SOURCE: Homeland Resources Ltd.

April 19, 2011 09:15 ET

Homeland Resources to Drill New Offset Development Well to Marshall-1 Discovery

ALBUQUERQUE, NM--(Marketwire - Apr 19, 2011) - Homeland Resources Ltd. (OTCQB: HMLA) is pleased to report that the Company has elected to participate in the drilling of the first offset development well at the successful Smoky Hill Project in Southern Oklahoma.

The target area for the Marshall-2 development well is located directly offset the original Marshall-1 oil and gas discovery well which is currently flowing 320 barrels of oil per day. The Marshall-2 development well is expected to test the same productive pay zones encountered in the first well.

"We continue to be encouraged by the significant production rates from each of our first three wells. Another well directly offset the Marshall-1 is the first step of our long-term plan to fully exploit each of these new pool discoveries," says Armando Garcia, President of Homeland Resources. "In addition to plans at the Marshall, the Company and its partners are currently evaluating potential development drilling locations offset other recent discoveries. We intend to begin drilling at those locations as soon as possible."

Total flow rates for the three wells currently producing at the Smoky Hill Project has averaged 405 barrels of oil and 100 mfc of natural gas per day for the past month, and flow rates continue to be strong. The Company expects only minimal, if any, production decline in the near future.

Each prospect location at the Smoky Hill Project was selected based on positive anomalies from a proprietary database of 3-D seismic surveys conducted by Homeland and its partners. Expected total program reserves to be developed at the Smoky Hill Project could be in the range of 750,000 BO and 0.15 BCFG.

Further information regarding drilling of the Marshall-2 offset well and other Homeland Resources activities will be released as it becomes available.

About Homeland Resources

Homeland Resources is an expanding exploration and production company focused on developing North American and international oil and natural gas reserves. The Company's current focus is on the continued exploration and development of its land portfolio comprised of working interests in the Smoky Hill Project (5% interest), and working interest in the Liberty Ridge 3-D Seismic Project (5% interest). Homeland Resources is seeking to further develop its existing projects and to expand its portfolio to include additional interests in North America.

Statements which are not historical facts are forward-looking statements. The Company makes forward-looking public statements concerning its expected future operations, performance and other developments. Such forward-looking statements are necessarily estimates reflecting the Company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements. It is impossible to identify all such factors but they include and are not limited to the existence of underground deposits of commercial quantities of oil and gas; cessation or delays in exploration because of mechanical, operating, financial or other problems; capital expenditures that are higher than anticipated; or exploration opportunities being fewer than currently anticipated. The Company has no official gas or oil reserves at this time and may not have sufficient funding to thoroughly explore, drill or develop its properties. Factors which could cause actual results to differ materially from those estimated by the Company include, but are not limited to, government regulation, managing and maintaining growth, the effect of adverse publicity, litigation, competition and other factors which may be identified from time to time in the Company's public announcements and filings.

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