Mr. Ashis Basu reports

HOMELAND ENERGY GROUP ANNOUNCES CREDIT FACILITY WITH ICICI BANK OF US$30 MILLION

Homeland Energy Group Ltd. has signed a facility agreement with ICICI Bank to provide a credit facility of $30-million (U.S.) to provide finances for capital expenditures and development of the company's assets. The facility will bear interest at the 90-day London interbank offered rate (LIBOR) plus 4 per cent payable quarterly and will have a term of six years. Repayment of the facility will commence 24 months after the first drawdown. The loan will be fully secured against the assets of the company and its subsidiaries. GMR Energy Ltd., the controlling shareholder of the company, has agreed to subordinate its security interest in favour of ICICI Bank. GMR Infrastructure Ltd., an affiliate of GMR Energy, has also agreed to provide a guarantee in respect of the facility. The facility will be subject to mandatory prepayments if the company raises finances from alternative sources during the term of the loan.

This facility will allow the company to expand operations at Kendall and continue to work toward the development of the Eloff project. It will provide the company with the flexibility necessary to implement the company's business plan.