Homeland Energy Group Ltd.

Homeland Energy Group Ltd.

February 22, 2008 02:00 ET

Homeland Energy Corp. and Chrysalis to Close Qualifying Transaction on February 29th

- Company anticipates trading on the TSX in early March 2008 - Name change to Homeland Energy Group Ltd. upon closing of the Transaction - Homeland Energy acquires 15% of Altona Resources Plc - Strategic investor acquires an interest in Homeland's South African subsidiary

TORTOLA, BRITISH VIRGIN ISLANDS--(Marketwire - Feb. 22, 2008) - Homeland Energy Corp. ('Homeland' or 'the Company') is pleased to announce that merger partner, Chrysalis Capital IV Corporation ('Chrysalis'), has lodged its Filing Statement on SEDAR. This is the next step in the Reverse Take-over of Chrysalis (a Capital Pool Company) by Homeland. Upon closing of the RTO, the traded entity will be called Homeland Energy Group Ltd. and is expected to begin trading on the Toronto Stock Exchange under the assigned ticker symbol of "HEG" in early March 2008.

Homeland is pleased to announce that 26,982,980 common shares of Homeland ("Homeland Common Shares") have been validly deposited pursuant to the previously announced share exchange offer by Chrysalis. The deposited Common Shares represent 78% of the issued and outstanding Homeland Common Shares. Chrysalis intends to instruct the depositary, Equity Transfer & Trust Company, to take up and pay for all of the Homeland Common Shares validly deposited pursuant to the offer concurrently with the closing of the Qualifying Transaction.

The Filing Statement is a comprehensive compilation of information on both corporate entities, as well as information on the structure, composition and financial state of the resulting entity. This statement may be found on the SEDAR website at www.sedar.com, under Chrysalis Capital IV Corporation. Additionally, technical reports on the Company's Eloff and Kendal projects in South Africa by the independent firm of Steffen, Robertson and Kirsten (South Africa) (Pty) Limited ("SRK") Consulting Engineers & Scientists of Johannesburg, South Africa are also available on SEDAR under Chrysalis.

Acquisition of 15% of Altona Resources

In addition, Homeland announces that it has acquired 15.6% of Altona Resources Plc (AIM:ANR) ('Altona') through a share exchange with two of Altona's major shareholders. Altona is a Perth, Australia-based company focused on the delineation of a coal resource in South Australia and the completion of a feasibility study on a coal-to-liquid plant with power-generating capacity, also in South Australia. "By taking this position in Altona Resources, we continue to augment our investment in energy companies and create a geographically diverse portfolio of energy-focused projects, in addition to our own coal-focused operations in South Africa," commented Stephen Coates, President and CEO of Homeland Energy. "We add this Investment Stake in Altona to our existing 39% position in Homeland Uranium Inc, with its uranium exploration activities in Niger and the United States."

This transaction was completed on February 13, 2008 through the purchase of 44,250,000 shares of Altona Resources, by issuing 737,500 (pre-share split) new fully paid shares of Homeland Energy. Following this share issue, Homeland's total number of shares outstanding will be 34,521,826 (pre-share split).

Acquisition of interest Homeland's South African subsidiary by Strategic Investor

On February 8, 2008, Homeland received notification by a strategic investor that the investor would be exercising the first of its three options, under an MOU signed on December 15, 2007, to acquire up to a total of a 50% interest in Homeland's South African subsidiary, Homeland Mining & Energy SA (Pty) Ltd. ("HMESA"). The option was exercised for 5% of HMESA for a price of US$15,000,000, subject to satisfactory negotiation and execution of definitive documentation. The strategic investor has a second option to purchase another 5%, and a third option for 40% of HMESA, exercisable between now and December 31, 2008. The first two options may be converted into shares of Homeland if the strategic investor decides not to proceed further. Please see the "Recent Transactions" section of the Chrysalis Filing Statement for additional details.

Homeland Energy Corp. is a private (soon to be public) 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 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.

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