Caledonia Mining : Company Presentation European Gold Forum

April 2020

Disclaimer

This presentation does not constitute, or form part of, any offer to sell or issue or any solicitation of any offer to purchase or subscribe for,

any shares in Caledonia Mining Corporation Plc ("Caledonia"), nor shall it (or any part of it) or the fact of its distribution, form the basis of, or

be relied on in connection with, or act as an inducement to enter into any contract or agreement thereto.

Certain forward-looking statements may be contained in the presentation which include, without limitation, expectations regarding metal prices, estimates of production, operating expenditure, capital expenditure and projections regarding the completion of capital projects as well as the financial position of the Company. Although Caledonia believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be accurate. Accordingly, results could differ from those projected as a result of, among other factors, changes in economic and market conditions, changes in the regulatory environment and other business and operational risks.

Accordingly, neither Caledonia, nor any of its directors, officers, employees, advisers, associated persons or subsidiary undertakings shall be liable for any direct, indirect or consequential loss or damage suffered by any person as a result of relying upon this presentation or any future communications in connection with this presentation and any such liabilities are expressly disclaimed.

The projected gold production figures in this document for 2021 and 2022 are explained in the management discussion and analysis ("MD&A") dated March 20, 2019. Refer to technical report dated February 13, 2018 entitled "National Instrument 43-101 Technical Report on the Blanket Mine, Gwanda Area, Zimbabwe (Updated February 2018), a copy of which was filed by the Company on SEDAR on March 2, 2018 for the key assumptions, parameters, and methods used to estimate the mineral resources and mineral reserves from which such planned gold production is to be derived and risks that could materially affect the potential development of the mineral resources or mineral reserves. Refer to Resource Upgrade at the Blanket Mine, Zimbabwe as announced by the Company on September 20, 2018 for the resources as stated in this document. Mr Paul Matthews, the Company's qualified person and Group Mineral Resource Manager, supervised the preparation of the technical information in the technical report, and also supervised the preparation of the technical information supporting the production figures and the resources.

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1. Company Overview: building a solid foundation
2. Central Shaft: near-term,low-risk growth
3. Attractive new opportunities in Zimbabwe

Company Overview

Building a solid foundation

4

Caledonia Mining : Overview

Caledonia:

Profitable gold producer

Blanket Gold Mine:

An established mine with

substantial planned

production growth and

cost reduction

Dividend

• Established, profitable gold producer, now expanding production from the Blanket Mine in the Gwanda Greenstone Belt, Zimbabwe
• Jersey domiciled company; listed on NYSE MKT, TSX and AIM
• US$12.5m in cash at 30 March 2020
• P/E of 8.3x on adjusted 2019 earnings (IFRS: 3.1x)

		Production (oz)	AISC ($/oz)
2018	Actual	54,512	$802/oz
2019	Actual	55,182	$856/oz
2020	Target	53,000 to 56,000	n/a
2021	Target	75,000	$700-$800/oz*
2022	Target	80,000	$700-$800/oz*

• • M&I Resources of 805koz at 3.72g/t, Inferred resources of 963koz at 4.52g/t
  • Fully funded investment program supporting a 14-year life of mine
  • Significant on-mine and regional exploration upside
• Prior to the uncertainty associated with COVID-19 Caledonia paid a dividend of 7.5 US cents per quarter. Dividends due to be paid in April 2020 are currently under review pending greater clarity regarding the impact of the pandemic

• 2021 target AISC is C3-On-mine cost per the Technical Report published in Feb 2018 after adjustment for head office expenses and removal of intercompany margin. No account taken of export incentive credits or potential savings arising from increased efficiency of the central shaft

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Building a solid track record

Production growth, good cost control and capital investment

Caledonia Mining has a track record of rising production and declining unit operating costs. This has delivered strong

operating cash flow to support significant capital investment

	2015	2016	2017	2018	2019	CAGR
Revenue ($k)	48,977	61,992	69,762	68,399	75,826	12%
Gold Production (oz)	42,802	50,351	56,133	54,511	55,182	7%
Operating Cash Flow ($k)	6,869	23,011	24,512	17,667	18,060	27%
Capital Investment ($k)	16,567	19,882	21,639	20,192	20,024	-
Cash ($k)	10,880	14,335	12,756	11,187	8,893	-
Return on Shareholders Funds (%)	10%	15%	15%	15%	39%1	-
Adjusted EPS (USc/share)	44.5	98.6	135.4	131.5	144	36%
1 - ROCE excluding FX gain is approximately 21% in 2019

6

Recent Positive News Flow

A series of favourable events as Caledonia delivers its strategy

July 24, 2019	Completion of Shaft Sinking at Central Shaft Project
October 16, 2019	Stabilization of Electricity Supply Situation in Zimbabwe
January 3, 2020	Increase of Quarterly Dividend by 9.1%
January 13, 2020	Achievement of Record Production in Q4 2019
January 21, 2020	Completion of transaction to increase shareholding in Blanket to 64%
January 30, 2020	Announcement of Increased Earnings Guidance for 2019
April 9, 2020	Strong Q1 Production performance ahead of target for 2020

Recent announcements highlighting high levels of business resilience in the face of the current COVID-19 Pandemic

leave Caledonia well placed to weather business interruptions that may be forthcoming

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Capital Structure & Financials

	Relative Performance
	400
	350
to 100	300
250
rebased	200
performance	150
50
	100
Relative	2012	2013	2014	2015	2016		2017	2018	2019	2020
	0				CMCL share price plus divs				GDXJ rebased to 100
	Summary P&L	FY	FY			FY	FY	FY
	($'m except /share data)	2015	2016	2017	2018	2019
	Revenues		49.0	62.0	69.8	68.4	75.8
	EBITDA**		8.9	19.7	24.2	19.2	29.9
	Profit after Tax		5.6	11.1	11.9	13.8	50.4
	EPS (USc)***		45	79.5	86.5	98.9	382
	EPS - adj (USc)***	44	98.6			135	132	144
	** EBITDA is before Other Income
	*** EPS numbers are after an effective 1 for 5 share consolidation on the 26th of
	June 2017

Capital Structure
Shares in issue (m) *	11.5
Options (m)	0.038
Cash (30 Mar 2020)	$12.6m
Net Assets (31 Dec 2019)	$125m
Listing and Trading
Share price (15th Apr 2020)	$12.00
Market capitalisation (15th Apr 2020)	$137m
52 week low/high (US$)	5.29 - 12.00
12M Avg. daily liquidity (shares/day)	23,000
Shareholders	%
Management and directors	4.2
Allan Gray (South African Institution)	18.0
Sales Promotion Services	7.4
Fremiro Investments	6.3

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Resources

Increased exploration expenditure bears fruit

Consistent resource replacement despite growing production (250koz mined since 2011)

Contained Ounces (koz)

2,000

1,800

1,600

1,400

1,200

1,000

800

600

400

200

0

963

													887
												623
408		390						550	419
398			462
													353	425
62	56	55								267	362
		55		87
172		223
193			157
		144	128
								113	246	250
296	263	252			262	214	194	186	115	130
2010	2011	2012	2013	2014	2015	2016	2017	2018
				Proven			Probable		Indicated		Inferred

• A discovery cost of approximately $4.40 per ounce of gold since 2013
• Investment in infrastructure at depth will enable continued exploration drilling and resource delineation
• As at September 2018, Resource grade is well above mined head grade: M&I grade of 3.72g/t; Inferred grade of 4.52g/t; 2019 head grade of approximately 3.3g/t

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Dividend

A long-standing commitment to paying a dividend

Due to the uncertain business environment associated with the COVID-19 Pandemic, the board of directors has decided to defer its approval of the declaration of the second quarterly dividend of 2020. The board will keep this decision under constant review as it monitors prevailing market conditions.

• Caledonia has paid dividends since 2012
• • Initial dividend of 5 Canadian cents paid Feb 2013 associated with share consolidation
  • Annual dividend of 5 Canadian cents for 2012 paid in April 2013
  • Quarterly dividends commenced in Jan 2014 at 1.5 Canadian cents per quarter
  • Jan 2016: dividends were denominated in US dollars at 1.125 US cents per quarter
  • April 2016: Caledonia redomiciles from Canada to Jersey; dividends no longer incur Canadian withholding tax resulting in an effective increase for UK shareholders
  • Oct 2016: quarterly dividend increased to 1.375 cents
  • July 2017: quarterly dividend increased to 6.875 US cents to reflect 1 for 5 share consolidation
  • Jan 2020: quarterly dividend increased to 7.5 cents

Cumulative Dividend Distributions of $2.27 per share since 2012

	2.5								0.25
($/share)	2								0.2
1.5								0.15
Dividend
1								9% 0.1
Cumulative				22%	
	0.5								0.05
	0									0
	2013	2014	2015	2016	2017	2018	2019	2020
			Annual Dividends	Quarterly Dividends paid in CAD$			Quarterly Dividends	paid in US$

Central Shaft:

Near-term growth

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Investing in growth to 80koz/year from 2022

Constructing a new mine below the current workings (2015 to 2020)

6m diameter, 4-compartment shaft

from surface to 1,200m.

Scheduled for commissioning late 2020

Shaft sinking completed in July 2019;

currently shaft equipping

Mining and exploration access below 750m; improve operational efficiency; secure mine life to 2034

$63m invested since Jan 2015 fully

funded from internal cash flows

Central Shaft will result in a major improvement in production, costs and flexibility

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New Central Shaft drives development of sub-750m zones

Constructing a new mine below the current workings

Central Shaft		No. 4 Shaft
		Jethro Shaft

22
Level
		No. 6 Winze
(750m)

Plan illustrative and not to scale

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New infrastructure is transformational for the Blanket Mine

Improves haulage and worker logistics

Sinking completed mid 2019, currently in a 12-month equipping phase

Commissioning and ramp-up expected in H2 2020

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Strong free cash flows expected from 2020 onwards

Declining capex and increasing cash generation

45			Historic Data		@ Budget $1,600/oz
40
35
30
			9

M&I Resources only as

per NI 43-101

Technical Report

• Production post 2022 is expected to come from a combination of Measured, Indicated and Inferred Resources.

US$m

25
20
15					31
10	23	22		20	22
		19	20
	18	18	18	18
16
5

29 30 *

37 38

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• Existing Inferred Resources - 963k ounces
  at a grade of 4.5g/t
• Blanket has an operating track record 112 years, historic inferred conversion rate have been good

*

0

Cash Flow

Capital

Cash Flow

Capital

Cash Flow

Capital

Cash Flow

Capital

Cash Flow

Capital

Cash Flow

Capital

2015

2016

2017

2018

2019

2020

Actual

Actual

Actual

Actual

Actual

Est

8

8

7

4

2

Cash Flow

Capital

Cash Flow

Capital

Cash Flow

Capital

Cash Flow

Capital

Cash Flow

Capital

Cash Flow

Capital

Cash Flow

Capital

Cash Flow

Capital

Cash Flow

Capital

Cash Flow

Capital

Cash Flow

Capital

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

Est

Est

Est

Est

Est

Est

Est

Est

Est

Est

Est

Central Shaft Capex				Operating Cash Flow

• Operating cash flow and capital expenditure forecasts for Blanket Mine are extracted from the technical report dated 13 February 2018 entitled "National Instrument 43-101 Technical Report on the Blanket Mine,

	Gwanda Area, Zimbabwe (Updated February 2018), a copy of which was filed by the Company on SEDAR on March 2, 2018 using a gold price of $1,214 per ounce. These forecasts are for Blanket Mine and
	exclude Caledonia's G&A costs, inter-company adjustments and the export credit incentive for Zimbabwean gold producers
•	Cash flow forecasts in 2023 and 2024 include only production from M&I resources as per National Instrument 43-101 standards. Management anticipate supplementing production from inferred resources as
*	these resources are delineated with further exploration work.	15

Attractive new opportunities

in Zimbabwe

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The Zimbabwe Opportunity

World-class gold potential: under-explored and under-capitalized

Historic & current 1Moz+ producers		Significant regional potential

• Zimbabwe has historically produced over 45 million ounces of gold
• Prior to 2000, Zimbabwe produced more gold than Mali, Tanzania, Burkina Faso and Guinea
• Several prolific gold belts with potential for further multi million-ounce discoveries

Harare

Production: >4Moz

Existing Resources: approx. 1.9Moz

Average Grade: approximately 3g/t

Gweru

Production: >15Moz

Existing Resources: approx. 1.9Moz

Average Grade: approximately 3g/t

Bulawayo

Production: >2.5Moz

Existing Resources: approx. 6.5Moz

Average Grade: 2.5g/t - 5g/t

Gwanda Greenstone Belt - Including Blanket Mine

Production: >2.5Moz

Existing Resources: approx. 2.7Moz

Average Grade: 3.5g/t - 5g/t

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The Zimbabwe Opportunity

Evaluation Criteria

• New investment opportunities in Zimbabwe where surplus cash arising from Central Shaft could be deployed
• Brownfield projects
• • modest initial acquisition cost
  • modest initial resource base
  • further investment over 2-3 years with the objective of identifying a significant compliant resource

base

• • projects may have potential for modest near-term production e.g. from shallow oxide material and/or re-treating tailings/dumps
• Strict evaluation criteria for new projects:
• • scale: minimum target resource 1Moz; minimum target production of 50,000 ounces per annum
  • must enhance NPV per share and, eventually, dividend per share
• Caledonia does not intend to chase low-margin production which dilute shareholder value
• Long term objective: to identify sufficient resources to support a mid-tier gold, Zimbabwe-focussed gold producer

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Zimbabwe

Challenging but grounds for optimism

• Government has a commercial and pragmatic approach with several encouraging policy measures
• Genuine attempts to stimulate investment e.g. the removal of indigenisation requirement
• Government is reducing its spending, increasing its tax base and addressing its offshore debts
• • Modest cuts to domestic spending and increased taxes has resulted in an $800m Budget Surplus in H1 2019
  • • Proposed repeal the of the Public Order and Security Act (POSA) and Access to Information and Protection of Privacy Act (AIPPA), which are the major obstacles to a normalisation of relations with the USA
    • Two factors are of critical importance to create a conducive investment and operating environment
    • • Re-introductionof Zimbabwe dollar in February 2019 allows local inflation to be absorbed
      • Continued access to US$ to make payments out of Zimbabwe

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Investment Case - Summary

14 years of high margin operations with upside potential

• A strong track record and robust operator
• • highly profitable and cash generative
  • strong management team: proven track record and excellent in-country relations
• Substantial, near-term,fully-funded production growth
• • A 6-year investment programme is now substantially de- risked and very close to completion
  • 45% production growth planned
  • Increasing cash generation expected from 2020: higher production; lower costs; reduced capex
• Attractive dividend yield with scope for further increases
• • One of the highest yields in the gold industry
  • A historic commitment to dividends
  • Increased cash flow could support further dividend increases
• Exciting new growth opportunities
• • Zimbabwe is a highly prospective and under-explored gold region
  • Caledonia is uniquely positioned: a strong local presence

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Contacts

Website:www.caledoniamining.com

Share Codes: NYSE MKT and AIM - CMCL

TSX - CAL

Caledonia Contacts:

Mark Learmonth, CFO

Tel: [phone]

Email:[e-mail]

Maurice Mason, VP Corporate Development & Investor Relations

Tel: [phone]

Email:[e-mail]

Investment Research
WH Ireland	www.whirelandplc.com
Cantor Fitzgerald	www.cantor.com

North America IR (3ppb LLC) : Patrick Chidley, Paul Durham

Tel : [phone]

European IR: Swiss Resource Capital Jochen Staiger

Tel: [phone]

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