Homeland Energy Group Ltd.
TSX : HEG

Homeland Energy Group Ltd.

July 07, 2008 02:00 ET

Homeland Energy Completes Initial Public Meetings Regarding the Development of Eloff Mining Project, South Africa

- Successful public consultation process for parties affected by the development of Homeland's Eloff Mining Project - Homeland issues preliminary production schedule as part of public process - Preliminary production schedule to be supported by pre-feasibility study currently underway

TORONTO, ONTARIO--(Marketwire - July 7, 2008) - Homeland Energy Group Ltd. (TSX:HEG) ('Homeland' or 'the Company') participated in due-course public meetings last week held as a discussion forum for parties - farmers, land owners, current residents, local businesses - which will be affected by the development of Homeland's half billion tonne coal resource near Delmas, South Africa. This public consultation is a significant part of the process toward the submission of an environmental management program report for the development of this resource, thereby moving Homeland closer to satisfying the requirements for obtaining a mining right from the Department of Minerals and Energy (DME), South Africa.

As part of this process, it was necessary for Homeland to issue a preliminary coal production schedule for the next 24 years. This schedule is based on management's estimates and it is anticipated that this estimate will be supported by a pre-feasibility -study now underway - due to be completed in September 2008. The preliminary production schedule indicates that an average of 48 million cubic metres of waste material (overburden) will be removed per year to produce an average run-of-mine production of 8 million tonnes of coal per year.

"We are extremely pleased with the tone and outcome of this public discussion," commented Mike Nell, Chief Operating Officer. "The purpose of this meeting was to inform local interested and affected parties about the development schedule and invite inputs that will be valuable to Homeland for the submission of an Environmental Management Program Report to the Department of Minerals and Energy."

Table 1 illustrates the amount of material estimated to be extracted as well as the breakdown by type of material (waste, run-of-mine material) and quality of the coal as estimated by drilling done over the course of the past 17 months on the Eloff Mining Project located 50km southeast of Johannesburg.



Table 1 - Abbreviated preliminary annual production schedule for Eloff
Mining Project

---------------------------------------------------------------------------
Description Unit Year 1 Year 2 Year 3 Year 4 Year 5
---------------------------------------------------------------------------
Volumes
Topsoil m3 241,878 384,352 600,725 700,828 796,030
Softs m3 1,355,462 1,972,797 2,480,385 3,586,103 4,084,364
Hards m3 6,427,671 14,625,631 27,457,707 31,354,673 34,916,309
Interburden m3 390,725 1,478,691 1,438,916 1,385,187
---------------------------------------------------------------------------
Total Waste m3 8,025,011 17,373,505 32,017,508 37,080,520 41,181,890
---------------------------------------------------------------------------
ROM (seam)
4Lower tonne 0 102,219 370,627 344,072 309,972
2Upper tonne 8,646 620,315 1,378,413 1,434,841 1,368,614
2Lower tonne 1,995,067 2,924,327 5,351,184 5,909,662 6,321,674
---------------------------------------------------------------------------
Total ROM tonne 2,003,713 4,646,861 7,100,242 7,688,575 8,000,260
---------------------------------------------------------------------------
Strip Ratio m3/t 4.01 3.74 4.51 4.82 5.15
---------------------------------------------------------------------------


---------------------------------------------------------------------------
Description Unit Year 6 Year 7 Year 8 Year 9 Year 10
---------------------------------------------------------------------------
Volumes
Topsoil m3 7,971,186 826,616 856,795 889,485 1,020,786
Softs m3 4,091,893 3,932,218 3,934,767 3,817,348 4,360,428
Hards m3 36,237,980 34,840,219 37,077,449 36,844,177 37,737,760
Interburden m3 1,559,865 1,745,933 1,906,685 1,723,644 2,084,386
---------------------------------------------------------------------------
Total Waste m3 42,686,924 41,344,986 43,784,696 43,274,654 45,203,360
---------------------------------------------------------------------------
ROM (seam)
4Lower tonne 319,524 360,042 323,980 305,705 306,678
2Upper tonne 1,576,086 1,786,248 1,617,308 1,082,722 1,748,679
2Lower tonne 6,112,441 5,894,871 6,106,965 5,872,336 5,938,006
---------------------------------------------------------------------------
Total ROM tonne 8,808,051 8,017,161 8,048,253 7,980,763 7,993,363
---------------------------------------------------------------------------
Strip Ratio m3/t 5.33 5.16 5.44 5.42 5.66
---------------------------------------------------------------------------


Homeland anticipates the completion of the Eloff pre-feasibility study by early September, 2008.

Homeland Energy Group Ltd. is a producing coal company, traded on the Toronto Stock Exchange under the symbol "HEG". The company is focused on energy exploration and development in Southern Africa. Homeland owns two producing operations - the Kendal Mine near Witbank, South Africa and the Northfield site reclamation project near Dundee, South Africa - an advanced development coal project in South Africa (Eloff coal mining project) 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, and has several other global strategic investments. Homeland Energy Group Ltd. began trading on the Toronto Stock Exchange on March 5, 2008 and has 150,079,642 common shares issued and outstanding.

Contact Information