Homeland owns and has submitted applications for three advanced development / pre-development stage coal projects in South Africa and, through local subsidiaries, has received prospecting rights for eight additional earlier-stage exploration properties in the Witbank, Middleburg and Carolina areas. Homeland is currently negotiating to acquire interests in a number of additional coal projects in South Africa, Botswana and Swaziland. Existing properties are located in the provinces of Kwa-Zulu Natal and Mpumalanga of South Africa. It is anticipated that production for domestic sale from the first of these projects will commence in early 2008.

To view the Independent Technical Report for the Kendal Project, please click here

Situated approximately 2.5 km northeast of Eskoms’ Kendal Power station, to the southwest of the town of Ogies in the Mpumpalanga Province of South Africa, lies Homeland’s Kendal property. The Kendal Project has a resource estimated of 34 million tons of thermal coal. The majority of coal is recoverable from the surface.

The coal is present in the Ecca sediments of the Karoo Super Group, which reaches a width of approximately 150m in this area. The mineralized deposit for the purposes of this project include #4, upper and lower, #3 and #2 seams. The Project area is near the western extreme of the Witbank Coalfield wherein a general lithology would indicate 5 seams are present.

In March 2008, Homeland Energy Group was granted a mining right for the Kendal Coal Project. Mining at Kendal is due to commence in the second quarter of 2008, following commissioning of the recently built on-site crushing and screening plants and the 200tph Parnaby Cyclones wash plant. Commissioning of the plants will take place using previously mined material, currently sitting in dumps on the Kendal mining site. This contract went out to tender in late December 2007, responses were received in late January and Homeland's operations team is in the final phase of negotiations with several of the interested parties. It is anticipated that the mining contract will be awarded in early April 2008.

With the processing facility on site, the Kendal Coal Project has an opencast resource well situated in close proximity to South Africa's large industrial base in Johannesburg. Approximately 57 per cent of the production from Kendal will be sold into the lucrative domestic industrial markets with the remainder, largely a run-of-mine product, feeding the growing domestic electrical markets. Kendal is designed to process approximately 6,000 tonnes per day, producing approximately 112,000 tonnes per month of saleable coal.

To view the Independent Technical Report for the Eloff Project, please click here

The Eloff Project lies in the western extremity of the Witbank Coalfield and is located to the south of the town of Delmas, in Mpumalanga Province of South Africa.  Surrounding areas have historically supported a number of mining operations.

The Eloff Project is a large coal resource, potentially opencastable, which is expected to supply a low grade of coal to the power generating industry and possibly be upgraded for local industrial consumption or international export markets. The Company has been issued a prospecting license and a drilling program is underway.  An application for a Mining License is being prepared. The general lithology of the project area would indicate 5 seams are present. The mineralized deposit for the purpose of this project is expected to include the #2, #4 and #5 seams.

The Northfield Project is the first of Homeland’s environmental reclamation projects that seek to remediate former coal slurry dumps to the benefit of the environment and the local community. Historical coal mining operations have often left the environment in an abandoned state. In partnership with the local government and the Department of Minerals and Energy, Homeland will clean up the land and process the remains of these mines.

The Northfield Project lies in the northwestern Kwa-Zulu Natal Coalfield, northwest of the town of Glencoe in the Kwa-Zulu Natal Province of South Africa. Several other defunct mines exist in the surrounding area.

The Northfield Project is a small resource of tailings material left over by coal processing at the Northfield Colliery. Homeland received a mining permit in December 2007. In early February 2008 mining operations commenced at the site and sales into the domestic industrial market are expected to begin in April 2008.

At the Onbekend deposit a prospecting license has been granted over 2,864 acres and drilling has commenced.

At the Boschpoort deposit a prospecting license has been granted over 1,645 acres and drilling is to commence shortly.

Prospecting license has also been granted over 8,964 acres at the Carolina deposits.

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