Press Release Homeland Energy – The Subsidiary Company
Toronto, Canada (March 26, 2013) - Homeland Energy Group Ltd. (TSX: HEG) (“Homeland” or the “Company”) wishes to announce that it has entered into an agreement dated March 25, 2012 to dispose of its 50% interest in the Eloff Property, through the sale of shares of Tshedza Mining Resource (Pty) Ltd., in consideration for the payment of ZAR110 million (approximately $12 million). The purchaser of Homeland’s interest in the Eloff Property is the Company’s current BEE partner, which already holds a 50% interest in the property. An initial payment of ZAR70 million has been made with the balance being paid upon receipt of the required regulatory approvals in South Africa. The transaction has been approved by the board of directors of the Company. Funds will be used to reduce the principal amount of the bank loan to ICICI Bank and for general working capital.

The decision was made by Homeland to divest itself of the Eloff Property following the completion of a feasibility study that indicated that the quality of the coal at Eloff would result in it only being saleable to ESKOM or for export to India. The logistics for evacuation of coal for export to India is constrained by the very limited availability of rail and port capacity in South Africa. The risks associated with the substantial capital cost of commencing production at Eloff were considered to be too high given the limited upside of the project.

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 472,204,149 common shares issued and outstanding. www.homelandenergygroup.com

FOR FURTHER INFORMATION PLEASE CONTACT:

Ajay Gupta
Chief Financial Officer
Homeland Energy Group Ltd.
+1 416 506-1979
info@homelandenergygroup.com