Homeland Energy Group Ltd announce that further to its press release dated July 4 2011, the Company has received a second draw down of USD 10 million under its USD 30 million credit facility with ICICI Bank.

The Company had initially drawn down USD 10 million on June 30 2011. Under the amended terms, the facility will bear interest at the rate of the 3 month USD LIBOR + 4.5%. All other terms of the facility remain the same. The funds from this second draw will be used for working capital purposes.

Homeland Energy Group Ltd 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 neighboring countries as well as internationally. Homeland is a shareholder in Homeland Uranium Inc., a Canadian uranium exploration company focused on projects in Niger and the United States.