Homeland Energy Group Ltd.

Homeland Energy Group Ltd.

December 12, 2007 12:00 ET

Update on Homeland Energy Corp.-Listing and Merger

TORTOLA, BRITISH VIRGIN ISLANDS--(Marketwire – Dec. 12, 2007) - Homeland Energy Corp. (“HEC” or the “Company”) wishes to confirm that it has now received and is addressing comments from the TSX Venture Exchange (the “Exchange”) on its Filing Statement and National Instrument 43-101 compliant project reports, on the Eloff and Kendal coal projects in South Africa. Due to the Christmas holiday period, particularly in South Africa, it is anticipated that the merger with Chrysalis should close and the Company’s common shares should be listed and begin trading in January 2008.

Additionally, closing the transactions and listing the common shares of HEC for trading in early 2008, as opposed to December 2007, will also assist in the Company’s marketing efforts to interested institutions, as institutions traditionally augment their portfolios and seek out new listings for increased growth early in January.

Below, please find an update on the 2-stage process of merging Chrysalis and Homeland. It should be noted that the first stage, the Takeover Offer, is being employed as a tax efficient strategy for Canadian and UK based shareholders allowing for a rollover of the cost base of HEC shares and avoiding the triggering of a taxable event. However, it is the second stage, the Merger, which will technically consummate the transaction.

Chrysalis Capital IV Corporation Takeover Offer

Given the delays in submission and the time requirements of the Exchange to approve the necessary documentation, Chrysalis Capital IV Corporation (“Chrysalis”) extended the takeover Offer that was set to expire on December 3, 2007. The Offer, made to all qualifying non-USA resident shareholders of HEC, has been extended to December 31, 2007. Qualifying shareholders have until that time to submit their acceptance of the Offer to Equity Transfer Corp, the Transfer Agent for Chrysalis and the Company.

Chrysalis Capital IV Corporation Merger with Homeland Energy Corp.

The approval of a resolution to proceed with the merger by shareholders representing the majority of the common shares of HEC is the actual event that will consummate the reverse take-over of Chrysalis by HEC and the listing for trading of the Company’s common shares. . All shareholders will receive, by mail, a copy of the resolution regarding the merger. Approval by shareholders holding more than 50% of the common shares of HEC is required to approve the transaction. Regardless of whether or not a shareholder has tendered shares to the Offer, management encourages all HEC shareholders to complete, execute and return this resolution as directed as soon as possible.

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/predevelopment coal projects in South Africa and a number of early-stage exploration properties in the Witbank, Middlefield and Standerton areas. Homeland 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 company with interests in long-term energy production and development of uranium projects in Niger and the United States. For more information about Homeland, please visit its website at www.homelandcorp.com.

About Chrysalis Capital IV Corporation

Chrysalis Capital IV Corporation is The Chrysalis Capital Group’s (“TCCG”) fourth capital pool company (“CPC”). TCCG is focused on generating superior shareholder returns through the creation of a series of unique CPCs. To date, TCCG has created five Chrysalis branded CPCs and has assisted in the creation of two additional CPCs under TCCG’s Partners Program. TCCG completed its most recent Qualifying Transaction (via Chrysalis Capital III Corporation) with U.S. Silver Corporation (TSXV: USA) on December 28, 2006. For more information about The Chrysalis Capital Group, please visit www.tccg.ca.

Contact Information