Homeland Energy Group Ltd.

Homeland Energy Group Ltd.

March 12, 2008 14:21 ET

Homeland Energy Group Ltd. Secures New Shareholders

- Homeland welcomes BlackRock Investment Management and several other new shareholders - GC-Global converts debenture into 3,241,000 Homeland common shares

TORONTO, ONTARIO--(Marketwire - March 12, 2008) - Homeland Energy Group Ltd. (TSX:HEG) ('Homeland' or the 'Company') has been made aware that RAB Capital Plc. has sold its substantial investment position in Homeland in a private transaction to two dozen investors, led by BlackRock Investment Management (UK) Limited and including Fleming Family & Partners and Cheyne Capital.

"We would like to express our appreciation to RAB Capital for the support they have given Homeland to date and to BlackRock and this group of new investors for their trust in management's ability to move this company forward," commented Stephen Coates, President and CEO. "Homeland's management and board are extremely pleased to have these 31.2 million shares placed with top quality institutional and individual shareholders. We look forward to building value for them, as well as for all of our shareholders."

Convertible Debenture

The Company also announces that GC-Global Capital Corp. ('GC-Global) exercised its right to convert its loan to Homeland Energy Corp. into common shares on February 28, 2008, prior to the closing of the reverse take-over by Homeland Energy Corp. of Chrysalis Capital IV Corporation on February 29, 2008.

On June 12, 2007, Homeland Energy Corp. entered into a Loan Agreement with GC-Global, borrowing the principal amount of US$2 million through a 24-month convertible debenture. At their option, GC-Global converted the debenture on February 28, 2008 at Pounds Sterling 1.25 per common share (pre-share split) and received 810,250 common shares (pre-share split), equating to 3,241,000 common shares (post-share split) of Homeland Energy Group Ltd.

Homeland Energy Group Ltd. is a public company trading on the Toronto Stock Exchange under the symbol "HEG" focused on energy exploration and development in Southern Africa. Homeland owns three advanced development and 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, and has a several other global strategic investments. Homeland Energy Group Ltd. began trading on the Toronto Stock Exchange on March 5, 2008 and has 145,001,117 common shares issued and outstanding.


This release contains certain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections. Except for statements of historical fact relating to the Company, certain information contained herein constitutes "forward-looking statements". Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other ecological data, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors. Circumstances or management's estimates or opinions could change. The reader is cautioned not to place undue reliance on forward-looking statements.

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