Homeland Energy Group Ltd.

Homeland Energy Group Ltd.

January 14, 2008 06:00 ET

Homeland Energy Tenders Kendal Mining Contract in South Africa

TORTOLA, BRITISH VIRGIN ISLANDS--(Marketwire - Jan. 14, 2008) - Homeland Energy Corporation's South African subsidiary recently tendered the mining contract for its Kendal coal mining project in South Africa. The Kendal coal mining project is located approximately 100km east of Johannesburg, near the Kendal Power Station in Mpumalanga Province, and represents a significant project in Homeland Energy's portfolio of assets. Homeland Energy owns 74% of the Kendal project, with the remaining 26% owned by local strategic partners in South Africa.

A dozen mining contractors attended the tendering session, at which the scope of work was defined as the mining of a minimum of 150,000 run-of-mine tonnes of coal per month up to the point of delivery to the crushing and screening plants. The tender includes the removal of all material above the coal seams, intermediate coal partings between significant seams and subsequent rehabilitation of the mined out area, subject to the standards set by Homeland Energy. The initial duration of the contract is three years, at which time the contract may be re-negotiated or re-tendered. Tender documents are to be returned to Homeland Energy by January 25, 2008.

Homeland anticipates a two- to three-week review and evaluation process and expects to award this mining contract as soon as possible after the licencing and administrative processes are complete. Commencement of mining is subject to issuance of the final mining licence.

The Kendal mining contract tender process is being overseen by Venn and Milford (V&M), a well-respected consulting firm known for their project management and engineering work with coal mines in South Africa. "That V&M has taken on the Kendal mining project as a client is a testament to the work and professionalism of our South African team," said Stephen Coates, President and CEO. "We expect that the Kendal coal mine will be ready for production mid-way through the second quarter of this year, pending the granting of a mining licence."

The Kendal coal mining project, as well as other Homeland Energy exploration and development programs, are carried out under the supervision of Mr. Michael Nell, the Managing Director of Homeland Mining and Energy SA (Pty). Mr. Nell is a Qualified Person, as defined by Canadian National Instrument 43-101, with more than 25 years of experience in the coal exploration, development and mining industry. Mr. Nell is responsible for the geoscientific and technical disclosure contained in the Company's technical documents.

About Homeland Energy Corp.

Homeland Energy Corp. is a private company focused on energy exploration and development in Southern Africa. Homeland owns three advanced development/pre-development coal projects in South Africa and a number of early-stage exploration properties in the provinces of Mpumalanga and Kwa-Zulu Natal. The Company is currently negotiating to acquire interests in a number of additional coal properties in eastern South Africa and neighbouring countries. Homeland is also a significant shareholder in Homeland Uranium Inc., a Canadian uranium exploration and development company focused on projects in Niger and the United States.

Homeland Energy Corp. is currently in the process of a reverse take over of TSX Venture Exchange listed capital pool company, Chrysalis Capital IV Corporation (TSX VENTURE:CIV.P).

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