Homeland Energy Holds Official Ceremonies for Kendal Mine Opening, South Africa

Homeland Energy Group Ltd., in conjunction with Homeland Energy & Mining, SA, held grand opening ceremonies for the Kendal Colliery yesterday at the Kendal site, approximately 90km east of Johannesburg earlier this week.

Following a tour of the mine and plant sites, as well as the new housing community Homeland has built for local residents, Deputy Minister of Minerals & Energy, Ms. Futhi Zikalala, addressed the gathering on behalf of the Minister of Energy & Minerals, Her Excellency, Hon. Bulyewa Sonjica. Ms. Zikalala commented on the need for mining companies to become partners in the communities where they operate and commended Homeland on its provision of new housing for families formerly on the land under Kendal’s mining lease.

Homeland Energy Group CEO, Stephen Coates, thanked all those involved in the rapid development of the Kendal Colliery and reaffirmed Homeland’s commitment to production and development in South Africa. “The Kendal colliery is just the start for Homeland in southern Africa,” commented Coates. “With Kendal ramping up to full production by early 2009, the progression of the Eloff project and particularly the addition of the Appolo Fuels mine in Central Appalachia, USA, Homeland’s profile of cash flow and production will continue to be a defining difference to much of the rest of junior resource public markets.”

More than 200 people attended the formal ceremonies including members of the local and national media, contractors working with Homeland at Kendal such as Moolmans, which has a three year mining contracts and Fraser Alexander, operator of the wash plant as well as employees of Homeland Mining & Energy, South Africa and Homeland Energy Group executives.

In late September, Homeland announced the first formal contracts for the domestic sales of approximately 500,000 tonnes of thermal coal from the Kendal Mine priced in excess of 700 Rand per metric tonne (US$88/tonne at current exchange rates).

Kendal began production in July 2008 and is in the process of ramping up to its projected run-of-mine production rate of 1.8 million tonnes per year. The company anticipates approximately 850,000 tonnes of quality, washed product per year with the balance reflected in waste rock and raw coal sales.

Please go to www.homelandenergygroup.com for photos of the Kendal Colliery.

Homeland Energy Group Ltd. is a coal producer with operations 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 is currently negotiating to acquire interests in a number of additional coal properties in eastern South Africa and neighbouring countries as well as in the United States. Homeland is a significant shareholder in Homeland Uranium Inc., a Canadian uranium exploration and development focused on projects in Niger and the United States. Homeland also has an aggressive global acquisition strategy with a focus on energy resources.

Homeland Energy Group Ltd. is currently traded on the Toronto Stock Exchange under the symbol “HEG” with 150,079,642 common shares issued and outstanding. www.homelandenergygroup.com.