Homeland Energy Purchase of Appolo Fuels to Add 114 Million Tons Measured & Indicated Coal to Homeland’s Global Resource

Homeland Energy Group Ltd. report the receipt of initial results of a mineral resource study relating to Homeland’s recently announced acquisition of Appolo Fuels, Inc. (Appolo) (see Homeland Energy press release August 27, 2008). The resource estimation is being performed by Norwest Corporation’s (Norwest) Charleston, West Virginia office in compliance with Canada’s National Instrument 43-101, Standards of Disclosure for Mineral Projects. Norwest is an internationally-recognized leader in providing consulting expertise to the energy, mining, and natural resources industries.

Norwest reports that, as of August 21, 2008, Appolo’s properties host an in situ Measured & Indicated resource of 114.3 million short tons (Mt) of High Volatile A Bituminous coal, located on approximately 33,000 acres of leased coal property in Bell County, Kentucky and Claiborne County, Tennessee. Norwest identified an additional 17.7Mt that met the criteria of Inferred resource.

In developing the estimate of coal resources, Norwest utilized drill hole (465 holes) and mine map information provided by Appolo, field verification of mining operations, and quality data from Appolo coal deliveries and shipments supported by the Kentucky Geological Survey database. The estimates listed above represent in-place geologic resources and do not necessarily reflect resources which may be technically and economically recoverable. Further mining and economic studies are required to determine the extent to which any of this resource is commercially viable.

Mr. Kevin Whipkey, P.E., a professional mining engineer employed by Norwest, is the “Qualified Person” as defined under National Instrument 43-101 for purposes of resource verification and estimation for this property. Mr. Warren Evenson, P. Geol., a senior geologist with Norwest is also listed as “Qualified Person”. Both Mr. Whipkey and Mr. Evenson have reviewed and verified the technical content of this press release.

Homeland Energy Group Ltd. is a producing coal company, traded on the Toronto Stock Exchange under the symbol “HEG”. The company is focused on energy exploration and development in Southern Africa. Homeland owns two producing operations – the Kendal Mine near Witbank, South Africa and the Northfield site reclamation project near Dundee, South Africa; an advanced development stage coal project in South Africa (Eloff Coal Mining Project) as well as a number of early-stage exploration properties in the provinces of Mpumalanga and Kwa-Zulu Natal. Total South African production for 2009 is forecast to be 2.1-million tonnes from Kendal and Northfield.

The Company is currently negotiating to acquire interests in a number of additional coal properties in eastern South Africa and neighbouring countries. Homeland is a significant shareholder in Homeland Uranium Inc., a Canadian uranium exploration and development company focused on projects in Niger and the United States, and has several other global strategic investments. Homeland Energy Group Ltd. began trading on the Toronto Stock Exchange on March 5, 2008 and has 150,079,642 common shares issued and outstanding.

Website: http://www.homelandenergygroup.com