GMR

Homeland Energy Group Ltd. (TSX:HEG) ("Homeland" or the "Company") wishes to
advise shareholders on the process for participating in the Rights Offering
previously announced June 2, 2010.


Each holder of record of Homeland common shares ("Common Shares") as of the
close of business on June 9, 2010 will receive one right ("Right") for each
Common Share held. A Shareholder will be entitled to acquire one additional
Common Share at a price of $0.05 per Common Share (the "Subscription Price") for
every 1.7265 Rights held. For example, if a shareholder holds 100,000 Common
Shares, he will receive 100,000 Rights and will have the right to subscribe for
57,920 Common Shares (the "Basic Subscription Privilege"). 


The Rights will expire at 5:00 p.m. (Toronto time) on June 30, 2010 (the "Expiry
Time"). Holders of Rights who exercise their Rights in full will be entitled to
purchase, at the Subscription Price, any Common Shares that are not otherwise
subscribed for under the Basic Subscription Privilege prior to the Expiry Time
(the "Additional Subscription Privilege"). If subscriptions for Common Shares
under the Additional Subscription Privilege exceed the total number of Common
Shares available under the Rights Offering, Common Shares will be allocated on a
pro rata basis to persons exercising the Additional Subscription Privilege.


To subscribe for Common Shares, a completed rights certificate, together with
payment in full of the Subscription Price for each Common Share subscribed for
(under both the Basic and the Additional Subscription Privilege), must be
received by the subscription agent for the Rights Offering, Equity Transfer and
Trust Company (the "Subscription Agent"), prior to the Expiry Time.


The Rights Offering is available only to residents of Ontario, British Columbia
and Alberta in Canada and residents of the United Kingdom. Rights certificates
will not be mailed to holders of Common Shares resident outside of these
jurisdictions ("Non-Qualifying Shareholders"). U.K. residents should contact
their broker for additional instructions. Non-Qualifying Shareholders will be
sent a letter advising them that their rights certificates will be issued to and
held by the Subscription Agent, which will hold those Rights as agent for the
benefit of all Non- Qualifying Shareholders.


The Rights and Common Shares issuable upon the exercise of the Rights have not
been and will not be registered under the U.S. Securities Act and may not be
offered or sold in the United States of America or any of its territories or
possessions or to U.S. Persons. Accordingly, subscriptions will not be accepted
from any security holder or transferee who is a U.S. person or resident in the
United States of America, its territories or possessions, and no prospectus will
be delivered to such persons.


Homeland will accept subscriptions from Non-Qualifying Shareholders, other than
holders resident in the United States, if they satisfy the Subscription Agent
and Homeland that such offering to and subscription by such holder or transferee
is lawful and in compliance with all securities and other laws applicable in the
jurisdiction where such holder or transferee is resident. A Non-Qualifying
Shareholder in a jurisdiction other than the United States who meets these
requirements and wishes to exercise Rights should contact Homeland as follows:


Catherine Beckett, Manager Corporate Affairs either by phone at 416-542-3994 or
by email at cbeckett@homelandenergygroup.com 


as soon as possible.

After June 23, 2010 the Subscription Agent will attempt, on a commercially
reasonable basis, to sell the Rights of Non-Qualifying Shareholders (other than
those shareholders from whom Homeland accepts subscriptions) over the facilities
of the Toronto Stock Exchange. The Subscription Agent will mail cheques
representing the net proceeds, without interest, from such sales.


As previously announced, GMR Energy Limited ("GMR") has agreed to provide a
standby commitment under which it will purchase from the Company up to a maximum
of 159,862,800 Common Shares not otherwise subscribed for under the Rights
Offering prior to the Expiry Time. 


The maximum proceeds under the Rights offering will be $8,750,000. The net
proceeds under the offering will be used to repay the loan made by an affiliate
of GMR of $7,993,140 and for working capital.


Further details concerning the Rights Offering and the procedures to be followed
by holders of Common Shares are contained in the prospectus available on
www.sedar.com.


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 is a shareholder
in Homeland Uranium Inc., a Canadian uranium exploration company focused on
projects in Niger and the United States. Homeland Energy Group Ltd. is currently
traded on the Toronto Stock Exchange under the symbol "HEG" with 302,115,756
common shares issued and outstanding. www.homelandenergygroup.com. 


Please visit www.homelandenergygroup.com

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