Homeland Energy Group Provides Operations Update

TORONTO, CANADA--(Marketwire - Jan. 3, 2013) - Homeland Energy Group Ltd. (TSX:HEG) ("Homeland" or the "Company") wishes to advise that, further to its press release dated November 5, 2012, it is continuing the process of retaining a new mining contractor.

Following a tender process that occurred in December, the Company has been in negotiations with acceptable contractors to reach an agreement that will permit cost effective mining at the Kendal property. While negotiations are progressing, the Company does not expect to be able to finalize an agreement and have operations resume before late February.

The Company continues to assess its operations and negotiate contracts so that when mining resumes, operations can be ramped up quickly.

The Company will provide a further update when more information is available.

Homeland Energy Group Ltd. (TSX:HEG) is a coal producer with operations in the Witbank area of South Africa. The company also has a large-scale development property in South Africa and exploration interests in Southern Africa. Homeland will continue to seek out interests in additional coal projects in South Africa and neighbouring countries as well as internationally. Homeland Energy Group Ltd. is currently traded on the Toronto Stock Exchange under the symbol "HEG" with 471,204,149 common shares issued and outstanding. www.homelandenergygroup.com.