ---            | -27,92243,400                              | ---                             | ---              | (1)190,00210,00210,833  | 538,402372,993349,690  |
| Trevor PeartonVP Exploration                                   | 201520142013        | 224,773215,045156,994       | ---                    | ---                 | -17,92113,475                                   | ---                                  | ---                   | (1)18,656--                  | 243,429232,966170,469 |

| (1) | Bonuses paid to Directors and key management (Refer note 27 of the Consolidated Financial Statements) |
|-----|-------------------------------------------------------------------------------------------------------|

| C. | Board Practices |
|----|-----------------|

----

| Audit         | Compensation             | Governance    | Nominating    | Disclosure    |
|---------------|--------------------------|---------------|---------------|---------------|
| J Holtzhausen | L Wilson                 | L Wilson      | L Wilson      | M Learmonth   |
| L Wilson      | J Kelly                  | J Kelly       | J Holtzhausen | S R Curtis    |
| J Kelly       | J Holtzhausen            |          | J Johnstone   | J Holtzhausen |
|          | J Johnstone              |          |          | T Pearton     |
|          |                     |          |          |          |
|          |                     |          |          |          |
| Technical     | Strategic                | Life of Mine  |          |          |
| J Johnstone   | L Wilson                 | L Wilson      |          |          |
| J Holtzhausen | J Kelly                  | J Johnstone   |          |          |
| D Roets       | S R Curtis               | J Holtzhausen |          |          |
| T Pearton     | M Learmonth              |          |          |          |
| D Henderson   | D Roets                  |          |          |          |
|          | T Pearton                |          |          |          |
|          | J HoltzhausenJ Johnstone |          |          |          |
|          |                     |          |          |          |

| D. | Employees |
|----|-----------|

| Employee Location                                           | 2011   | 2012   | 2013   | 2014   | 2015   |
|-------------------------------------------------------------|--------|--------|--------|--------|--------|
| Total Employees                                             |   |   |   |   |   |
| South Africa (African Office)                               | 10     | 10     | 13     | 14     | 14     |
| Zimbabwe – approx.(i)                                 | 856    | 860    | 1,028  | 1,007  | 1,157  |
| South Africa (Mine Security and Operations and Exploration) | 1      | 1      | 1      | 1      | 1      |
| Zambia (Head Office and Security)                           | 8      | 8      | 8      | 6      | -      |
| Total Employees at all Locations                            | 875    | 879    | 1,050  | 1,028  | 1,172  |
|                                                        |   |   |   |   |   |

----

| Management and Administration:            |   |   |   |   |   |
|-------------------------------------------|--------|--------|--------|--------|--------|
| Employee Locations:                       | 2011   | 2012   | 2013   | 2014   | 2015   |
| Zimbabwe                                  | 30     | 32     | 32     | 36     | 37     |
| South Africa (African Office)             | 7      | 7      | 12     | 12     | 12     |
| South Africa (Exploration and Operations) | 2      | 2      | 1      | 1      | 1      |
| Zambia (Head Office and Security)         | 4      | 4      | 4      | 4      | -      |
| Total Management and Administration       | 43     | 45     | 49     | 53     | 50     |

| E. | Share Ownership |
|----|-----------------|

|          | Number of shares | Percentage share holding |
|---------------|------------------|--------------------------|
| L Wilson      | 72,500           | 0.14%                    |
| J Johnstone   | 28,000           | 0.05%                    |
| S Curtis      | 365,000          | 0.70%                    |
| M Learmonth   | 224,230          | 0.43%                    |
| J. Kelly      | 57,465           | 0.11%                    |
| D Roets       | Nil              | -                        |
| J Holtzhausen | Nil              | -                        |
| T. Pearton    | Nil              | -                        |
| D. Henderson  | 17,200           | 0.03%                    |
| Total         | 764,895          | 1.46%                    |

| (b) | Share purchase options outstanding as of March 30, 2016: |
|-----|----------------------------------------------------------|

| Name        | Exercise Price Cdn |   | Expiry Date        |   | Number of Options |
|-------------|--------------------|--------|--------------------|--------|-------------------|
| J Johnstone | 0.90               |   | September 10, 2017 |   | 40,000            |
| J Johnstone | 1.30               |   | January 31, 2016   |   | 160,000           |
| L Wilson    | 0.90               |   | September 10, 2017 |   | 90,000            |
| C Jonsson   | 0.90               |   | September 10, 2017 |   | 40,000            |
| C Jonsson   | 1.30               |   | January 31, 2016   |   | 160,000           |
| J Liswaniso | 0.90               |   | September 10, 2017 |   | 7,500             |
| J Liswaniso | 1.30               |   | January 31, 2016   |   | 10,000            |
| M Learmonth | 0.90               |   | September 10, 2017 |   | 89,020            |
| M Learmonth | 1.30               |   | January 31, 2016   |   | 150,000           |
| A Lawson    | 0.90               |   | September 10, 2017 |   | 3,000             |
| A Lawson    | 1.30               |   | January 31, 2016   |   | 7,500             |
| T Pearton   | 0.90               |   | September 10, 2017 |   | 25,000            |
| T Pearton   | 1.30               |   | January 31, 2016   |   | 25,000            |
| SR Curtis   | 0.90               |   | September 10, 2017 |   | 55,000            |

----

| SR Curtis              | 1.30   |   | January 31, 2016   |   | 250,000   |
|------------------------|--------|--------|--------------------|--------|-----------|
| R Babensee             | 0.90   |   | September 10, 2017 |   | 40,000    |
| R Babensee             | 1.30   |   | January 31, 2016   |   | 175,000   |
| C Mangezi              | 0.90   |   | September 10, 2017 |   | 100,000   |
| C Mangezi              | 1.30   |   | January 31, 2016   |   | 200,000   |
| P Dell                 | 0.90   |   | September 10, 2017 |   | 3,000     |
| P Dell                 | 1.30   |   | January 31, 2016   |   | 7,500     |
| P Human                | 0.90   |   | September 10, 2017 |   | 5,000     |
| P Human                | 1.30   |   | January 31, 2016   |   | 10,000    |
| S Smith                | 0.90   |   | September 10, 2017 |   | 2,400     |
| S Smith                | 1.30   |   | January 31, 2016   |   | 6,000     |
| J Kelly                | 0.90   |   | September 10, 2017 |   | 90,000    |
| R Patricio             | 0.90   |   | September 10, 2017 |   | 90,000    |
| D Roets                | 0.72   |   | November 21, 2018  |   | 100,000   |
| J Holtzhausen          | 0.72   |   | November 21, 2018  |   | 90,000    |
| D Henderson            | 0.74   |   | December 21, 2020  |   | 90,000    |
| DSA Corporate Services | 0.80   |   | October 7, 2020    |   | 25,000    |
| TOTAL                  |   |   |               |   | 2,145,920 |

----

| A. | Major Shareholders |
|----|--------------------|

| Geographic Area | Number of Shares Held | Percentage of Issued Shares |
|-----------------|-----------------------|-----------------------------|
| USA             | 21,309,828            | 40.92%                      |
| Canada          | 17,639,280            | 33.87%                      |
| United Kingdom  | 13,098,711            | 25.15%                      |
| Other           | 31,089                | 0.06%                       |
|            | 52,078,908            | 100%                        |

| B. | Related Party Transactions |
|----|----------------------------|

|                                | 2015     | 2014  | 2013  |
|-------------------------------------|----------|-------|-------|
| Key management salaries and bonuses | (1)2,452 | 1,781 | 1,482 |
| Share-based payments                | 24       | -     | 35    |
|                                | 2,476    | 1,781 | 1,517 |

----

|                                                                                                                                                              |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                   |   | Transactions during the year  |
|                                                                                                                                                                        | Note   | 2015 | 2014 | 2013 |
| Management contract fees, allowances and bonus paid or accrued to a company for management services provided by the Company's former President and Chief Executive Officer. | (i)    | - | 850 | 715 |
| Rent for office premises paid to a company owned by members of the former Chief Executive Officer's family.                                                                 | (ii)   | 40 | 129 | 37 |
| Legal fees and disbursements                                                                                                                                                |   | - | - | 85 |
| Directors fees                                                                                                                                                              |   | 191 | 298 | 280 |

| · | the acquisition of more than 50% of the common shares; or |
|--------|-----------------------------------------------------------|

| · | the acquisition of right to exercise the majority of the voting rights of common shares; or |
|--------|---------------------------------------------------------------------------------------------|

| · | the acquisition of the right to appoint the majority of the board of directors; or |
|--------|------------------------------------------------------------------------------------|

| · | the acquisition of more than 50% of the assets; of |
|--------|----------------------------------------------------|

| C. | Interests of Experts and Counsel |
|----|----------------------------------|

| A. | Consolidated Statements and Other Financial Information |
|----|---------------------------------------------------------|

----

| B. | Significant Changes |
|----|---------------------|

| A. | Offering and Listing Details |
|----|------------------------------|

|                        | TSX Exchange (Canadian Dollars) |
|-----------------------------|---------------------------------|
| Last Six Months             | High                            | Low |
| March 2016 (up to 17 March) | 0.91                            | 0.86 |
| February 2016               | 0.94                            | 0.84 |
| January 2016                | 0.85                            | 0.79 |
| December 2015               | 0.81                            | 0.66 |
| November 2015               | 0.82                            | 0.74 |
| October 2015                | 0.84                            | 0.72 |
| September 2015              | 0.77                            | 0.70 |

----

| 2015                                   | High   | Low    |
|----------------------------------------|--------|--------|
| Fourth Quarter ended December 31, 2015 | 0.84   | 0.67   |
| Third Quarter ended September 31, 2015 | 0.96   | 0.70   |
| Second Quarter ended June 30, 2015     | 0.95   | 0.66   |
| First Quarter ended March 31, 2015     | 0.75   | 0.62   |
|                                   |   |   |
| 2014                                   | High   | Low    |
| Fourth Quarter ended December 31, 2014 | 0.81   | 0.77   |
| Third Quarter ended September 31, 2014 | 1.10   | 1.07   |
| Second Quarter ended June 30, 2014     | 0.87   | 0.85   |
| First Quarter ended March 31, 2014     | 0.80   | 0.77   |
|                                   |   |   |
| 2013                                   | High   | Low    |
| Fourth Quarter ended December 31, 2013 | 0.82   | 0.67   |
| Third Quarter ended September 31, 2013 | 0.98   | 0.74   |
| Second Quarter ended June 30, 2013     | 1.20   | 1.15   |
| First Quarter ended March 31, 2013     | 1.40   | 0.95   |
|                                   |   |   |
| Last Five Fiscal Years                 | High   | Low    |
| 2015                                   | 0.96   | 0.62   |
| 2014                                   | 0.90   | 0.86   |
| 2013                                   | 1.40   | 0.67   |
| 2012                                   | 1.25   | 0.60   |
| 2011                                   | 1.45   | 0.65   |

|                                   | OTCQX (United States Dollar) |
|----------------------------------------|------------------------------|
| Last Six Months                        | High                         | Low |
| March 2016 (up to 29 March)            | 0.72                         | 0.65 |
| February 2016                          | 0.69                         | 0.60 |
| January 2016                           | 0.61                         | 0.54 |
| December 2015                          | 0.60                         | 0.49 |
| November 2015                          | 0.62                         | 0.56 |
| October 2015                           | 0.66                         | 0.56 |
| September 2015                         | 0.59                         | 0.53 |
|                                   |                         |   |
| 2015                                   | High                         | Low |
| Fourth Quarter ended December 31, 2015 | 0.66                         | 0.49 |
| Third Quarter ended September 31, 2015 | 0.76                         | 0.53 |
| Second Quarter ended June 30, 2015     | 0.79                         | 0.52 |
| First Quarter ended March 31, 2015     | 0.63                         | 0.51 |
|                                   |                         |   |
| 2014                                   | High                         | Low |
| Fourth Quarter ended December 31, 2014 | 0.71                         | 0.56 |
| Third Quarter ended September 31, 2014 | 1.01                         | 0.98 |
| Second Quarter ended June 30, 2014     | 0.80                         | 0.78 |
| First Quarter ended March 31, 2014     | 0.73                         | 0.70 |
|                                   |                         |   |
| 2013                                   | High                         | Low |
| Fourth Quarter ended December 31, 2013 | 0.85                         | 0.65 |
| Third Quarter ended September 31, 2013 | 0.94                         | 0.68 |

----

| Second Quarter ended June 30, 2013 | 1.21   | 1.20   |
|------------------------------------|--------|--------|
| First Quarter ended March 31, 2013 | 1.35   | 0.95   |
|                               |   |   |
| Last Five Fiscal Years             | High   | Low    |
| 2015                               | 0.79   | 0.49   |
| 2014                               | 0.81   | 0.78   |
| 2013                               | 1.45   | 0.65   |
| 2012                               | 1.25   | 0.65   |
| 2011                               | 1.58   | 0.63   |

|                                   | AIM (Pound Sterling) |
|----------------------------------------|----------------------|
| Last Six Months                        | High                 | Low |
| March 2016 (up to 29 March)            | 0.49                 | 0.47 |
| February 2016                          | 0.47                 | 0.41 |
| January 2016                           | 0.52                 | 0.37 |
| December 2015                          | 0.42                 | 0.37 |
| November 2015                          | 0.41                 | 0.40 |
| October 2015                           | 0.44                 | 0.37 |
| September 2015                         | 0.38                 | 0.37 |
|                                   |                 |   |
| 2015                                   | High                 | Low |
| Fourth Quarter ended December 31, 2015 | 0.44                 | 0.37 |
| Third Quarter ended September 31, 2015 | 0.49                 | 0.36 |
| Second Quarter ended June 30, 2015     | 0.48                 | 0.34 |
| First Quarter ended March 31, 2015     | 0.38                 | 0.33 |
|                                   |                 |   |
| 2014                                   | High                 | Low |
| Fourth Quarter ended December 31, 2014 | 0.49                 | 0.30 |
| Third Quarter ended September 31, 2014 | 0.50                 | 0.42 |
| Second Quarter ended June 30, 2014     | 0.42                 | 0.35 |
| First Quarter ended March 31, 2014     | 0.38                 | 0.27 |
|                                   |                 |   |
| 2013                                   | High                 | Low |
| Fourth Quarter ended December 31, 2013 | 0.38                 | 0.34 |
| Third Quarter ended September 31, 2013 | 0.47                 | 0.38 |
| Second Quarter ended June 30, 2013     | 0.70                 | 0.47 |
| First Quarter ended March 31, 2013     | 0.66                 | 0.45 |
|                                   |                 |   |
| Last Five Fiscal Years                 | High                 | Low |
| 2015                                   | 0.49                 | 0.33 |
| 2014                                   | 0.50                 | 0.27 |
| 2013                                   | 0.70                 | 0.34 |
| 2012                                   | 0.63                 | 0.33 |
| 2011                                   | 0.69                 | 0.35 |

----

| A. | Share Capital |
|----|---------------|

| B. | Articles of Association |
|----|-------------------------|

----

| C. | Material Contracts |
|----|--------------------|

| D. | Exchange Controls |
|----|-------------------|

| E. | Taxation |
|----|----------|

----

| · | an individual who is a citizen or resident of the U.S.; |
|--------|---------------------------------------------------------|

| · | a corporation (or other entity taxable as a corporation for U.S. federal income tax purposes) organized under the laws of the U.S., any state thereof or the District of Columbia; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | an estate whose income is subject to U.S. federal income taxation regardless of its source; or |
|--------|------------------------------------------------------------------------------------------------|

| · | a trust that (1) is subject to the primary supervision of a court within the U.S. and the control of one or more U.S. persons for all substantial decisions or (2) has a valid election in effect under applicable Treasury Regulations to be treated as a U.S. person. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

| F. | Dividends and Paying Agents |
|----|-----------------------------|

| G. | Statement by Experts |
|----|----------------------|

| H. | Documents on Display |
|----|----------------------|

----

| I. | Subsidiary Information |
|----|------------------------|

| A. | Currency Risk |
|----|---------------|

|                        |   | December 31,2015 |   |   | December 31,2014 |   |   | January 1,2014 |   |
|-----------------------------|--------|------------------|--------|--------|------------------|--------|--------|----------------|--------|
|                        |   |             |   |   |             |   |   |           |   |
| Cash and cash equivalents   |   |             | 132    |   |             |   | 470    |           |   |   | 416 |   |
| Trade and other receivables |   |             | 566    |   |             |   | 83     |           |   |   | 1 |   |
| Trade and other payables    |   |             | 510    |   |             |   | 575    |           |   |   | 648 |   |

----

|                      |   | 2015USD'000         |    |   | 2014USD'000         |   |   | 2013USD'000         |   |
|---------------------------|--------|---------------------|---------|--------|---------------------|--------|--------|---------------------|--------|
|                      |   | Functional currency |    |   | Functional currency |   |   | Functional currency |   |
|                      |   | ZAR                 |    |   | CAD                 |   |   | ZAR                 |   |   | CAD |   |   | ZAR |   |   | CAD |   |
| Cash and cash equivalents |   |                | 3,874   |   |                |   | 5,483  |                |   |   | 10,514 |   |   |   | 553 |   |   |   | 8,197 |   |   |   | 1,594 |   |
| Trade and other payables  |   |                | -       |   |                |   | -      |                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Intercompany balances*    |   |                | (27,650 | )      |                |   | 44,390 |                |   |   | (30,320 | ) |   |   | 48,484 |   |   |   | (31,079 | ) |   |   | 57,207 |   |
|                      |   |                | (23,776 | )      |                |   | 49,873 |                |   |   | (19,806 | ) |   |   | 49,037 |   |   |   | (22,882 | ) |   |   | 58,801 |   |

|                      |   | 2015USD'000         |   |   | 2014USD'000         |   |   | 2013USD'000         |   |
|---------------------------|--------|---------------------|--------|--------|---------------------|--------|--------|---------------------|--------|
|                      |   | Functional currency |   |   | Functional currency |   |   | Functional currency |   |
|                      |   | ZAR                 |   |   | CAD                 |   |   | ZAR                 |   |   | CAD |   |   | ZAR |   |   | CAD |   |
| Cash and cash equivalents |   |                | 194    |   |                |   | 274    |                |   |   | 526 |   |   |   | 28 |   |   |   | 410 |   |   |   | 80 |   |
| Trade and other payables  |   |                | -      |   |                |   | -      |                |   |   |   |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Intercompany balances*    |   |                | (1,382 | )      |                |   | 2,219  |                |   |   | (1,516 | ) |   |   | 2,424 |   |   |   | (1,554 | ) |   |   | 2,860 |   |

| B. | Interest Rate Risk |
|----|--------------------|

| C. | Concentration of Credit Risk |
|----|------------------------------|

| D. | Liquidity Risk |
|----|----------------|

| E. | Commodity Price Risk |
|----|----------------------|

----

----

----

|                       |   | 2015(1) |    |   | 2014(1) |   |    | 2013(1) |   |
|----------------------------|--------|---------|---------|--------|---------|--------|---------|---------|--------|
| Audit fees                 |   |    | 181,652 |   |    |   | 276,824 |    |   |   | 266,990 |   |
| Audit – related fees |   |    | -       |   |    |   | -       |    |   |   | 31,068 |   |
| Tax fees (2)               |   |    | 181950  |   |    |   | 56,414  |    |   |   | 1,456 |   |
| All other fees             |   |    | -       |   |    |   | -       |    |   |   | - |   |
| TOTAL                      |   |    | 363,602 |   |    |   | 333,238 |    |   |   | 299,514 |   |

| (1) | Prior to the start of the audit process, Caledonia's Audit Committee receives an estimate of the costs, from its auditors and reviews such costs for their reasonableness. After their review and pre-approval of the fees, the Audit Committee recommend to the board of directors to accept the estimated audit fees given by the auditors. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Tax fees were for assistance provided regarding international tax matters relating to a possible permanent establishment tax exposure and a tax transfer pricing review. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Description                    |   | Page    |
|--------------------------------|--------|---------|
|                           |   |    |
| Financial Statements and Notes |   | F1- F63 |

| Exhibit No. | Name                                                                                                                                                                                                                |
|-------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1.1         | Articles of Association (incorporated herein by reference to Exhibit 1.1 to the Registrant's Annual Report on Form 20-F filed with the SEC on March 31, 2015)                                                       |
| 4.1         | Stock Option Plan (revised 2015) (incorporated herein by reference to Exhibit 4.1 to the Registrant's Annual Report on Form 20-F filed with the SEC on March 31, 2015)                                              |
| 4.2         | Employment contracts/executive employment agreements                                                                                                                                                                |
| 8.1         | List of  Caledonia Mining Corporation Plc group entities                                                                                                                                                       |
| 12.1        | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                                                                  |
| 12.2        | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                                                                  |
| 13.1        | Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                                      |
| 15.1        | Independent Technical Report and PEA on the Blanket Mine Property in Zimbabwe(incorporated herein by reference to Exhibit 15.1 to the Registrant's Annual Report on Form 20-F filed with the SEC on March 31, 2015) |
| 15.2        | Property and Claims Information Blanket (incorporated herein by reference to Exhibit 15.2 to the Registrant's Annual Report on Form 20-F filed with the SEC on March 31, 2015)                                      |
| 15.3        | Shareholder Rights Plan (incorporated herein by reference to Exhibit 15.3 to the Registrant's Annual Report on Form 20-F filed with the SEC on March 31, 2015)                                                      |
| 15.4        | Share Subscription Agreements – Blanket Mine (incorporated herein by reference to Exhibit 15.4 to the Registrant's Annual Report on Form 20-F filed with the SEC on March 31, 2015)                           |

----

----

|    For the years ended  December 31                      |   | Note   |   | 2015   |    |   | * 2014 |   |    | * 2013 |   |
|------------------------------------------------------------------------------|--------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
|                                                                         |   |   |   |   |    |   |   |   |    |   |   |
| Revenue                                                                      |   |   |   |   | 48,977  |   |   |   | 53,513  |   |   |   | 63,217 |   |
| Less: Royalties                                                              |   |   |   |   | (2,455  | )      |   |   | (3,522  | )      |   |   | (4,412 | ) |
|           Production costs |   | 8      |   |   | (30,019 | )      |   |   | (27,908 | )      |   |   | (26,614 | ) |
|           Depreciation     |   |   |   |   | (3,322  | )      |   |   | (3,540  | )      |   |   | (3,181 | ) |
| Gross profit                                                                 |   |   |   |   | 13,181  |   |   |   | 18,543  |   |   |   | 29,010 |   |
| Other income                                                                 |   |   |   |   | 110     |   |   |   | 25      |   |   |   | - |   |
| Administrative expenses                                                      |   | 9      |   |   | (7,622  | )      |   |   | (7,387  | )      |   |   | (7,546 | ) |
| Share-based payment expense                                                  |   | 20     |   |   | (24     | )      |   |   | -       |   |   |   | (66 | ) |
| Net foreign exchange gain                                                    |   |   |   |   | 2,850   |   |   |   | 1,065   |   |   |   | 1,628 |   |
| Impairment                                                                   |   | 12     |   |   | -       |   |   |   | (178    | )      |   |   | (13,789 | ) |
| Operating profit                                                             |   |   |   |   | 8,495   |   |   |   | 12,068  |   |   |   | 9,237 |   |
| Finance income                                                               |   | 10     |   |   | 1       |   |   |   | 14      |   |   |   | 23 |   |
| Finance cost                                                                 |   | 10     |   |   | (536    | )      |   |   | (154    | )      |   |   | (128 | ) |
| Net finance costs                                                            |   |   |   |   | (535    | )      |   |   | (140    | )      |   |   | (105 | ) |
| Profit before tax                                                            |   |   |   |   | 7,960   |   |   |   | 11,928  |   |   |   | 9,132 |   |
| Tax expense                                                                  |   | 11     |   |   | (2,370  | )      |   |   | (5,982  | )      |   |   | (9,609 | ) |
| Profit for the year                                                          |   |   |   |   | 5,590   |   |   |   | 5,946   |   |   |   | (477 | ) |
| Other comprehensive income                                                   |   |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Items that are or may be reclassified to profit or loss                      |   |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Foreign currency translation differences of foreign operations               |   |   |   |   | (3,291  | )      |   |   | (685    | )      |   |   | (1,567 | ) |
| Tax on other comprehensive income                                            |   | 11     |   |   | 199     |   |   |   | 111     |   |   |   | - |   |
| Total comprehensive income for the year                                      |   |   |   |   | 2,498   |   |   |   | 5,372   |   |   |   | (2,044 | ) |
|                                                                         |   |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Profit attributable to:                                                      |   |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Owners of the Company                                                        |   |   |   |   | 4,779   |   |   |   | 4,435   |   |   |   | (2,967 | ) |
| Non-controlling interests                                                    |   |   |   |   | 811     |   |   |   | 1,511   |   |   |   | 2,490 |   |
| Profit for the year                                                          |   |   |   |   | 5,590   |   |   |   | 5,946   |   |   |   | (477 | ) |
| Total comprehensive income attributable to:                                  |   |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Owners of the Company                                                        |   |   |   |   | 1,687   |   |   |   | 3,861   |   |   |   | (4,534 | ) |
| Non-controlling interests                                                    |   |   |   |   | 811     |   |   |   | 1,511   |   |   |   | 2,490 |   |
| Total comprehensive income for the year                                      |   |   |   |   | 2,498   |   |   |   | 5,372   |   |   |   | (2,044 | ) |
|                                                                         |   |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Earnings per share                                                           |   |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Basic earnings -  per share ($)                                         |   | 18     |   |   | 0.09    |   |   |   | 0.08    |   |   |   | (0.05 | ) |
| Diluted earnings - per share ($)                                             |   | 18     |   |   | 0.09    |   |   |   | 0.08    |   |   |   | (0.05 | ) |
|                                                                         |   |   |   |   |    |   |   |   |    |   |   |   |   |   |
|                                                                         |   |   |   |   |    |   |   |   |    |   |   |   |   |   |

----

| Consolidated statements of financial position(In thousands of United States Dollars, unless indicated otherwise) |   |
|------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                             |   | Note |   | December 31 |   |   | * December 31 |   |   | * January 1 |   |
| As at                                                                                                            |   |   |   | 2015 |   |   | 2014 |   |   | 2014 |   |
| Assets                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |
| Property, plant and equipment                                                                                    |   | 12 |   |   | 49,218 |   |   |   | 34,736 |   |   |   | 31,272 |   |
| Deferred tax asset                                                                                               |   | 11 |   |   | 58 |   |   |   | - |   |   |   | - |   |
| Total non-current assets                                                                                         |   |   |   |   | 49,276 |   |   |   | 34,736 |   |   |   | 31,272 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Inventories                                                                                                      |   | 13 |   |   | 6,091 |   |   |   | 6,512 |   |   |   | 6,419 |   |
| Prepayments                                                                                                      |   |   |   |   | 667 |   |   |   | 299 |   |   |   | 165 |   |
| Trade and other receivables                                                                                      |   | 14 |   |   | 3,839 |   |   |   | 1,755 |   |   |   | 3,636 |   |
| Income tax receivable                                                                                            |   |   |   |   | 397 |   |   |   | 95 |   |   |   | - |   |
| Cash and cash equivalents                                                                                        |   | 15 |   |   | 12,568 |   |   |   | 23,082 |   |   |   | 23,580 |   |
| Total current assets                                                                                             |   |   |   |   | 23,562 |   |   |   | 31,743 |   |   |   | 33,800 |   |
| Total assets                                                                                                     |   |   |   |   | 72,838 |   |   |   | 66,479 |   |   |   | 65,072 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity and liabilities                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Share capital                                                                                                    |   | 16 |   |   | 54,569 |   |   |   | 54,569 |   |   |   | 54,569 |   |
| Reserves                                                                                                         |   | 17 |   |   | 141,942 |   |   |   | 145,209 |   |   |   | 145,894 |   |
| Retained loss                                                                                                    |   |   |   |   | (147,654 | ) |   |   | (150,128 | ) |   |   | (151,824 | ) |
| Equity attributable to shareholders                                                                              |   |   |   |   | 48,857 |   |   |   | 49,650 |   |   |   | 48,639 |   |
| Non-controlling interests                                                                                        |   | 30 |   |   | 1,504 |   |   |   | 693 |   |   |   | (48 | ) |
| Total equity                                                                                                     |   |   |   |   | 50,361 |   |   |   | 50,343 |   |   |   | 48,591 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Provisions                                                                                                       |   | 21 |   |   | 2,762 |   |   |   | 2,484 |   |   |   | 1,470 |   |
| Deferred tax liability                                                                                           |   | 11 |   |   | 11,318 |   |   |   | 8,680 |   |   |   | 7,967 |   |
| Total non-current liabilities                                                                                    |   |   |   |   | 14,080 |   |   |   | 11,164 |   |   |   | 9,437 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Trade and other payables                                                                                         |   | 22 |   |   | 6,656 |   |   |   | 3,260 |   |   |   | 4,301 |   |
| Income tax payable                                                                                               |   |   |   |   | 53 |   |   |   | 1,712 |   |   |   | 1,064 |   |
| Bank overdraft                                                                                                   |   | 15 |   |   | 1,688 |   |   |   | - |   |   |   | 1,679 |   |
| Total current liabilities                                                                                        |   |   |   |   | 8,397 |   |   |   | 4,972 |   |   |   | 7,044 |   |
| Total liabilities                                                                                                |   |   |   |   | 22,477 |   |   |   | 16,136 |   |   |   | 16,481 |   |
| Total equity and liabilities                                                                                     |   |   |   |   | 72,838 |   |   |   | 66,479 |   |   |   | 65,072 |   |

----

|                                    |   | Share capital |     |   | Foreign Currency Translation Reserve |   |   | Contributed Surplus |   |   | Share- based payment reserve |   |   | Retained Loss |   |   | Total  |   |     | Non- controlling interests ("NCI") |   |   | Total Equity |   |
|-----------------------------------------|--------|---------------|----------|--------|--------------------------------------|--------|--------|---------------------|--------|--------|------------------------------|--------|--------|---------------|--------|--------|--------|--------|----------|------------------------------------|--------|--------|--------------|--------|
| Balance at December 31, 2012 *          |   |          | 186,704  |   |                                 |   | (977   | )                   |   |   | -                            |   |   |          | 15,781 |   |   |   | (143,718 | )                                  |   |   | 57,790       |   |   |   | (1,807 | ) |   |   | 55,983 |   |
| Transactions with owners:               |   |          |     |   |                                 |   |   |                |   |   |                         |   |   |          |   |   |   |   |     |                               |   |   |         |   |   |   |   |   |   |   |   |   |
| Reduction in stated capital             |   |          | (132,591 | )      |                                 |   | -      |                |   |   | 132,591                      |   |   |          | -      |   |   |   | -        |                               |   |   | -            |   |   |   | - |   |   |   | - |   |
| Share-based payment transaction         |   |          | -        |   |                                 |   | -      |                |   |   | -                            |   |   |          | 66     |   |   |   | -        |                               |   |   | 66           |   |   |   | - |   |   |   | 66 |   |
| Dividends paid                          |   |          | -        |   |                                 |   | -      |                |   |   | -                            |   |   |          | -      |   |   |   | (5,139   | )                                  |   |   | (5,139       | )      |   |   | (731 | ) |   |   | (5,870 | ) |
| Shares issued                           |   |          | 456      |   |                                 |   | -      |                |   |   | -                            |   |   |          | -      |   |   |   | -        |                               |   |   | 456          |   |   |   | - |   |   |   | 456 |   |
| Total comprehensive income:             |   |          |     |   |                                 |   |   |                |   |   |                         |   |   |          |   |   |   |   |     |                               |   |   |         |   |   |   |   |   |   |   |   |   |
| Profit for the year                     |   |          | -        |   |                                 |   | -      |                |   |   | -                            |   |   |          | -      |   |   |   | (2,967   | )                                  |   |   | (2,966       | )      |   |   | 2,490 |   |   |   | (477 | ) |
| Other comprehensive income for the year |   |          | -        |   |                                 |   | (1,567 | )                   |   |   | -                            |   |   |          | -      |   |   |   | -        |                               |   |   | (1,567       | )      |   |   | - |   |   |   | (1,567 | ) |
| Balance at December 31, 2013 *          |   |          | 54,569   |   |                                 |   | (2,544 | )                   |   |   | 132,591                      |   |   |          | 15,847 |   |   |   | (151,824 | )                                  |   |   | 48,639       |   |   |   | (48 | ) |   |   | 48,591 |   |
| Transactions with owners:               |   |          |     |   |                                 |   |   |                |   |   |                         |   |   |          |   |   |   |   |     |                               |   |   |         |   |   |   |   |   |   |   |   |   |
| Dividends paid                          |   |          | -        |   |                                 |   | -      |                |   |   | -                            |   |   |          | -      |   |   |   | (2,850   | )                                  |   |   | (2,850       | )      |   |   | (770 | ) |   |   | (3,620 | ) |
| Total comprehensive income:             |   |          |     |   |                                 |   | -      |                |   |   |                         |   |   |          |   |   |   |   |     |                               |   |   |         |   |   |   |   |   |   |   |   |   |
| Profit for the year                     |   |          | -        |   |                                 |   | -      |                |   |   | -                            |   |   |          | -      |   |   |   | 4,435    |                               |   |   | 4,435        |   |   |   | 1,511 |   |   |   | 5,946 |   |
| Other comprehensive income for the year |   |          | -        |   |                                 |   | (685   | )                   |   |   | -                            |   |   |          | -      |   |   |   | 111      |                               |   |   | (574         | )      |   |   | - |   |   |   | (574 | ) |
| Balance at December 31, 2014 *          |   |          | 54,569   |   |                                 |   | (3,229 | )                   |   |   | 132,591                      |   |   |          | 15,847 |   |   |   | (150,128 | )                                  |   |   | 49,650       |   |   |   | 693 |   |   |   | 50,343 |   |
| Transactions with owners:               |   |          |     |   |                                 |   |   |                |   |   |                         |   |   |          |   |   |   |   |     |                               |   |   |         |   |   |   |   |   |   |   |   |   |
| Share-based payment transaction         |   |          | -        |   |                                 |   | -      |                |   |   | -                            |   |   |          | 24     |   |   |   | -        |                               |   |   | 24           |   |   |   | - |   |   |   | 24 |   |
| Dividends paid                          |   |          | -        |   |                                 |   | -      |                |   |   | -                            |   |   |          | -      |   |   |   | (2,504   | )                                  |   |   | (2,504       | )      |   |   | - |   |   |   | (2,504 | ) |
| Total comprehensive income:             |   |          |     |   |                                 |   |   |                |   |   |                         |   |   |          |   |   |   |   |     |                               |   |   |         |   |   |   |   |   |   |   |   |   |
| Profit for the year                     |   |          | -        |   |                                 |   | -      |                |   |   | -                            |   |   |          | -      |   |   |   | 4,779    |                               |   |   | 4,779        |   |   |   | 811 |   |   |   | 5,590 |   |
| Other comprehensive income for the year |   |          | -        |   |                                 |   | (3,291 | )                   |   |   | -                            |   |   |          | -      |   |   |   | 199      |                               |   |   | (3,092       | )      |   |   | - |   |   |   | (3,092 | ) |
| Balance at December 31, 2015            |   |          | 54,569   |   |                                 |   | (6,520 | )                   |   |   | 132,591                      |   |   |          | 15,871 |   |   |   | (147,654 | )                                  |   |   | 48,857       |   |   |   | 1,504 |   |   |   | 50,361 |   |

|  |   |
|--|--------|
|  |
|  |
|  |

----

| Consolidated Statements of cash flows                               |   |   |   |   |   |   |    |   |   |   |   |   |
|---------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|---------|--------|--------|--------|--------|--------|
| For the years ended  December 31                               |   |   |   |   |   |   |    |   |   |   |   |   |
| (In thousands of United States Dollars, unless indicated otherwise) |   | Note   |   |   | 2015   |   |    | * 2014 |   |   | * 2013 |   |
|                                                                |   |   |   |   |   |   |    |   |   |   |   |   |
| Cash flows from operating activities                                |   |   | 23     |   |   |   | 8,823   |   |   |   | 15,584 |   |   |   | 20,433 |   |
| Interest received                                                   |   |   |   |   |   |   | 1       |   |   |   | 14     |   |   |   | 23 |   |
| Interest paid                                                       |   |   |   |   |   |   | (493    | )      |   |   | (121   | )      |   |   | (128 | ) |
| Tax paid                                                            |   |   | 11     |   |   |   | (1,462  | )      |   |   | (4,526 | )      |   |   | (7,742 | ) |
| Net cash from operating activities                                  |   |   |   |   |   |   | 6,869   |   |   |   | 10,951 |   |   |   | 12,586 |   |
|                                                                |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Cash flows from investing activities                                |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Acquisition of property, plant and equipment                        |   |   |   |   |   |   | (16,567 | )      |   |   | (6,150 | )      |   |   | (11,396 | ) |
| Net cash used in investing activities                               |   |   |   |   |   |   | (16,567 | )      |   |   | (6,150 | )      |   |   | (11,396 | ) |
|                                                                |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Cash flows from financing activities                                |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Dividends paid                                                      |   |   |   |   |   |   | (2,504  | )      |   |   | (3,620 | )      |   |   | (5,870 | ) |
| Advance dividend paid                                               |   |   |   |   |   |   | -       |   |   |   | -      |   |   |   | (2,000 | ) |
| Proceeds from the exercise of share options                         |   |   |   |   |   |   | -       |   |   |   | -      |   |   |   | 456 |   |
| Net cash used in financing activities                               |   |   |   |   |   |   | (2,504  | )      |   |   | (3,620 | )      |   |   | (7,414 | ) |
|                                                                |   |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |
| Net (decrease)/increase in cash and cash equivalents                |   |   |   |   |   |   | (12,202 | )      |   |   | 1,181  |   |   |   | (6,224 | ) |
| Cash and cash equivalents at beginning of year                      |   |   |   |   |   |   | 23,082  |   |   |   | 21,901 |   |   |   | 28,125 |   |
| Net cash and cash equivalents at year end                           |   |   | 15     |   |   |   | 10,880  |   |   |   | 23,082 |   |   |   | 21,901 |   |

----

----

| (a) | Judgements, assumptions and estimation uncertainties |
|-----|------------------------------------------------------|

| i) | Indigenisation transaction |
|----|----------------------------|

| ii) | Site restoration provisions |
|-----|-----------------------------|

----

| iii) | Exploration and evaluation ("E&E") expenditure |
|------|----------------------------------------------------|

| iv) | Income taxes |
|-----|--------------|

| v) | Share based payment transactions |
|----|----------------------------------|

----

| vi) | Impairment |
|-----|------------|

| vii) | Functional currency |
|------|---------------------|

| viii) | Measurement of fair values |
|-------|----------------------------|

| · | Level 1: quoted prices (unadjusted) in active markets for identical assets and liabilities. |
|--------|---------------------------------------------------------------------------------------------|

| · | Level 2: inputs other than quoted prices included in Level 1 that are observable for the assets and liabilities, either directly (i.e. as price) or indirectly (i.e. derives from prices). |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Level 3: inputs for the assets or liabilities that are not based for identical assets or observable market data (unobservable inputs). |
|--------|----------------------------------------------------------------------------------------------------------------------------------------|

----

| i) | Subsidiaries |
|----|--------------|

| ii) | Loss of control |
|-----|-----------------|

| iii) | Non-controlling interests |
|------|---------------------------|

| iv) | Transactions eliminated on consolidation |
|-----|------------------------------------------|

| i) | Foreign operations |
|----|--------------------|

| · | Assets and liabilities are translated using the exchange rate at period end; and |
|--------|----------------------------------------------------------------------------------|

| · | Income, expenses and cash flow items are translated using the rate that approximates the exchange rates at the dates of the transactions. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

----

| ii) | Foreign currency translation |
|-----|------------------------------|

| i) | Non-derivative financial assets |
|----|---------------------------------|

----

| ii) | Non-derivative financial liabilities |
|-----|--------------------------------------|

----

| 4 | Significant accounting policies – (continued) |
|---|-----------------------------------------------------|

| (e) | Property, plant and equipment |
|-----|-------------------------------|

| i) | Recognition and measurement |
|----|-----------------------------|

| ii) | Exploration and evaluation expenditure |
|-----|----------------------------------------|

----

| iii) | Subsequent costs |
|------|------------------|

| iv) | Depreciation |
|-----|--------------|

| · | buildings 10 to 15 years |
|--------|--------------------------|

| · | plant and equipment 10 years |
|--------|------------------------------|

| · | fixtures and fittings including computers 4 to 10 years |
|--------|---------------------------------------------------------|

| · | motor vehicles 4 years |
|--------|------------------------|

| · | mineral properties 11 years |
|--------|-----------------------------|

| (f) | Inventories |
|-----|-------------|

----

| (g) | Impairment |
|-----|------------|

| (i) | Financial assets (including receivables) |
|-----|------------------------------------------|

----

| · | The entity's right to explore in the specific area has expired or will expire in the near future and is not expected to be renewed. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------|

| · | Substantive expenditure on further E&E activities in the specific area is neither budgeted nor planned. |
|--------|-------------------------------------------------------------------------------------------------------------|

| · | The entity has not discovered commercially viable quantities of mineral resources as a result of E&E activities in the area to date and has decided to discontinue such activities in the specific area. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Even if development is likely to proceed, the entity has sufficient data indicating that the carrying amount of the asset is unlikely to be recovered in full from successful development or by sale. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (h) | Employee benefits |
|-----|-------------------|

| (i) | Short-term employee benefits |
|-----|------------------------------|

| (I) | Share-based payment transactions |
|-----|----------------------------------|

| (i) | Share-based payment relating to employees and directors |
|-----|---------------------------------------------------------|

----

| (ii) | Share-based payment relating to the indigenisation transaction |
|------|----------------------------------------------------------------|

| (j) | Provisions |
|-----|------------|

| (l) | Revenue |
|-----|---------|

----

| (n) | Income tax |
|-----|------------|

| (i) | Current tax |
|-----|-------------|

| (ii) | Deferred tax |
|------|--------------|

| (o) | Earnings per share |
|-----|--------------------|

----

| (p) | The following standards, amendments to standards and interpretations to existing standards may possibly have an impact on the Group: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------|

| Standard/Interpretation | Effective date and expected adoption date*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|-------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| IAS 1 (Amendments)      | Presentation of Financial StatementsThere is an emphasis on materiality. Specific single disclosures that are not material do not have to be presented – even if they are a minimum requirement of a standard. The order of notes to the financial statements is not prescribed. Instead, companies can choose their own order, and can also combine, for example, accounting policies with notes on related subjects. Specific criteria are provided for presenting subtotals on the balance sheet and in the statement of profit or loss and OCI, with additional reconciliation requirements for the statement of profit or loss and OCI.The amendment is not expected to result in significant changesto the level of aggregation in the financial statements. | December 31, 2016 |

----

| IFRS 15        | This standard replaces IAS 11 Construction Contracts, IAS 18 Revenue, IFRIC 13 Customer Loyalty Programmes, IFRIC 15 Agreements for the Construction of Real Estate, IFRIC 18 Transfer of Assets from Customers and SIC-31 Revenue – Barter of Transactions Involving Advertising Services.The standard contains a single model that applies to contracts with customers and two approaches to recognizing revenue: at a point in time or over time. The model features a contract-based five-step analysis of transactions to determine whether, how much and when revenue is recognized. This new standard is not expected to have a significant impact on the Group since it is not expected to change the timing of when revenue is recognized and the amount of revenue recognized The Group has performed a preliminary assessment and expects no impact to the results or disclosures and is currently in the process of performing a more detailed assessment of the impact of this standard on the Group and will provide more information in financial statements for the year ending December 31, 2016. | December 31, 2018 |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------|
| IFRS 9         | IFRS 9 Financial InstrumentsOn July 24, 2014, the IASB issued the final IFRS 9 Financial Instruments Standard, which replaces earlier versions of IFRS 9 and completes the IASB's project to replace IAS 39 Financial Instruments: Recognition and Measurement. This standard is not expected to have a significant impact on the Group as measurement categories are similar to IAS 39 even though the criteria for classification into these categories are significantly different. The IFRS 9 impairment model has also been changed from an "incurred loss" model from IAS 39 to an "expected credit loss" model. The change is not expected to increase the provision for bad debts recognized in the Group because of the short gold sales collection period. The Group will adopt the standard in the first annual period beginning on or after January 1, 2018.                                                                                                                                                                                                                                                 | December 31, 2018 |
| IFRS 16 Leases | IFRS 16 was published in January 2016. It sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract, i.e. the customer ('lessee') and the supplier ('lessor'). IFRS 16 replaces the previous leases Standard, IAS 17 Leases, and related Interpretations. IFRS 16 has one model for lessees which will result in almost all leases being included on the Statement of Financial position. No significant changes have been included for lessors.The group and company are assessing the potential impact on the financial statements resulting from the application of IFRS 16.                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | December 31, 2019 |

----

| 5 | Blanket Zimbabwe Indigenisation Transaction |
|---|---------------------------------------------|

| · | Sold a 16% interest to the National Indigenisation and Economic Empowerment Fund ("NIEEF") for $11.74 million. |
|--------|----------------------------------------------------------------------------------------------------------------|

| · | Sold a 15% interest to Fremiro, which is owned by Indigenous Zimbabweans, for $11.01 million. |
|--------|-----------------------------------------------------------------------------------------------|

| · | Sold a 10% interest to Blanket Employee Trust Services (Private) Limited (BETS) for the benefit of present and future managers and employees for $7.34 million. The shares in BETS are held by the Blanket Mine Employee Trust (Employee Trust) with Blanket Mine's employees holding participation units in the Employee Trust. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | And donated a 10% ownership interest to the Gwanda Community Share Ownership Trust (Community Trust). In addition Blanket Mine paid a non-refundable donation of $1 million to the Community Trust. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Non-controlling interests (NCI) are recognised on the portion of shareholding upon which dividends declared by Blanket Mine accrue unconditionally to equity holders as follows: |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| - | 20% of the 16%  shareholding of NIEEF; |
|---|---------------------------------------------|

| - | 20% of the 15%  shareholding of Fremiro; |
|---|-----------------------------------------------|

| - | 100% of the 10% shareholding of the Community Trust. |
|---|------------------------------------------------------|

----

| · | This effectively means that NCI is recognised at Blanket Mine level at 16.2% of the net assets. |
|--------|-------------------------------------------------------------------------------------------------|

| · | The remaining 80% of the shareholding of NIEEF and Fremiro is recognised as non-controlling interests to the extent that their attributable share of the net asset value of Blanket Mine exceeds the balance on the facilitation loans including interest. At December 31, 2015 the attributable net asset value did not exceed the balance on the respective loan accounts and thus no additional NCI was recognised. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The transaction with the BETS is accounted for in accordance with IAS 19 Employee Benefits (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 Mine 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. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The Employee Trust and BETS are structured entities which are effectively controlled and consolidated by Blanket Mine. Accordingly, the shares held by BETS are effectively treated as treasury shares in Blanket Mine and no NCI is recognised. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  Indigenisation shareholding percentages and facilitation loan balances |         |
|------------------------------------------------------------------------------|--------------|
|                                                                         |         |   |   | Balance of facilitation |
|     USD 000's                                            | Shareholding | NCI Recognised | NCI subject to facilitation  loan | Dec, 31 2015 |  Dec, 31 2014 | Jan, 1 2014 |
| NIEEF                                                                        | 16%          | 3.2% | 12.8% | 11,907 | 11,907 | 11,742 |
| Fremiro                                                                      | 15%          | 3.0% | 12.0% | 11,657 | 11,657 | 11,402 |
| Community Trust                                                              | 10%          | 10.0% | - | - | - | - |
| BETS ~                                                                       | 10%          | -* | -* |   7,772 |   7,772 | 7,573 |
|                                                                         | 51%          | 16.2% | 24.8% | 31,336 | 31,336 | 30,675 |

----

| Balance at January 1, 2014          |   | 30,675  |
|-------------------------------------|--------|---------|
| Interest accrued                    |   | 2,407   |
| Dividends used to repay loans       |   | (1,746) |
| Balance at December 31, 2014        |   | 31,336  |
| Interest accrued &              |   | -       |
| Dividends used to repay loans & |   | -       |
| Balance at December 31, 2015        |   | 31,336  |

| (a) | Advances to the Community Trust against their right to receive dividends declared by Blanket Mine on their shareholding as follows: |
|-----|-------------------------------------------------------------------------------------------------------------------------------------|

| · | A $2 million payment on or before September 30, 2012; |
|--------|-------------------------------------------------------|

| · | A $1 million payment on or before February 28, 2013; and |
|--------|----------------------------------------------------------|

| · | A $1 million payment on or before April 30, 2013. |
|--------|---------------------------------------------------|

| (b) | An advance payment of $1.8 million to NIEEF against their right to receive dividends declared by Blanket Mine on their shareholding.  The advance payment was debited to an interest-free loan account and was repayable by way of set off of future dividends on the Blanket Mine shares owned by NIEEF. Whilst any amount remained outstanding on the NIEEF dividend loan account, a moratorium was placed on the NIEEF facilitation loan interest until dividends resume. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                      |   |   | NIEEF  | Community Trust | Total  |
|-------------------------------------------|--------|--------|--------|-----------------|--------|
|                                      |   |   |   |            |   |
| Balance at January 1, 2014                |   |   | 358    | 3,507           | 3,865  |
| Interest accrued                          |   |   | -      | 334             | 334    |
| Dividends used to repay advance dividends |   |   | (358)  | (604)           | (962)  |
| Balance at December 31, 2014              |   |   | -      | 3,237           | 3,237  |
| Interest accrued &                    |   |   | -      | -               | -      |
| Dividends used to repay advance dividends |   |   | -      | -               | -      |
| Balance at December 31, 2015              |   |   | -      | 3,237           | 3,237  |

| · | Currency risk (refer note 24) |
|--------|-------------------------------|

| · | Interest rate risk (refer note 24) |
|--------|------------------------------------|

| · | Credit risk (refer note 24) |
|--------|-----------------------------|

| · | Liquidity risk (refer note 24) |
|--------|--------------------------------|

----

| (a) | Currency risk |
|-----|---------------|

| (b) | Interest rate risk |
|-----|--------------------|

|  (c) | Credit risk |
|-----------|-------------|

| (d) | Liquidity risk |
|-----|----------------|

----

|         | December 31, 2015 | December 31, 2014 | January 1, 2014 |
|--------------|-------------------|-------------------|-----------------|
|         |              |              |            |
| Total equity | 50,361            | 50,343            | 48,591          |

|                   | 2015   | 2014   | 2013   |   |
|------------------------|--------|--------|--------|--------|
|                   |   |   |   |   |
| Salaries and wages     | 11,908 | 10,014 | 9,811  |   |
| Consumable materials   | 14,479 | 14,565 | 14,049 |   |
| Site restoration       | -      | 29     | 147    |   |
| Exploration            | 380    | 343    | (280)  |   |
| Safety                 | 551    | 473    | 578    |   |
| On mine administration | 2,701  | 2,484  | 2,309  |   |
|                   | 30,019 | 27,908 | 26,614 |   |

----

|                                         | 2015   | 2014   | 2013   |
|----------------------------------------------|--------|--------|--------|
|                                         |   |   |   |
| Investor  relations                     | 513    | 514    | 702    |
| Audit fee                                    | 240    | 356    | 323    |
| Legal fee and disbursements                  | 452    | 722    | 426    |
| Advisory services fee                        | 355    | 24     | 27     |
| Listing fees                                 | 206    | 318    | 330    |
| Directors fees company                       | 191    | 298    | 280    |
| Directors fees Blanket                       | 60     | 38     | 73     |
| Employee costs                               | 3,106  | 3,152  | 2,586  |
| Office costs  - Zambia *                | 716    | 896    | -      |
| Other office administration costs            | 547    | 16     | -      |
| Unrecoverable VAT expenses and penalties     | 298    | -      | -      |
| Employee benefits relating to indigenisation | -      | 140    | 210    |
| Travel costs                                 | 325    | 303    | 308    |
| Donation to scholarship fund                 | -      | -      | 2,035  |
| Donation to community                        | 58     | -      | -      |
| Eersteling Gold Mine administration costs    | 111    | 120    | 246    |
| Professional consulting fees                 | 444    | 490    | -      |
|                                         | 7,622  | 7,387  | 7,546  |

| Finance income                                 | 2015   | 2014   | 2013   |
|------------------------------------------------|--------|--------|--------|
|                                           |   |   |   |
| Interest received – Bank                 | 1      | 14     | 23     |
|                                           |   |   |   |
| Finance cost                                   |   |   |   |
|                                           |   |   |   |
| Interest paid – Bank                     | 49     | 20     | 29     |
| Unwinding of rehabilitation provision          | 43     | 33     | -      |
| Interest – South African Revenue Service | 344    | -      | -      |
| Finance charges – Overdraft              | 100    | 101    | 99     |
|                                           | 536    | 154    | 128    |

----

|                                              |   | 2015   |   |   | 2014   |   |   | 2013   |   |
|---------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Tax recognised in profit or loss                  |   |   |   |   |   |   |   |   |   |
|                                              |   |   |   |   |   |   |   |   |   |
| Current tax                                       |   |   | (197   | )      |   |   | 5,276  |   |   |   | 7,488 |   |
| Income tax– current year                    |   |   | 506    |   |   |   | 4,582  |   |   |   | 4,991 |   |
| Income tax – Prior year overprovision       |   |   | (1,636 | )      |   |   | (194   | )      |   |   | - |   |
| Withholding tax expense                           |   |   | 933    |   |   |   | 888    |   |   |   | 2,497 |   |
|  Deferred tax expense                        |   |   | 2,567  |   |   |   | 706    |   |   |   | 2,121 |   |
| Origination and reversal of temporary differences |   |   | 2,567  |   |   |   | 468    |   |   |   | 2,121 |   |
| Change in effective tax rate                      |   |   | -      |   |   |   | 238    |   |   |   | - |   |
|                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Tax expense – recognised in profit or loss  |   |   | 2,370  |   |   |   | 5,982  |   |   |   | 9,609 |   |

| Income tax - current year |   |   | (199  | )      |   |   | (111  | )      |   |   | -     |   |
|---------------------------|--------|--------|-------|--------|--------|--------|-------|--------|--------|--------|-------|--------|
| Tax expense               |   |   | 2,171 |   |   |   | 5,871 |   |   |   | 9,609 |   |

| Deferred tax assets have not been recognised in respect of the following items: |   | 2015   |   |   | 2014   |   |    | 2013   |   |
|---------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|---------|--------|--------|
|                                                                            |   |   |   |   |   |   |    |   |   |
| Tax losses carried forward                                                      |   |   | 11,150 |   |   |   | *19,957 |   |   |   | 14,319 |   |
|                                                                            |   |   | 11,150 |   |   |   | 19,957  |   |   |   | 14,319 |   |

----

| Year      | Amount* |
|-----------|---------|
| 2026      | 2,451   |
| 2027      | 2,854   |
| 2028      | 2,139   |
| 2029      | 1,461   |
| 2030      | 1,567   |
| 2031      | 2,262   |
| 2032      | 2,667   |
| 2033      | 2,812   |
| 2034      | 3,710   |
| 2035      | 1,643   |
| No expiry | 17,553  |
|      | 41,119  |

| Tax paid                                                         |   | 2015   |   |   | 2014   |   |   | 2013   |   |
|------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                             |   |   |   |   |   |   |   |   |   |
| Net income tax payable at January 1                              |   |   | (1,617 | )      |   |   | (1,064 | )      |   |   | (1,528 | ) |
| Current and withholding tax credit/(expense)                     |   |   | 197    |   |   |   | (5,276 | )      |   |   | (7,488 | ) |
| Income tax expense recognised through other comprehensive income |   |   | 199    |   |   |   | 111    |   |   |   | - |   |
| Foreign currency movement                                        |   |   | 103    |   |   |   | 86     |   |   |   | 208 |   |
| Tax paid                                                         |   |   | 1,462  |   |   |   | 4,526  |   |   |   | 7,742 |   |
| Net income tax receivable/(payable) at December 31               |   |   | 344    |   |   |   | (1,617 | )      |   |   | (1,064 | ) |

| Net income tax                      |   | December 31, 2015 |   |   | December 31, 2014 |   |   | January 1, 2014 |   |
|-------------------------------------|--------|-------------------|--------|--------|-------------------|--------|--------|-----------------|--------|
|                                |   |              |   |   |              |   |   |            |   |
| Income tax receivable *             |   |              | 397    |   |              |   | 95     |            |   |   | - |   |
| Income tax payable                  |   |              | (53    | )      |              |   | (1,712 | )               |   |   | (1,064 | ) |
| Net income tax receivable/(payable) |   |              | 344    |   |              |   | (1,617 | )               |   |   | (1,064 | ) |

*** Receivable is due to an overpayment made to Her Majesty's Revenue and Customs during quarter 1 of 2015 as well as an overpayment to the Zimbabwe Revenue Authority during Quarter 4 of 2014. These overpayments cannot be offset against other tax jurisdictions.**

----

|                                          |   | 2015   |   |   | 2015   |   |   | 2014   |   |   | 2014   |   |   | 2013   |   |   | 2013   |   |
|-----------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                          |   | %      |   |   |   |   |   | %      |   |   |   |   |   | %      |   |   |   |   |
| Profit for the year                           |   |   |   |   |   | 5,590  |   |   |   |   |   |   | 5,946  |   |   |   |   |   |   | (477 | ) |
| Total tax expense                             |   |   |   |   |   | 2,370  |   |   |   |   |   |   | 5,982  |   |   |   |   |   |   | 9,609 |   |
| Profit before tax                             |   |   |   |   |   | 7,960  |   |   |   |   |   |   | 11,928 |   |   |   |   |   |   | 9,132 |   |
|                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income tax at Company's domestic tax rate     |   |   | 26.5   | %      |   |   | 2,109  |   |   |   | 26.5   | %      |   |   | 3,161  |   |   |   | 26.5 | % |   |   | 2,420 |   |
| Tax rate differences in foreign jurisdictions |   |   |   |   |   |   | (63    | )      |   |   |   |   |   |   | (349   | )      |   |   |   |   |   |   | (1,272 | ) |
| Change in tax rate                            |   |   |   |   |   |   | -      |   |   |   |   |   |   |   | 238    |   |   |   |   |   |   |   | - |   |
| Foreign currency difference                   |   |   |   |   |   |   | (12    | )      |   |   |   |   |   |   | 34     |   |   |   |   |   |   |   | (147 | ) |
| Withholding tax – not offsetable        |   |   |   |   |   |   | 317    |   |   |   |   |   |   |   | 185    |   |   |   |   |   |   |   | 1,784 |   |
| Permanent differences                         |   |   |   |   |   |   | 1,105  |   |   |   |   |   |   |   | 1,584  |   |   |   |   |   |   |   | 1,186 |   |
| Deemed interest on loans                      |   |   |   |   |   |   | 31     |   |   |   |   |   |   |   | 636    |   |   |   |   |   |   |   | - |   |
| Share based payments                          |   |   |   |   |   |   | 6      |   |   |   |   |   |   |   | -      |   |   |   |   |   |   |   | 17 |   |
| Impairment                                    |   |   |   |   |   |   | -      |   |   |   |   |   |   |   | 37     |   |   |   |   |   |   |   | - |   |
| Non-deductible South African tax transactions |   |   |   |   |   |   | 470    |   |   |   |   |   |   |   | -      |   |   |   |   |   |   |   | - |   |
| Royalties                                     |   |   |   |   |   |   | 632    |   |   |   |   |   |   |   | 881    |   |   |   |   |   |   |   | - |   |
| Establishment fees                            |   |   |   |   |   |   | -      |   |   |   |   |   |   |   | -      |   |   |   |   |   |   |   | 25 |   |
| Donations                                     |   |   |   |   |   |   | 15     |   |   |   |   |   |   |   | 3      |   |   |   |   |   |   |   | 58 |   |
| Unrealised foreign exchange                   |   |   |   |   |   |   | -      |   |   |   |   |   |   |   | -      |   |   |   |   |   |   |   | 522 |   |
| Other                                         |   |   |   |   |   |   | (49    | )      |   |   |   |   |   |   | 27     |   |   |   |   |   |   |   | 564 |   |
| Over provision of taxes in prior years        |   |   |   |   |   |   | (1,636 | )      |   |   |   |   |   |   | (194   | )      |   |   |   |   |   |   | - |   |
| Change in unrecognized deferred tax assets    |   |   |   |   |   |   | 550    |   |   |   |   |   |   |   | 1,323  |   |   |   |   |   |   |   | 5,638 |   |
| Tax expense - recognised in profit or loss    |   |   |   |   |   |   | 2,370  |   |   |   |   |   |   |   | 5,982  |   |   |   |   |   |   |   | 9,609 |    |

----

|                          |   | Assets |   |   | Liabilities |   |   | Net    |   |
|-------------------------------|--------|--------|--------|--------|-------------|--------|--------|--------|--------|
|                          |   | 2015   |   |   | 2014        |   |   | 2015   |   |   | 2014 |   |   | *2015 |   |   | 2014 |   |
|                          |   |   |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Property, plant and equipment |   |   | -      |   |        |   | -      |   |   |   | (12,988 | ) |   |   | (9,223 | ) |   |   | (12,988 | ) |   |   | (9,223 | ) |
| Prepayments                   |   |   | -      |   |        |   | -      |   |   |   | (3 | ) |   |   | (22 | ) |   |   | (3 | ) |   |   | (22 | ) |
| Provisions                    |   |   | 733    |   |        |   | 565    |   |   |   | - |   |   |   | - |   |   |   | 733 |   |   |   | 565 |   |
| Assessed losses recognised    |   |   | 998    |   |        |   | -      |   |   |   | - |   |   |   | - |   |   |   | 998 |   |   |   | - |   |
| Tax assets/ (liabilities)     |   |   | 1,731  |   |        |   | 565    |   |   |   | (12,991 | ) |   |   | (9,245 | ) |   |   | (11,260 | ) |   |   | (8,680 | ) |

|                          |   | Balance January 1, 2015 |   |   | Recognised in profit or loss |   |   | Foreign exchange movement |   |   | Balance December 31, 2015 |   |
|-------------------------------|--------|-------------------------|--------|--------|------------------------------|--------|--------|---------------------------|--------|--------|---------------------------|--------|
| Property, plant and equipment |   |                    | (9,223 | )      |                         |   | (3,765 | )                         |   |   | -                         |   |   |   | (12,988 | ) |
| Prepayments                   |   |                    | (22    | )      |                         |   | 16     |                      |   |   | 3                         |   |   |   | (3 | ) |
| Provisions                    |   |                    | 565    |   |                         |   | 184    |                      |   |   | (16                       | )      |   |   | 733 |   |
| Assessed loss recognised      |   |                    | -      |   |                         |   | 998    |                      |   |   | -                         |   |   |   | 998 |   |
| Total                         |   |                    | (8,680 | )      |                         |   | (2,567 | )                         |   |   | (13                       | )      |   |   | (11,260 | ) |
|                          |   |                    |   |   |                         |   |   |                      |   |   |                      |   |   |   |   |   |

----

|                          |   | Balance January 1, 2014 |   |   | Recognised in profit or loss |   |   | Foreign exchange movement |   |   | Balance December 31, 2014 |   |
|-------------------------------|--------|-------------------------|--------|--------|------------------------------|--------|--------|---------------------------|--------|--------|---------------------------|--------|
| Property, plant and equipment |   |                    | (8,058 | )      |                         |   | (835   | )                         |   |   | (330                      | )      |   |   | (9,223 | ) |
| Prepayments                   |   |                    | -      |   |                         |   | -      |                      |   |   | (22                       | )      |   |   | (22 | ) |
| Provisions                    |   |                    | 207    |   |                         |   | 108    |                      |   |   | 250                       |   |   |   | 565 |   |
| Inventory                     |   |                    | (80    | )      |                         |   | -      |                      |   |   | 80                        |   |   |   | - |   |
| Other                         |   |                    | (36    | )      |                         |   | 21     |                      |   |   | 15                        |   |   |   | - |   |
| Total                         |   |                    | (7,967 | )      |                         |   | (706   | )                         |   |   | (7                        | )      |   |   | (8,680 | ) |

|                          |   | Balance January 1, 2013 |   |   | Recognised in profit or loss |   |   | Foreign exchange movement |   |   | Balance December 31, 2013 |   |
|-------------------------------|--------|-------------------------|--------|--------|------------------------------|--------|--------|---------------------------|--------|--------|---------------------------|--------|
| Property, plant and equipment |   |                    | (6,196 | )      |                         |   | (2,280 | )                         |   |   | 418                       |   |   |   | (8,058 | ) |
| Provisions                    |   |                    | 182    |   |                         |   | 39     |                      |   |   | (14                       | )      |   |   | 207 |   |
| Inventory                     |   |                    | 66     |   |                         |   | 153    |                      |   |   | (299                      | )      |   |   | (80 | ) |
| Other                         |   |                    | 59     |   |                         |   | (33    | )                         |   |   | (62                       | )      |   |   | (36 | ) |
| Total                         |   |                    | (5,889 | )      |                         |   | (2,121 | )                         |   |   | 43                        |   |   |   | (7,967 | ) |

----

|                                |   | Land and buildings |   |   | Mineral properties depreciated |   |   | Mineral properties not depreciated |   |   | Plant and equipment |   |   | Fixtures and fittings |   |   | Motor vehicles |   |   | Total  |   |
|-------------------------------------|--------|--------------------|--------|--------|--------------------------------|--------|--------|------------------------------------|--------|--------|---------------------|--------|--------|-----------------------|--------|--------|----------------|--------|--------|--------|--------|
|                                |   |               |   |   |                           |   |   |                               |   |   |                |   |   |                  |   |   |           |   |   |   |   |
| Cost                                |   |               |   |   |                           |   |   |                               |   |   |                |   |   |                  |   |   |           |   |   |   |   |
| Balance at January 1, 2013          |   |               | 4,563  |   |                           |   | 11,399 |                               |   |   | 10,909              |   |   |                  | 19,473 |   |           |   | 1,204  |   |   |   | 1,794 |   |   |   | 49,342 |   |
| Additions                           |   |               | 3,145  |   |                           |   | 2,617  |                               |   |   | 4,321               |   |   |                  | 950    |   |           |   | 83     |   |   |   | 280 |   |   |   | 11,396 |   |
| Foreign exchange movement           |   |               | (88    | )      |                           |   | -      |                               |   |   | 28                  |   |   |                  | (344   | )      |           |   | (67    | )      |   |   | 1 |   |   |   | (470 | ) |
| Balance at December 31, 2013        |   |               | 7,622  |   |                           |   | 14,016 |                               |   |   | 15,258              |   |   |                  | 20,079 |   |           |   | 1,220  |   |   |   | 2,075 |   |   |   | 60,270 |   |
|                                |   |               |   |   |                           |   |   |                               |   |   |                |   |   |                  |   |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Balance at January 1, 2014          |   |               | 7,622  |   |                           |   | 14,016 |                               |   |   | 15,258              |   |   |                  | 20,079 |   |           |   | 1,220  |   |   |   | 2,075 |   |   |   | 60,270 |   |
| Additions                           |   |               | 536    |   |                           |   | *3,070 |                               |   |   | 1,688               |   |   |                  | 1,740  |   |           |   | 114    |   |   |   | 18 |   |   |   | 7,166 |   |
| Disposals                           |   |               | -      |   |                           |   | -      |                               |   |   | -                   |   |   |                  | (275   | )      |           |   | -      |   |   |   | (8 | ) |   |   | (283 | ) |
| Reallocations between asset classes |   |               | (580   | )      |                           |   | 1,661  |                               |   |   | -                   |   |   |                  | (1,084 | )      |           |   | 3      |   |   |   | - |   |   |   | - |   |
| Foreign exchange movement           |   |               | 30     |   |                           |   | 92     |                               |   |   | (3,684              | )      |   |                  | 508    |   |           |   | (145   | )      |   |   | (114 | ) |   |   | (3,313 | ) |
| Balance at December 31, 2014        |   |               | 7,608  |   |                           |   | 18,839 |                               |   |   | 13,262              |   |   |                  | 20,968 |   |           |   | 1,192  |   |   |   | 1,971 |   |   |   | 63,840 |   |

----

| Cost                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | Land and buildings |   |   | Mineral properties depreciated |   |    | Mineral properties not depreciated |   |   | Plant and equipment |   |   | Fixtures and fittings |   |   | Motor vehicles |   |   | Total  |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|--------|--------|--------------------------------|--------|---------|------------------------------------|--------|--------|---------------------|--------|--------|-----------------------|--------|--------|----------------|--------|--------|--------|--------|
| Balance at January 1, 2015                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |               | 7,608  |   |                           |   | 18,839  |                               |   |   | 13,262              |   |   |                  | 20,968 |   |           |   | 1,192  |   |   |   | 1,971 |   |   |   | 63,840 |   |
| Additions**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |               | 681    |   |                           |   | *14,359 |                               |   |   | 1,595               |   |   |                  | 1,144  |   |           |   | 149    |   |   |   | 265 |   |   |   | 18,193 |   |
| Surrender of Zambian assets ***                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |               | -      |   |                           |   | -       |                               |   |   | (11,527             | )      |   |                  | -      |   |           |   | -      |   |   |   | - |   |   |   | (11,527 | ) |
| Reallocations between asset classes                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |               | (256   | )      |                           |   | -       |                               |   |   | 1,012               |   |   |                  | (756   | )      |           |   | -      |   |   |   | - |   |   |   | - |   |
| Disposals                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |               | -      |   |                           |   | -       |                               |   |   | -                   |   |   |                  | (124   | )      |           |   | -      |   |   |   | (77 | ) |   |   | (201 | ) |
| Foreign exchange movement                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |               | (44    | )      |                           |   | (89     | )                                  |   |   | (69                 | )      |   |                  | (606   | )      |           |   | (64    | )      |   |   | (90 | ) |   |   | (962 | ) |
| Balance at December 31, 2015                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |               | 7,989  |   |                           |   | 33,109  |                               |   |   | 4,273               |   |   |                  | 20,626 |   |           |   | 1,277  |   |   |   | 2,069 |   |   |   | 69,343 |   |
|   *     Included in mineral properties depreciated is an amount of $391 (2014: $1,016; 2013:$394) relating to rehabilitation asset capitalised refer note 21.**   Included in additions is an amount of $26,192 (2014:$11,295; 2013:$3,625) relating to capital work in progress.*** The Group surrendered all exploration rights relating to the Zambian operations for a nominal value. The Zambian assets were fully impaired in previous years. |   |

----

|                                           |   | Land and buildings |   |   | Mineral properties depreciated |   |   | Mineral properties not depreciated |      |   | Plant and equipment |    |   | Fixtures and fittings |   |   | Motor vehicles |   |   | Total  |   |
|------------------------------------------------|--------|--------------------|--------|--------|--------------------------------|--------|--------|------------------------------------|-----------|--------|---------------------|---------|--------|-----------------------|--------|--------|----------------|--------|--------|--------|--------|
| Accumulated depreciation and Impairment losses |   |               |   |   |                           |   |   |                               |      |   |                |    |   |                  |   |   |           |   |   |   |   |
| Balance at January 1, 2013                     |   |               | 985    |   |                           |   | 2,041  |                               |      |   | -                   |    |   |                  | 7,810  |   |           |   | 988    |   |   |   | 808 |   |   |   | 12,632 |   |
| Depreciation for the year                      |   |               | 264    |   |                           |   | 602    |                               |      |   | -                   |    |   |                  | 1,957  |   |           |   | 69     |   |   |   | 289 |   |   |   | 3,181 |   |
| Impairment ****                                |   | (a)387             |   |   |                           | -      |   |                               | (b)13,314 |   |                |    | 88     |                  |   |   | -              |   |   |   | -      |   |   |   | 13,789 |   |
| Foreign exchange movement                      |   |               | (15    | )      |                           |   | (1     | )                                  |      |   | 86                  |    |   |                  | (612   | )      |           |   | (63    | )      |   |   | 1 |   |   |   | (604 | ) |
| Balance at December 31, 2013                   |   |               | 1,621  |   |                           |   | 2,642  |                               |      |   | 13,400              |    |   |                  | 9,243  |   |           |   | 994    |   |   |   | 1,098 |   |   |   | 28,998 |   |
|                                           |   |               |   |   |                           |   |   |                               |      |   |                |    |   |                  |   |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Balance at January 1, 2014                     |   |               | 1,621  |   |                           |   | 2,642  |                               |      |   | 13,400              |    |   |                  | 9,243  |   |           |   | 994    |   |   |   | 1,098 |   |   |   | 28,998 |   |
| Depreciation for the year                      |   |               | 514    |   |                           |   | 734    |                               |      |   | -                   |    |   |                  | 1,891  |   |           |   | 78     |   |   |   | 323 |   |   |   | 3,540 |   |
| Impairment                                     |   |               | -      |   |                           |   | -      |                               |      |   |                | -  |   |                  | 164    |   |           |   | 14     |   |   |   | - |   |   |   | 178 |   |
| Disposals                                      |   |               | -      |   |                           |   | -      |                               |      |   | -                   |    |   |                  | (214   | )      |           |   | -      |   |   |   | (8 | ) |   |   | (222 | ) |
| Foreign exchange movement                      |   |               | (372   | )      |                           |   | 59     |                               |      |   | (1,873              | )       |   |                  | (954   | )      |           |   | (140   | )      |   |   | (110 | ) |   |   | (3,390 | ) |
| Balance at December 31, 2014                   |   |               | 1,763  |   |                           |   | 3,435  |                               |      |   | 11,527              |    |   |                  | 10,130 |   |           |   | 946    |   |   |   | 1,303 |   |   |   | 29,104 |   |
|                                           |   |               |   |   |                           |   |   |                               |      |   |                |    |   |                  |   |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Balance at January 1, 2015                     |   |               | 1,763  |   |                           |   | 3,435  |                               |      |   | 11,527              |    |   |                  | 10,130 |   |           |   | 946    |   |   |   | 1,303 |   |   |   | 29,104 |   |
| Depreciation for the year                      |   |               | 559    |   |                           |   | 451    |                               |      |   | -                   |    |   |                  | 1,894  |   |           |   | 98     |   |   |   | 320 |   |   |   | 3,322 |   |
| Surrender of Zambian assets                    |   |               | -      |   |                           |   | -      |                               |      |   | (11,527             | )       |   |                  | -      |   |           |   | -      |   |   |   | - |   |   |   | (11,527 | ) |
| Disposals ***                                  |   |               | -      |   |                           |   | -      |                               |      |   | -                   |    |   |                  | (117   | )      |           |   | -      |   |   |   | (51 | ) |   |   | (168 | ) |
| Foreign exchange movement                      |   |               | (1     | )      |                           |   | (105   | )                                  |      |   | -                   |    |   |                  | (383   | )      |           |   | (48    | )      |   |   | (69 | ) |   |   | (606 | ) |
| Balance at December 31, 2015                   |   |               | 2,321  |   |                           |   | 3,781  |                               |      |   | -                   |    |   |                  | 11,524 |   |           |   | 996    |   |   |   | 1,503 |   |   |   | 20,125 |   |

----

| 12Property, plant and equipment - (continued) |   |   |   |   |   |   |   |   |   |   |   |   |   |
|-----------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Carrying amounts                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| At December 31, 2013                          |   |   | 6,001  |   |   |   | 11,374 |   |   |   | 1,858  |   |   |   | 10,836 |   |   |   | 226 |   |   |   | 977 |   |   |   | 31,272 |   |
| At December 31, 2014                          |   |   | 5,845  |   |   |   | 15,404 |   |   |   | 1,735  |   |   |   | 10,838 |   |   |   | 246 |   |   |   | 668 |   |   |   | 34,736 |   |
| At December 31, 2015                          |   |   | 5,668  |   |   |   | 29,328 |   |   |   | 4,273  |   |   |   | 9,102 |   |   |   | 281 |   |   |   | 566 |   |   |   | 49,218 |   |

|   | (a)    | the cost of the mineral rights held by Eersteling Gold Mine.                                                                                                                                                |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (b)    | exploration expenditure incurred at Caledonia Nama Limited in Zambia. The full carrying value of costs previously incurred and capitalised were impaired in 2013 for the following reasons:                 |
|   | · | Substantive expenditure on further E&E activities in the specific area is neither budgeted nor planned, and                                                                                             |
|   | · | The Group has not discovered commercially viable quantities of mineral resources as a result of E&E activities in the area to date and has decided to discontinue such activities in the specific area. |

----

|              |   | December 31, 2015 |   |   | December 31, 2014 |   |   | January 1, 2014 |   |
|-------------------|--------|-------------------|--------|--------|-------------------|--------|--------|-----------------|--------|
|              |   |              |   |   |              |   |   |            |   |
| Consumable stores |   |              | 5,739  |   |              |   | 5,962  |            |   |   | 5,605 |   |
| Gold in process   |   |              | 352    |   |              |   | 550    |            |   |   | 814 |   |
|              |   |              | 6,091  |   |              |   | 6,512  |            |   |   | 6,419 |   |

|                                                    |   | December 31, 2015 |   |   | December 31, 2014 |   |   | January 1, 2014 |   |
|---------------------------------------------------------|--------|-------------------|--------|--------|-------------------|--------|--------|-----------------|--------|
|                                                    |   |              |   |   |              |   |   |            |   |
| Bullion revenue receivable                              |   |              | -      |   |              |   | -      |            |   |   | 1,554 |   |
| VAT receivables                                         |   |              | 2,997  |   |              |   | 1,006  |            |   |   | 1,244 |   |
| Deposits for stores and equipment and other receivables |   |              | 842    |   |              |   | 749    |            |   |   | 838 |   |
|                                                    |   |              | 3,839  |   |              |   | 1,755  |            |   |   | 3,636 |   |

----

|                                                             |   | December 31, 2015 |   |   | December 31, 2014 |   |   | January 1,2014 |   |
|------------------------------------------------------------------|--------|-------------------|--------|--------|-------------------|--------|--------|----------------|--------|
|                                                             |   |              |   |   |              |   |   |           |   |
| Bank balances                                                    |   |              | 12,568 |   |              |   | 23,082 |           |   |   | 23,580 |   |
| Cash and cash equivalents in the statement of financial position |   |              | 12,568 |   |              |   | 23,082 |           |   |   | 23,580 |   |
| Bank overdrafts used for cash management purposes                |   |              | (1,688 | )      |              |   | -      |           |   |   | (1,679 | ) |
| Net cash and cash equivalents at year end                        |   |              | 10,880 |   |              |   | 23,082 |           |   |   | 21,901 |   |

| Authorised                                             |   |
|--------------------------------------------------------|--------|
| Unlimited number of common shares of no par value.     |   |
| Unlimited number of preference shares of no par value. |   |
|                                                   |   |
|   Issued                                     |   | Number of fully paid common shares |   |   | Amount |   |
| January 1, 2014                                        |   |   | 52,117,908 |   |   |   | 54,569 |   |
| December 31, 2014                                      |   |   | 52,117,908 |   |   |   | 54,569 |   |
| Cancelled*                                             |   |   | 39,000 |   |   |   | - |   |
| December 31, 2015                                      |   |   | 52,078,908 |   |   |   | 54,569 |   |

----

| Reserves                             |   | December 31, |    |   | December 31, |   |    | January 1, |   |
|--------------------------------------|--------|--------------|---------|--------|--------------|--------|---------|------------|--------|
|                                 |   | 2015         |    |   | 2014         |   |    | 2014       |   |
| Foreign currency translation reserve |   |         | (6,520  | )      |         |   | (3,229  | )          |   |   | (2,544 | ) |
| Share-based payment reserve          |   |         | 15,871  |   |         |   | 15,847  |       |   |   | 15,847 |   |
| Contributed surplus                  |   |         | 132,591 |   |         |   | 132,591 |       |   |   | 132,591 |   |
| Total                                |   |         | 141,942 |   |         |   | 145,209 |       |   |   | 145,894 |   |

----

| (In number of shares)                            |   | Note   |   |   | 2015   |       |   | 2014   |   |       | 2013   |   |
|--------------------------------------------------|--------|--------|--------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
|                                             |   |   |   |   |   |       |   |   |   |       |   |   |
| Issued share capital at beginning of year        |   | 16     |   |   |   | 52,117,908 |   |   |   | 52,117,908 |   |   |   | 51,446,178 |   |
| Weighted average cancellation during the year    |   |   |   |   |   | (22,821    | )      |   |   | -          |   |   |   | 540,288 |   |
| Weighted average number of shares at December 31 |   |   |   |   |   | 52,095,087 |   |   |   | 52,117,908 |   |   |   | 51,986,466 |   |

|                                              |   | 2015   |   |   | 2014   |   |   | 2013   |   |
|----------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Profit attributable to shareholders          |   |   | 4,779  |   |   |   | 4,435  |   |   |   | (2,967 | ) |
| Blanket Mine Employee Trust Adjustment       |   |   | (100   | )      |   |   | (48    | )      |   |   | 158 |   |
| Adjusted profit attributable to shareholders |   |   | 4,679  |   |   |   | 4,387  |   |   |   | (2,809 | ) |
| Basic earnings/(loss) per share -$           |   |   | 0.09   |   |   |   | 0.08   |   |   |   | (0.05 | ) |

| · | Basic earnings are adjusted for the amounts that accrue to other equity holders of subsidiaries upon the full distribution of post-acquisition earnings to shareholders. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Diluted earnings is calculated on the basis that the unpaid ownership interests of Blanket Mine's Indigenisation shareholders are effectively treated as options whereby the weighted average fair value for the period of the Blanket Mine shares issued to Indigenous Zimbabweans and which are subject to settlement of the loan accounts is compared to the balance of the loan accounts and any excess portion is regarded as dilutive.  The difference between the number of Blanket Mine shares subject to the settlement of the loan accounts and the number of Blanket Mine shares that would have been issued at the average fair value is treated as the issue of shares for no consideration and regarded as dilutive shares.  The calculated dilution is taken into account with additional earnings attributable to the dilutive shares in Blanket Mine, if any. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (In number of shares)                                            |   | 2015   |       |   | 2014   |   |       | 2013   |   |
|------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
|                                                             |   |   |       |   |   |   |       |   |   |
| Weighted average number of shares at December 31                 |   |   | 52,095,087 |   |   |   | 52,117,908 |   |   |   | 51,986,466 |   |
| Effect of dilutive options                                       |   |   | 108,169    |   |   |   | 27,561     |   |   |   | 21,180 |   |
| Weighted average number of  shares (diluted) at December 31 |   |   | 52,203,255 |   |   |   | 52,145,469 |   |   |   | 52,007,646 |   |
| Diluted earnings/(loss) per share - $                            |   |   | 0.09       |   |   |   | 0.08       |   |   |   | (0.05 | ) |

----

|   | Number of Options |   | Exercise Price |   | Expiry Date(1) |   |
|--------|-------------------|--------|----------------|--------|----------------|--------|
|   |              |   | Canadian $     |   |           |   |
|   | 1,161,000         |   | 1.30           |   | Jan 31, 2016   |   |
|   | 30,000            |   | 0.70           |   | May 11, 2016   |   |
|   | 744,920           |   | 0.90           |   | Sept 10, 2018  |   |
|   | 190,000           |   | 0.72           |   | Nov 21,2018    |   |
|   | 25,000            |   | 0.80           |   | Oct 8, 2025    |   |
|   | 90,000            |   | 0.74           |   | Dec 22, 2025   |   |
|   | 2,240,920         |   |           |   |           |   |

| (1) | In terms of the approved Plan, the expiry date of options that expire in a closed period will be extended by 10 days from the cessation of the close period. The options with an expiry date of January 31, 2016 will therefore expire 10 days after the publication of these financial statements. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                     |   | Number of Options |      |   | Weighted Avg. Exercise Price |   |
|----------------------------------------------------------|--------|-------------------|-----------|--------|------------------------------|--------|
|                                                     |   |              |      |   | Canadian $                   |   |
| Options outstanding and exercisable at December 31, 2012 |   |              | 3,329,650 |   |                         |   | 1.05 |   |
| Exercised                                                |   |              | (671,730  | )      |                         |   | 0.70 |   |
| Granted                                                  |   |              | 190,000   |   |                         |   | 0.72 |   |
| Options outstanding and exercisable at December 31, 2013 |   |              | 2,847,920 |   |                         |   | 1.11 |   |
| Expired or forfeited                                     |   |              | (282,000  | )      |                         |   | 1.13 |   |
| Options outstanding and exercisable at December 31, 2014 |   |              | 2,565,920 |   |                         |   | 1.11 |   |
| Expired or forfeited                                     |   |              | (440,000  | )      |                         |   | 1.11 |   |
| Granted                                                  |   |              | 115,000   |   |                         |   | 0.73 |   |
| Options outstanding and exercisable at December 31, 2015 |   |              | 2,240,920 |   |                         |   | 1.08 |   |

| The fair value of share based payments noted above was estimated using the Black-Scholes Option Pricing Model with the following assumptions. |
|-----------------------------------------------------------------------------------------------------------------------------------------------|
| Options granted                                                                                                                               | 190,000 |   | 25,000 |   | 90,000 |
| Grant date                                                                                                                                    | November 21,2013 |   | October 7,2015 |   | December 21,2015 |
| Risk-free interest rate                                                                                                                       | 0.95% |   | 0.53% |   | 0.53% |
| Expected dividend yield                                                                                                                       | 6.8% |   | 6.8% |   | 6.8% |
| Expected stock price volatility (based on historical volatility)                                                                              | 57.88% |   | 39.6% |   | 41.2% |
| Expected option life in years                                                                                                                 | 5 |   | 5 |   | 5 |
| Exercise price (Canadian $)                                                                                                                   | 0.72 |   | 0.80 |   | 0.74 |
| Share price at grant date (Canadian $)                                                                                                        | 0.72 |   | 0.79 |   | 0.74 |
| Fair value at grant date                                                                                                                      | 0.356 |   | 0.27 |   | 0.27 |
| Expected forfeiture rate                                                                                                                      | 0% |   | 0% |    | 0% |

----

| · | The value of the shares at the point that any loans provided to purchase the shares or fund advance dividends are paid off; |
|--------|-----------------------------------------------------------------------------------------------------------------------------|

| · | The value of any advance dividends paid to participants; |
|--------|----------------------------------------------------------|

| · | The value of any "trickle dividends", being the 20% entitlements, paid to participants while the loans to purchase the shares are outstanding. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------|

| Fair value of Blanket Mine                           | $45,065                                          |
|------------------------------------------------------|--------------------------------------------------|
| Expected volatility (based on historical volatility) | 65%                                              |
| Risk free rates                                      | USD swap curve with country specific adjustments |
| Country specific adjustment                          | 17.3%                                            |
| Dividend yield                                       | 14.8%                                            |
| Withholding tax                                      | 5% of dividends                                  |
| Interest on loans                                    | 10%                                              |

----

| 21 | Provisions |
|----|------------|

| Reconciliation of site restoration provision         |   |
|----------------------------------------------------------------|--------|
| Balance at January 1, 2013                                     | 1,022  |
| Foreign exchange movement                                      | (92)   |
| Unwinding of discount                                          | (1)    |
| Change in estimate during the year                             |   |
| - adjusted through profit or loss                         | 147    |
| - adjustment capitalised in Property, plant and equipment | 394    |
| Balance at December 31, 2013                                   | 1,470  |
|                                                           |   |
| Balance at January 1, 2014                                     | 1,470  |
| Foreign exchange movement                                      | (64)   |
| Unwinding of discount                                          | 33     |
| Change in estimate during the year                             |   |
| - adjusted through profit or loss                         | 29     |
| - adjustment capitalised in Property, plant and equipment | 1016   |
| Balance at December 31, 2014                                   | 2,484  |
|                                                           |   |
| Balance at January 1, 2015                                     | 2,484  |
| Foreign exchange movement                                 | (156)  |
| Unwinding of discount                                          | 43     |
| Change in estimate during the year                             |   |
| - adjusted through profit or loss                         | -      |
| - adjustment capitalised in Property, plant and equipment | 391    |
| Balance at December 31, 2015                                   | 2,762  |

----

| 21 | Provisions – (continued) |
|----|--------------------------------|

|                                                |   | December 31, 2015 |   | December 31, 2014 |   | January 1, 2014 |
|-----------------------------------------------------|--------|-------------------|--------|-------------------|--------|-----------------|
|                                                |   |              |   |              |   |            |
| Trade payables                                      |   | 1,257             |   | 866               |   | 959             |
| Audit fee                                           |   | 240               |   | 294               |   | 210             |
| Other payables and accrued expenses                 |   | 1,599             |   | 507               |   | 789             |
| Financial liabilities                               |   | 3,096             |   | 1,667             |   | 1,958           |
| VAT payable and other taxes                         |   | 329               |   | 357               |   | 331             |
| Production and management bonus accrual   |   | 1,792             |   | -                 |   | 1,031           |
| Other employee benefits                             |   | 114               |   | 102               |   | 163             |
| Leave pay                                           |   | 1,325             |   | 1,134             |   | 818             |
| Non-financial liabilities                           |   | 3,560             |   | 1,593             |   | 2,343           |
| Total                                               |   | 6,656             |   | 3,260             |   | 4,301           |

----

|                                                        | 2015    | 2014   | 2013    |   |
|-------------------------------------------------------------|---------|--------|---------|--------|
| Operating profit                                            | 8,495   | 12,068 | 9,237   |   |
| Adjustments for:                                            |    |   |    |   |
| Loss on scrapping of Property, plant and equipment          | 33      | 62     | -       |   |
| Unrealised foreign exchange gains on cash held              | (2,865) | (423)  | (1,624) |   |
| Site restoration                                            | -       | 29     | (147)   |   |
| Share-based payment expense                                 | 24      | -      | 66      |   |
| Depreciation                                                | 3,322   | 3,540  | 3,181   |   |
| Write off of inventory                                      | 46      | -      | 53      |   |
| Impairment                                                  | -       | 178    | 13,789  |   |
| Cash generated by operations before working capital changes | 9,055   | 15,454 | 24,555  |   |
| Inventories                                                 | 375     | (94)   | (875)   |   |
| Prepayments                                                 | (321)   | (46)   | (55)    |   |
| Trade and other receivables                                 | (1,472) | 566    | (1,865) |   |
| Trade and other payables                                    | 1,186   | (296)  | (1,327) |   |
|  Cash flows from operating activities                  | 8,823   | 15,584 | 20,433  |   |

| Carrying amount | December 31, 2015 |   | December 31, 2014 |   | January 1, 2014 |
|-----------------|-------------------|--------|-------------------|--------|-----------------|
|            |              |   |              |   |            |
| Canada          | -                 |   | 84                |   | -               |
| Zimbabwe        | 842               |   | 665               |   | 2,392           |
|            | 842               |   | 749               |   | 2,392           |

----

| Non-derivative financial liabilities | Carrying amount | 6 months or less |
|--------------------------------------|-----------------|------------------|
| December 31, 2015                    |            |             |
| Trade and other payables             | 3,096           | 3,096            |
| Bank overdraft                       | 1,688           | 1,688            |
|                                 | 4,784           | 4,784            |
|   December 31, 2014        | Carrying amount | 6 months or less |
| Trade and other payables             | 1,667           | 1,667            |
|                                 | 1,667           | 1,667            |

|  January 1, 2014                | Carrying amount | 6 months or less |
|--------------------------------------|-----------------|------------------|
| Non-derivative financial liabilities |            |             |
| Trade and other payables             | 1,958           | 1,958            |
| Bank overdraft                       | 1,679           | 1,679            |
|                                 | 3,637           | 3,637            |

| iii) | Currency risk |
|------|---------------|

----

|                        | December 31, 2015 | December 31, 2014 | January 1, 2014  |
|-----------------------------|-------------------|-------------------|-----------------------|
|                        |              |              |                  |
| Cash and cash equivalents   | 132               | 470               | 416                   |
| Trade and other receivables | 566               | 83                | 1                     |
| Trade and other payables    | 510               | 575               | 648                   |

|            | Average rate during the year | Spot rate |
|-----------------|------------------------------|-----------|
|            | 2015                         | 2014      | 2013 | December 31, 2015 | December 31, 2014 | January 1,2014 |
| (In US dollars) |                         |      |   |   |   |   |
| CAD 1           | 0.7823                       | 0.9057    | 0.9709 | 0.7210 | 0.8601 | 0.9349 |
| Rand (ZAR) 1    | 0.0784                       | 0.0923    | 0.1038 | 0.0644 | 0.0871 | 0.0967 |

----

|                      |   | 2015USD'000         |    |   | 2014USD'000         |   |   | 2013USD'000         |   |
|---------------------------|--------|---------------------|---------|--------|---------------------|--------|--------|---------------------|--------|
|                      |   | Functional currency |    |   | Functional currency |   |   | Functional currency |   |
|                      |   | ZAR                 |    |   | CAD                 |   |   | ZAR                 |   |   | CAD |   |   | ZAR |   |   | CAD |   |
| Cash and cash equivalents |   |                | 3,874   |   |                |   | 5,483  |                |   |   | 10,514 |   |   |   | 553 |   |   |   | 8,197 |   |   |   | 1,594 |   |
| Trade and other payables  |   |                | -       |   |                |   | -      |                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Intercompany balances*    |   |                | (27,650 | )      |                |   | 44,390 |                |   |   | (30,320 | ) |   |   | 48,484 |   |   |   | (31,079 | ) |   |   | 57,207 |   |
|                      |   |                | (23,776 | )      |                |   | 49,873 |                |   |   | (19,806 | ) |   |   | 49,037 |   |   |   | (22,882 | ) |   |   | 58,801 |   |

|                      |   | 2015USD'000         |   |   | 2014USD'000         |   |   | 2013USD'000         |   |
|---------------------------|--------|---------------------|--------|--------|---------------------|--------|--------|---------------------|--------|
|                      |   | Functional currency |   |   | Functional currency |   |   | Functional currency |   |
|                      |   | ZAR                 |   |   | CAD                 |   |   | ZAR                 |   |   | CAD |   |   | ZAR |   |   | CAD |   |
| Cash and cash equivalents |   |                | 194    |   |                |   | 274    |                |   |   | 526 |   |   |   | 28 |   |   |   | 410 |   |   |   | 80 |   |
| Trade and other payables  |   |                | -      |   |                |   | -      |                |   |   |   |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Intercompany balances*    |   |                | (1,382 | )      |                |   | 2,219  |                |   |   | (1,516 | ) |   |   | 2,424 |   |   |   | (1,554 | ) |   |   | 2,860 |   |
|                      |   |                |   |   |                |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| iv) | Interest rate risk |
|-----|--------------------|

----

|  | 24 | Financial instruments – (continued) |
|--|----|-------------------------------------------|

| v) | Gold price risk |
|----|-----------------|

|                                                    | 2015   | 2014   | 2013   |
|---------------------------------------------------------|--------|--------|--------|
|                                                    |   |   |   |
| $0.048 per qualifying share (2014: $0.054; 2013:$0.098) | 2,504  | 2,850  | 5,140  |

----

| · | the acquisition of more than 50% of the common shares; or |
|--------|-----------------------------------------------------------|

| · | the acquisition of right to exercise the majority of the voting rights of common shares; or |
|--------|---------------------------------------------------------------------------------------------|

| · | the acquisition of the right to appoint the majority of the board of directors; or |
|--------|------------------------------------------------------------------------------------|

| · | the acquisition of more than 50% of the assets; of |
|--------|----------------------------------------------------|

|                                | 2015  | 2014  | 2013  |
|-------------------------------------|-------|-------|-------|
| Key management salaries and bonuses | 2,452 | 1,781 | 1,482 |
| Share-based payments                | 24    | -     | 35    |
|                                | 2,476 | 1,781 | 1,517 |

----

|                                                                                                                                                            |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                      |   |   | Transactions during the year |
|                                                                                                                                                                      |   | Note | 2015 | 2014 | 2013 |
| Management contract fees, allowances and bonus paid or accrued to a company for management services provided by the Group's former President and Chief Executive Officer. |   | (i) | - | 850 | 715 |
| Rent for office premises paid to a company owned by members of the former Chief Executive Officer's family.                                                               |   | (ii) | 40 | 129 | 37 |
| Legal fees and disbursements                                                                                                                                              |   |   | - | - | 85 |
| Directors fees                                                                                                                                                            |   |   | 191 | 298 | 280 |

----

|                                                         |   | Country of incorporation |   | Legal    shareholding                                     |   |   |   Intercompany balances with Holding company |
|--------------------------------------------------------------|--------|--------------------------|--------|---------------------------------------------------------------------|--------|--------|--------------------------------------------------------|
|                                                         |   |                     |   | 2015                                                                | 2014   | 2013   |                                                   | 2015 | 2014 | 2013 |
| Subsidiaries of the Company                                  |   |                     |   |            % | %      | %      |                                                   |   |   |   |
| Caledonia Holdings Zimbabwe (Private) Limited                |   | Zimbabwe                 |   | 100                                                                 | 100    | 100    |                                                   | - | - | - |
| Caledonia Mining Services Limited                            |   | Zimbabwe                 |   | 100                                                                 | 100    | 100    |                                                   | - | - | - |
| Caledonia Kadola Limited (4)                                 |   | Zambia                   |   | -                                                                   | 100    | 100    |                                                   | - | - | - |
| Caledonia Mining (Zambia) Limited (4)                        |   | Zambia                   |   | -                                                                   | 100    | 100    |                                                   | - | (15,499) | (15,499) |
| Caledonia Nama Limited (4)                                   |   | Zambia                   |   | -                                                                   | 100    | 100    |                                                   | - | (12,435) | (6,419) |
| Caledonia Western Limited (4)                                |   | Zambia                   |   | -                                                                   | 100    | 100    |                                                   | - | - | - |
| Mulonga Mining Limited (4)                                   |   | Zambia                   |   | -                                                                   | 100    | 100    |                                                   | - | - | - |
| Eersteling Gold Mining Corporation Limited                   |   | South Africa             |   | 100                                                                 | 100    | 100    |                                                   | (12,585) | (12,575) | (12,509) |
| Fintona Investments Proprietary Limited                      |   | South Africa             |   | 100                                                                 | 100    | 100    |                                                   | (14,859) | (14,859) | (14,859) |
| Caledonia Mining South Africa Proprietary Limited            |   | South Africa             |   | 100                                                                 | 100    | 100    |                                                   | (3,806) | (3,806) | (5,839) |
| Greenstone Management Services Limited                       |   | United Kingdom           |   | 100                                                                 | 100    | 100    |                                                   | 7,846 | 7,846 | 1,850 |
| Maid O' Mist Proprietary Limited                             |   | South Africa             |   | 100                                                                 | 100    | 100    |                                                   | - | - | - |
| Mapochs Exploration Proprietary Limited                      |   | South Africa             |   | 100                                                                 | 100    | 100    |                                                   | - | - | - |
| Caledonia Holdings (Africa) Limited                          |   | Barbados                 |   | 100                                                                 | 100    | 100    |                                                   | - | - | - |
| Blanket (Barbados) Holdings Limited                          |   | Barbados                 |   | 100                                                                 | 100    | 100    |                                                   | - | - | - |
| Blanket Mine (1983) (Private) Limited(3)                     |   | Zimbabwe                 |   | (2)49                                                               | 49     | 49     |                                                   | - | - | - |
| Blanket Employee Trust Services (Private) Limited (BETS) (1) |   | Zimbabwe                 |   | -                                                                   | -      | -      |                                                   | - | - | - |

----

| 2015                         |   | Corporate |   |   | Zimbabwe |   |    | South Africa |   |   | Zambia  |   |   | Inter-group eliminations adjustments |   |   | Total  |   |
|------------------------------|--------|-----------|--------|--------|----------|--------|---------|--------------|--------|--------|---------|--------|--------|--------------------------------------|--------|--------|--------|--------|
|                         |   |      |   |   |     |   |    |         |   |   |    |   |   |                                 |   |   |   |   |
| External Revenue             |   |      | 9,497  |   |     |   | 48,978  |         |   |   | 17,016  |   |   |                                 | -      |   |   |   | (26,514 | ) |   |   | 48,977 |   |
| Royalties                    |   |      | -      |   |     |   | (2,455  | )            |   |   | -       |   |   |                                 | -      |   |   |   | - |   |   |   | (2,455 | ) |
| Production costs             |   |      | -      |   |     |   | (30,955 | )            |   |   | (12,174 | )      |   |                                 | -      |   |   |   | 13,110 |   |   |   | (30,019 | ) |
| Management fee               |   |      | -      |   |     |   | (4,140  | )            |   |   | 4,140   |   |   |                                 | -      |   |   |   | - |   |   |   | - |   |
| Share based payment expense  |   |      | (24    | )      |     |   | -       |         |   |   | -       |   |   |                                 | -      |   |   |   | - |   |   |   | (24 | ) |
| Other income                 |   |      | 9      |   |     |   | 55      |         |   |   | 46      |   |   |                                 | -      |   |   |   | - |   |   |   | 110 |   |
| Administrative expenses      |   |      | (5,802 | )      |     |   | (118    | )            |   |   | (8,135  | )      |   |                                 | (750   | )      |   |   | 7,183 |   |   |   | (7,622 | ) |
| Depreciation                 |   |      | -      |   |     |   | (3,559  | )            |   |   | (42     | )      |   |                                 | -      |   |   |   | 279 |   |   |   | (3,322 | ) |
| Finance income               |   |      | -      |   |     |   | -       |         |   |   | 1       |   |   |                                 | -      |   |   |   | - |   |   |   | 1 |   |
| Finance expense         |   |      | (344   | )      |     |   | (190    | )            |   |   | (2      | )      |   |                                 | -      |   |   |   | - |   |   |   | (536 | ) |
| Foreign exchange gain/(loss) |   |      | 431    |   |     |   | -       |         |   |   | 2,419   |   |   |                                 | -      |   |   |   | - |   |   |   | 2,850 |   |
| Profit before income tax     |   |      | 3,767  |   |     |   | 7,616   |         |   |   | 3,269   |   |   |                                 | (750   | )      |   |   | (5,942 | ) |   |   | 7,960 |   |
| Tax expense                  |   |      | 522    |   |     |   | (2,616  | )            |   |   | (276    | )      |   |                                 | -      |   |   |   | - |   |   |   | (2,370 | ) |
| Profit after income tax      |   |      | 4,289  |   |     |   | 5,000   |         |   |   | 2,993   |   |   |                                 | (750   | )      |   |   | (5,942 | ) |   |   | 5,590 |   |

----

| 29Operating Segments – (continued)   |   |      |    |   |
|--------------------------------------------|--------|-----------|---------|--------|
| 2015                                       |   | Corporate |    |   | Zimbabwe |   |   | South Africa |   |   | Zambia |   |   | Inter-group eliminations adjustments |   |   | Total |   |
|                                       |   |      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Geographic segment assets:            |   |      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current (excluding intercompany)           |   |      | 8,857   |   |   |   | 10,386 |   |   |   | 4,918 |   |   |   | 1 |   |   |   | (600 | ) |   |   | 23,562 |   |
| Non-current (excluding intercompany)       |   |      | 40      |   |   |   | 50,613 |   |   |   | 370 |   |   |   | - |   |   |   | (1,747 | ) |   |   | 49,276 |   |
| Additions to property, plant and equipment |   |      | -       |   |   |   | 18,385 |   |   |   | 143 |   |   |   | - |   |   |   | (335 | ) |   |   | 18,193 |   |
| Intercompany balances                      |   |      | 74,007  |   |   |   | 1,509 |   |   |   | 7,958 |   |   |   | - |   |   |   | (83,474 | ) |   |   | - |   |
|                                       |   |      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Geographic segment liabilities        |   |      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current (excluding intercompany)           |   |      | (433    | )      |   |   | (6,497 | ) |   |   | (1,469 | ) |   |   | - |   |   |   | - |   |   |   | (8,397 | ) |
| Non-current (excluding intercompany)       |   |      | -       |   |   |   | (13,621 | ) |   |   | (459 | ) |   |   | - |   |   |   | - |   |   |   | (14,080 | ) |
| Intercompany balances                      |   |      | (16,734 | )      |   |   | (3,507 | ) |   |   | (37,290 | ) |   |   | (25,943 | ) |   |   | 83,474 |   |   |   | - |   |

|   2014              |   | Corporate |   |   | Zimbabwe |   |    | South Africa |   |   | Zambia |   |   | Inter-group eliminations adjustments |   |   | Total  |   |
|-------------------------------|--------|-----------|--------|--------|----------|--------|---------|--------------|--------|--------|--------|--------|--------|--------------------------------------|--------|--------|--------|--------|
|                          |   |      |   |   |     |   |    |         |   |   |   |   |   |                                 |   |   |   |   |
| External Revenue              |   |      | 3,719  |   |     |   | 53,513  |         |   |   | 7,167  |   |   |                                 | -      |   |   |   | (10,886 | ) |   |   | 53,513 |   |
| Royalties                     |   |      | -      |   |     |   | (3,522  | )            |   |   | -      |   |   |                                 | -      |   |   |   | - |   |   |   | (3,522 | ) |
| Production costs              |   |      | -      |   |     |   | (28,536 | )            |   |   | (6,256 | )      |   |                                 | -      |   |   |   | 6,884 |   |   |   | (27,908 | ) |
| Management fee                |   |      | -      |   |     |   | (4,680  | )            |   |   | 4,680  |   |   |                                 |   |   |   |   | - |   |   |   |   |   |
| Other income/(expense)        |   |      | -      |   |     |   | 16      |         |   |   | 9      |   |   |                                 | -      |   |   |   | - |   |   |   | 25 |   |
| Administrative expenses       |   |      | (3,115 | )      |     |   | (436    | )            |   |   | (2,942 | )      |   |                                 | (894   | )      |   |   | - |   |   |   | (7,387 | ) |
| Depreciation                  |   |      | -      |   |     |   | (3,522  | )            |   |   | (18    | )      |   |                                 | -      |   |   |   | - |   |   |   | (3,540 | ) |
| Impairment                    |   |      | -      |   |     |   | (81     | )            |   |   | -      |   |   |                                 | (97    | )      |   |   | - |   |   |   | (178 | ) |
| Finance income                |   |      | 14     |   |     |   | -       |         |   |   | -      |   |   |                                 | -      |   |   |   | - |   |   |   | 14 |   |
| Finance expense          |   |      | -      |   |     |   | (154    | )            |   |   | -      |   |   |                                 | -      |   |   |   | - |   |   |   | (154 | ) |
| Foreign exchange gain/(loss)  |   |      | 49     |   |     |   | -       |         |   |   | 1,016  |   |   |                                 | -      |   |   |   | - |   |   |   | 1,065 |   |
| Profit before income tax      |   |      | 667    |   |     |   | 12,598  |         |   |   | 3,656  |   |   |                                 | (991   | )      |   |   | (4,002 | ) |   |   | 11,928 |   |
| Tax expense                   |   |      | (1,067 | )      |     |   | (3,594  | )            |   |   | (1,321 | )      |   |                                 | -      |   |   |   | - |   |   |   | (5,982 | ) |
| Profit after income tax  |   |      | (400   | )      |     |   | 9,004   |         |   |   | 2,335  |   |   |                                 | (991   | )      |   |   | (4,002 | ) |   |   | 5,946 |   |

----

|   2014                           |   | Corporate |    |   | Zimbabwe |   |    | South Africa |   |   | Zambia  |   |   | Inter-group eliminations adjustments |    |   | Total  |   |
|--------------------------------------------|--------|-----------|---------|--------|----------|--------|---------|--------------|--------|--------|---------|--------|--------|--------------------------------------|---------|--------|--------|--------|
| Geographic segment assets:            |   |      |    |   |     |   |    |         |   |   |    |   |   |                                 |    |   |   |   |
| Current                                    |   |      | 10,768  |   |     |   | 10,448  |         |   |   | 11,783  |   |   |                                 | 44      |   |   |   | (1,300 | ) |   |   | 31,743 |   |
| Non-current (excluding intercompany)       |   |      | 48      |   |     |   | 35,818  |         |   |   | 306     |   |   |                                 | -       |   |   |   | (1,436 | ) |   |   | 34,736 |   |
| Additions to property, plant and equipment |   |      | -       |   |     |   | 7,022   |         |   |   | 47      |   |   |                                 | 97      |   |   |   | - |   |   |   | 7,166 |   |
| Intercompany balances                      |   |      | 101,920 |   |     |   | 1,503   |         |   |   | 29,060  |   |   |                                 | -       |   |   |   | (132,483 | ) |   |   | - |   |
|                                       |   |      |    |   |     |   |    |         |   |   |    |   |   |                                 |    |   |   |   |   |   |   |   |   |   |
| Geographic segment liabilities        |   |      |    |   |     |   |    |         |   |   |    |   |   |                                 |    |   |   |   |   |   |   |   |   |   |
|  Current                         |   |      | (994    | )      |     |   | (2,412  | )            |   |   | (1,566  | )      |   |                                 | -       |   |   |   | - |   |   |   | (4,972 | ) |
| Non-current (excluding intercompany)       |   |      | -       |   |     |   | (10,571 | )            |   |   | (593    | )      |   |                                 | -       |   |   |   | - |   |   |   | (11,164 | ) |
| Intercompany balances                      |   |      | (33,955 | )      |     |   | (902    | )            |   |   | (72,406 | )      |   |                                 | (25,220 | )      |   |   | 132,438 |   |   |   | - |   |

|   2013              |   | Corporate |   |   | Zimbabwe |   |    | South Africa |   |   | Zambia |   |   | Inter-group eliminations adjustments |    |   | Total  |   |
|-------------------------------|--------|-----------|--------|--------|----------|--------|---------|--------------|--------|--------|--------|--------|--------|--------------------------------------|---------|--------|--------|--------|
|                          |   |      |   |   |     |   |    |         |   |   |   |   |   |                                 |    |   |   |   |
| External Revenue              |   |      | -      |   |     |   | 63,217  |         |   |   | 10,309 |   |   |                                 | -       |   |   |   | (10,309 | ) |   |   | 63,217 |   |
| Royalty                       |   |      | -      |   |     |   | (4,412  | )            |   |   | -      |   |   |                                 | -       |   |   |   | - |   |   |   | (4,412 | ) |
| Production costs              |   |      | -      |   |     |   | (27,748 | )            |   |   | (9,465 | )      |   |                                 |    |   |   |   | 10,599 |   |   |   | (26,614 | ) |
| Management fee                |   |      | -      |   |     |   | (4,680  | )            |   |   | 4,680  |   |   |                                 | -       |   |   |   | - |   |   |   | - |   |
| Other income/(expense)        |   |      | 5,602  |   |     |   | (5,602  | )            |   |   | -      |   |   |                                 | -       |   |   |   | - |   |   |   | - |   |
| Administrative expenses       |   |      | (2,788 | )      |     |   | (2,311  | )            |   |   | (2,237 | )      |   |                                 | -       |   |   |   | 210 |   |   |   | (7,546 | ) |
| Share-based payment expenses  |   |      | (66    | )      |     |   | -       |         |   |   | -      |   |   |                                 | -       |   |   |   | - |   |   |   | (66 | ) |
| Depreciation                  |   |      | -      |   |     |   | (3,398  | )            |   |   | (15    | )      |   |                                 | -       |   |   |   | 223 |   |   |   | (3,181 | ) |
| Impairment                    |   |      | -      |   |     |   | (88     | )            |   |   | (387   | )      |   |                                 | (13,314 | )      |   |   | - |   |   |   | (13,789 | ) |
| Finance income                |   |      | 23     |   |     |   | -       |         |   |   | -      |   |   |                                 | -       |   |   |   | - |   |   |   | 23 |   |
| Finance expense          |   |      | -      |   |     |   | (128    | )            |   |   | -      |   |   |                                 | -       |   |   |   | - |   |   |   | (128 | ) |
| Foreign exchange gain/(loss)  |   |      | 108    |   |     |   | 1       |         |   |   | 2,268  |   |   |                                 | -       |   |   |   | (749 | ) |   |   | 1,628 |   |
| Profit before income tax      |   |      | 2,879  |   |     |   | 14,851  |         |   |   | 5,153  |   |   |                                 | (13,314 | )      |   |   | (437 | ) |   |   | 9,132 |   |
| Tax expense                   |   |      | (1,788 | )      |     |   | (6,293  | )            |   |   | (1,528 | )      |   |                                 | -       |   |   |   | - |   |   |   | (9,609 | ) |
| Profit after income tax  |   |      | 1,091  |   |     |   | 8,558   |         |   |   | 3,625  |   |   |                                 | (13,314 | )      |   |   | (437 | ) |   |   | (477 | ) |

----

|   2013                             |   | Corporate |   |   | Zimbabwe |   |   | South Africa |   |   | Zambia |   |   | Inter-group eliminations adjustments |   |   | Total  |   |
|----------------------------------------------|--------|-----------|--------|--------|----------|--------|--------|--------------|--------|--------|--------|--------|--------|--------------------------------------|--------|--------|--------|--------|
| Geographic segment assets:              |   |      |   |   |     |   |   |         |   |   |   |   |   |                                 |   |
| Current                                      |   |      | 14,084 |   |     |   | 9,909  |         |   |   | 9,766  |   |   |                                 | 41     |   |   |   | - |   |   |   | 33,800 |   |
| Non-Current (excluding intercompany)         |   |      | 51     |   |     |   | 32,573 |         |   |   | 309    |   |   |                                 | -      |   |   |   | (1,661 | ) |   |   | 31,272 |   |
| Expenditure on property, plant and equipment |   |      | -      |   |     |   | 9,185  |         |   |   | 34     |   |   |                                 | 2,560  |   |   |   | (383 | ) |   |   | 11,396 |   |
| Intercompany balances                        |   |      | 56,931 |   |     |   | 1,658  |         |   |   | 5,878  |   |   |                                 | -      |   |   |   | (64,467 | ) |   |   | - |   |

| Geographic segment liabilities  |   |   |   |   |   |   |   |   |   |   |    |   |   |   |    |   |   |   |
|--------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|
|  Current                   |   |   | (150   | )      |   |   | (5,358 | )      |   |   | (1529   | )      |   |   | (7      | )      |   |   | - |   |   |   | (7,044 | ) |
| Non-current (excluding intercompany) |   |   |   |   |   |   | (8,751 | )      |   |   | (686    | )      |   |   | -       |   |   |   | - |   |   |   | (9,437 | ) |
| Intercompany balances                |   |   | (3,367 | )      |   |   | (732   | )      |   |   | (36,110 | )      |   |   | (24,258 | )      |   |   | 64,467 |   |   |   | - |   |

----

| 30 | Non-controlling interests |
|----|---------------------------|

| Blanket Mine (1983) (Private) Limited NCI % - 16.2% |   |   |    |   |
|-----------------------------------------------------|--------|--------|---------|--------|
|                                                |   | 2015   |    |   | 2014 |   |   | 2013 |   |
|                                                |   |   |    |   |   |   |   |   |   |
| Current assets                                      |   |   | 10,386  |   |   |   | 10,448 |   |   |   | 9,909 |   |
| Non-current assets                                  |   |   | 50,613  |   |   |   | 37,322 |   |   |   | 32,573 |   |
| Current liabilities                                 |   |   | (6,497  | )      |   |   | (2,412 | ) |   |   | (5,358 | ) |
| Non-current liabilities                             |   |   | (13,621 | )      |   |   | (10,571 | ) |   |   | (8,751 | ) |
| Net assets                                          |   |   | 40,881  |   |   |   | (34,787 | ) |   |   | (28,373 | ) |
|                                                |   |   |    |   |   |   |   |   |   |   |   |   |
| Carrying amount of NCI                              |   |   | 1,504   |   |   |   | 693 |   |   |   | (48 | ) |
|                                                |   |   |    |   |   |   |   |   |   |   |   |   |
| Revenue                                             |   |   | 48,977  |   |   |   | 53,515 |   |   |   | 63,217 |   |
| Profit                                              |   |   | 5,000   |   |   |   | 8,860 |   |   |   | 15,372 |   |
| Total comprehensive income                          |   |   | 5,000   |   |   |   | 8,860 |   |   |   | 15,372 |   |
|                                                |   |   |    |   |   |   |   |   |   |   |   |   |
| Profit allocated to NCI                             |   |   | 811     |   |   |   | 1,511 |   |   |   | 2,490 |   |
| Dividend paid to NCI                                |   |   | -       |   |   |   | 770 |   |   |   | 731 |   |

| ii) | Recapitalisation of Blanket Mine (1983) (Private) Limited ("Blanket") |
|-----|-----------------------------------------------------------------------|

| · | Caledonia Holdings Zimbabwe (Private) Limited subscribed for 4,755,556 Founder shares with a par value of $0.012 at $1.051; |
|--------|-----------------------------------------------------------------------------------------------------------------------------|

| · | A-class shareholders (NIEEF, BETS and Fremiro) subscribed for 3,979,140 A-class shares with a par value of $0.005 at $0.57; and |
|--------|---------------------------------------------------------------------------------------------------------------------------------|

| · | GCSOT subscribed for 970,522 B class shares with a par value of $0.005 for a nominal amount of $4.8 |
|--------|-----------------------------------------------------------------------------------------------------|

----

| iii) | Re-domicile to Jersey |
|------|-----------------------|

| · | the Company has no commercial operations in Canada, hence there is no reason for it to be domiciled in Canada and subject to Canadian taxes and the compliance costs associated with being a Canadian tax entity; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Jersey is more conveniently located in relation to the Company's operations in Southern Africa and the majority of its shareholder base which ranges from continental Europe to South Africa and North America; and |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Canadian withholding tax, which is currently applicable to dividends paid to the Company's shareholders outside Canada, will be eliminated. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------|

----

| iv) | Share based payment awards |
|-----|----------------------------|

| v) | Dividend Policy |
|----|-----------------|

----

|   | CALEDONIA MINING CORPORATION  |
|--------|------------------------------------|
|   | By:                                | /s/ Steven Curtis |
|   |                               | Steven CurtisChief Executive Officer  |

----