Homeland Energy Group Second Default Status Report
TORONTO, CANADA -- (Marketwire) -- 04/23/10 -- Homeland Energy Group Ltd. (TSX: HEG) ('Homeland' or the 'Company') is providing its second Default Status Report in accordance with National Policy 12-203 ('NP 12-203').
On March 18, 2010, Homeland announced that its audited financial statements, management's discussion and analysis, annual information form and related CEO and CFO certifications for the year ended December 31, 2009 (the 'Annual Filings') would be filed late. A temporary management cease trade order in respect of securities of the Company was issued by the Ontario Securities Commission on April 6, 2010.
The Ontario Securities Commission posed a question concerning the accounting treatment of certain of the Company's investments (see Press Release dated March 18, 2010). Upon further review by the Company and its auditors, it was determined that these entities should be accounted for as variable interest entities therefore requiring consolidation into the Company's financial statements. However, there have been delays, beyond the control of management, in obtaining the required information for consolidation. The Company continues to progress toward finalizing the financial statements as it gathers necessary information required to complete the consolidation and audit.
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
Contacts:
Homeland Energy Group Ltd.
Jeff Lowe
Acting Chief Financial Officer
416 506-1979info@homelandenergygroup.comwww.homelandenergygroup.com