Homeland Precious Metals Corp.
OTC Bulletin Board : HPMEF

Homeland Precious Metals Corp.

January 29, 2007 19:05 ET

Homeland Precious Metals Corp. Signs Agreement With Newmont

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 29, 2007) - Homeland Precious Metals Corp. (OTCBB:HPMEF) is pleased to announce that, through its wholly owned Nevada subsidiary, Homeland Exploration, Inc., it has signed a definitive agreement with Newmont USA Limited, a subsidiary of Newmont Mining Corporation ("Newmont"), for the previously announced Water Canyon Project ("Water Canyon").

The agreement, which will become effective February 1, 2007, will see Homeland spending $2.7 million over a five-year period for the rights to explore and develop Water Canyon for gold and other minerals. The agreement also allows Newmont to participate as a joint venture partner in the project through an earn-in process. By spending up to 350% of what Homeland has spent on the project as of the date when Newmont elects to become involved, Newmont can earn up to a 70% interest in the project.

Located immediately adjacent to Newmont's Mule Canyon Mine Complex, the Water Canyon property consists of approximately 2,460 acres (approximately 4 sq. miles) which sits along strike of the Mule Canyon Complex. Situated in north central Nevada, Water Canyon lies within the world renowned Battle Mountain-Eureka Trend and Northern Nevada Rift. This area has seen prolific precious metal production since the early 1900's, and large-scale precious metal production continues to this day. The adjacent Mule Canyon Complex produced approx 0.5 million ounces of gold from six open pits over a 7 year period.

Past results from cursory exploration by other companies are what compelled Homeland to enter into the agreement with Newmont for the Water Canyon property. Management believes that Water Canyon shows excellent exploration potential within the property position to develop near-surface reserves of Mule Canyon grades, and deeper potential for high-grade veins similar to the nearby Fire Creek deposit. Fire Creek, located on trend south-southeast of Water Canyon, has similar geologic characteristics and currently contains over 1 million ounces of gold at an average grade of 0.5 ounces per ton.

"The acquisition of the Water Canyon Project with Newmont as a possible joint venture partner is definitely a milestone for our company," said Bruce Johnstone, President & CEO. "Its exploration will be a high priority for Homeland moving forward and has excellent potential for the discovery of a high-grade economic ore body."

Initial exploration will consist of detailed geologic mapping, further geophysical surveys, and will be followed by a reverse circulation drilling program.

Disclaimer: This announcement may contain forward-looking statements which involve risks and uncertainties. Please visit our website at www.hpmef.com to read our complete disclaimer or view the Homeland Precious Metals Corp. filings with the Securities and Exchange Commission which may be accessed through the SEC's web site at http://www.sec.gov.

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