Homeland Energy Group Ltd.
TSX : HEG

Homeland Energy Group Ltd.

March 18, 2010 16:28 ET

Homeland Energy Group Announces Possible Delay in Filing of Audited Financial Statements

TORONTO, CANADA--(Marketwire - March 18, 2010) - Homeland Energy Group Ltd. (TSX:HEG) ("Homeland" or the "Company") wishes to advise that there may be a delay in the filing of its audited financial statements, MD&A and AIF for the year ended December 31, 2009 (the "Financial Disclosure") which would otherwise be due to be filed on or before March 31, 2010 pursuant to relevant securities laws. In response to the filing of its preliminary prospectus (announced on February 9, 2010), the Ontario Securities Commission (the "OSC") raised a question concerning the accounting treatment of the Company's investments in Madic Operation (Pty) Ltd. and Numin (Pty) Ltd. (the "Entities"). Upon further review by the Company and its auditors, it has been determined that these entities should be treated as variable interest entities and consolidated into the Company's financial statements. However, there have been delays in obtaining the required information from these two entities and the Company was concerned that there might be additional delays in obtaining all of the information necessary to complete the consolidation.

The Company wishes to make shareholders aware that the change in the accounting treatment of the Entities will have an impact on the Company's historical financial disclosure. The effect of consolidating the Entities is expected to include the following changes to the 2008 financial statements of the Company: elimination of the long-term loans due from the Entities and related interest income; increase in property and equipment, accounts payable, operating expenses and net loss.

The Company intends to work diligently to file the Financial Disclosure by March 31, 2010, but to be prudent in the circumstances, the Company decided to apply for a Management Cease Trade Order ("MCTO") under National Policy 12-203 (the "Policy") pending the filing of the Financial Disclosure on SEDAR. The Company is confident that if the Financial Disclosure cannot be made by March 31, 2010, it will be filed by no later than April 23, 2010. The granting of an MCTO is at the discretion of the Ontario Securities Commission and there can be no guarantee that an MCTO will be granted.

If an MCTO is granted under the Policy, it will be imposed against some or all of the persons who have been directors, officers or insiders of the Company instead of a cease trade order being imposed against all securities of the Company. An MCTO would not generally affect the ability of persons who have not been directors, officers or insiders of the Company to trade the securities of the Company pending the filing of the Financial Disclosure on SEDAR.

If the MCTO is granted, the Company intends to satisfy the provisions of the Alternate Information Guidelines as set out in the Policy for as long as it remains in default, including the issuance of bi-weekly default status reports, each of which will be issued in the form of a press release.

Homeland Energy Group Ltd. (TSX:HEG) is a coal producer with operations in the Witbank area of South Africa. The company also has a large-scale development property in South Africa and exploration interests in Southern Africa. Homeland will continue to seek out interests in additional coal projects in South Africa and neighbouring countries as well as internationally. Homeland is a shareholder in Homeland Uranium Inc., a Canadian uranium exploration company focused on projects in Niger and the United States. Homeland Energy Group Ltd. is currently traded on the Toronto Stock Exchange under the symbol "HEG" with 302,115,756 common shares issued and outstanding. www.homelandenergygroup.com.

Please visit www.homelandenergygroup.com

Contact Information