<codeBase> element in machine.config

I am trying to redirect a dependant assembly using the following in my machine.config file

<assemblyBinding xmlns="urn:schemas-microsoft-com:asm.v1"><dependentAssembly><assemblyIdentity name="Lib0" publicKeyToken="e3dc26dade2d75c8" /><codeBase version="1.1.1.1" href="file:///C:/Save/Code/C#/Test Folder/VersionRedirectTest/Lib0/bin/Release/Lib0.dll" /></dependentAssembly></assemblyBinding

Lib0 is strong named and the assembly version is set to "1.1.1.1", my test app (App1.exe) references the DLL and tries to call a function of a class in Lib0 but the framework fails to find Lib0.dll. The MSDN documentation says this is supposed to work both in machine.config and application configuration files. I have tested the same exact XML in my App1.exe.config and it finds the DLL fine. Why doesn't it work for machine.config

Thank you
Marcin Polewski