Homeland Energy Group Receives Mining Licence for Eloff Coal Project, South Africa

Homeland Energy Group Receives Mining Licence for Eloff Coal Project, South Africa

Homeland Energy Group Ltd., a coal producer with operations in the Witbank area of South Africa announce that it has received formal notification from the South Africa Department of Mining & Energy (DME) that a Mining Right has been approved for Homeland’s Eloff Mineral Project (Eloff). At a potential 500,000 tonnes per month run-of-mine (ROM) – the amount for which Eloff will be initially licenced – Homeland will join the ranks of major miners in South Africa.

“Receiving the mining right for Eloff is the second significant milestone for Homeland’s management and technical teams in the past year, and we are extremely proud to have achieved it,” commented Stephen Coates, CEO. “With the award of the Eloff mining licence, we continue the momentum we began aggressively with the Kendal Mining Right in March 2008.”

Homeland is currently in the final stages of completing pre-feasibility work on Eloff through Exxaro Engineers of South Africa. Bankable feasibility work will commence thereafter. As the feasibility studies progress, the Company will continue discussions with potential partners on the options for power development on the back of the Eloff Mining Right. The focus in South Africa on Independent Power Producers (IPP) is increasing as the country’s demand for electricity increases. Homeland’s largest shareholder, GMR Energy Limited, has the experience and the energy and infrastructure expertise required to make significant contributions to success of Eloff.

Homeland expects that the majority of the resource in the Inferred category will move into Measured and Indicated categories upon completion of the resource definition drill program currently in progress.

The Eloff Project is located at the western extremity of the Witbank Coalfield approximately 10km to the south of the town of Delmas in Mpumalanga province, South Africa. The Company submitted the mining licence application in January 2008 and is grateful to the DME for their efficiency in processing this application and to our strategic partners for their input and assistance. Homeland currently owns 50% of the Eloff Project, with 50% owned by Homeland’s Black Economic Empowerment (BEE) partner.

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