Mr. Roger Lemaitre reports

HOMELAND CONFIRMS SOUTHWARD CONTINUITY OF ANOMALOUS RADIOACTIVITY AT THE COYOTE BASIN URANIUM PROJECT

Homeland Uranium Corp. has provided a second update on part 2 of the phase II exploration drilling program at the 100-per-cent-owned Coyote Basin uranium project.

A further six reverse circulation (RC) drill holes, CB-RC-0029 to CB-RC-0034, have been completed as part of the continuing phase II exploration program totalling approximately 5,300 metres (17,500 feet). These drill holes were completed at 200 m (656 ft) spacings on a single east-west-oriented drill fence located approximately 200 metres (656 ft) south of the previously reported drill section that included holes CB-RC-0023 to CB-RC-0028.

Downhole Spectral Gamma Ray CPS (counts per second) readings from the first six drill holes reported previously confirmed the presence of a near-surface anomalous radiometric horizon occurring at depths ranging from approximately 50 to 100 metres (164 to 328 feet) below surface. This horizon was interpreted to dip gently eastward at approximately four degrees and to be associated with shales, claystones and fine-grained sandstone units within the Upper Member of the Fort Union formation.

Results from the next six drill holes (CB-RC-0029 to CB-RC-0034) demonstrate the southward continuity of this anomalously radioactive horizon over an interpreted strike length of approximately 200 metres (656 ft). Anomalous radioactivity has now been drill defined over an area approximately 1,000 m (3,280 ft) by 200 m (656 ft) and remains open for expansion in every direction. The dip, geometry and lithological association of the radiometric response observed on this southern drill fence are consistent with those identified on the northern section. As with the previously reported drilling, anomalous radioactivity in these holes is found to be widely dispersed within the same or similar stratigraphic package.

Roger Lemaitre, president and chief executive officer, Homeland Uranium, states: "This new fence of drill holes further advances our understanding of Coyote Basin and is a key step in confirming the historical operator's interpretation of a laterally extensive mineralized horizon that dips gently to the east. These results reinforce our confidence in the project's exploration model and provide an important foundation as we await geochemical assay data and prepare to resume drilling in the new year."

Homeland has moved the drill to test a third fence of holes approximately 200 m (656 ft) south of this newly drilled section.

Geochemical samples collected from the completed drill holes have been shipped to SGS Laboratories in Lakefield, Ont., for analysis. Homeland will report geochemical and assay results once they have been received, compiled and reviewed by the company.

The phase II drill program is expected to pause during the Christmas holiday period and resume operations in the New Year, following the scheduled break.

It is not uncommon for uranium mineralization within sandstone-hosted uranium deposits to be in disequilibrium with the daughter products of the radioactive decay series (see the quality assurance/quality control section below). While downhole gamma logging is often an effective tool for defining radiometric horizons and correlating with historical drilling, it has been determined that chemical assays will be required before uranium grades can be accurately determined. Continuing drilling and geochemical analysis will support refinement of the geological model and improved characterization of uranium mineralization.

Quality assurance/quality control

All drill holes are radiometrically logged using a calibrated QL40 SGR spectral gamma ray downhole probe, which collects continuous spectral gamma measurements along the length of the drill hole. Gamma value as counts per second are collected. The probe response is calibrated using coefficients derived from the probe's most recent factory calibration and through comparison of probe responses to geochemical assay data from previously sampled intervals.

Spectral gamma tools measure natural radioactivity, and in situations where the uranium decay series is in equilibrium, such gamma readings can be converted into equivalent concentrations of uranium, thorium and potassium. However, if the uranium decay series is not in equilibrium, conversion of spectral gamma into equivalent concentrations of uranium may not be accurate, a phenomenon known as uranium disequilibrium. Uranium disequilibrium has been documented to occur at the nearby former producing Maybelle uranium mine, located approximately 29 kilometres (18 miles) northeast of the Coyote Basin project.

As a first step in determining the accuracy of QL40 SGR Spectral Gamma Ray downhole probe and determining whether uranium disequilibrium may occur at Coyote Basin, Homeland's geological team used a portable handheld XRF (SciAps X-555 REE Analyzer) to test drill cuttings for the presence of uranium. Enough discrepancies have occurred when comparing the results of the Spectral Gamma Ray downhole probe and the XRF that additional geochemical and assay sampling will be required before uranium grades can be accurately determined.

Homeland has collected samples from each five ft interval of the drill holes for geochemical analysis which will be sent to SGS Laboratories in Lakefield, Ont. SGS Lab is certified ISO 17043: General requirements for proficiency testing. All SGS laboratories are required to participate in SGS's internal proficiency testing (PT) program: Laboratory Quality Systems International (LQSi) program, the largest PT program in the mining world. The SGS LQSi program currently involves over 100 laboratories on a regular basis, both SGS and non-SGS participants. SGS LQSi holds accreditation to the conformity assessment standard ISO 17043: General requirements for proficiency testing.

All depths and intervals reported are drilled depths and downhole lengths, unless otherwise stated. True thicknesses have not yet been determined.

About Homeland Uranium Corp.

Homeland Uranium is a mineral exploration company focused on becoming a premier United States-focused and resource-bearing uranium explorer and developer. The company is the 100-per-cent owner of the Coyote Basin and Cross Bones uranium projects in northwestern Colorado.

The Coyote Basin project is reported by Energy Metals Corp. in its quarterly management discussion and analysis dated Sept. 30, 2006, filed with the Securities and Exchange Commission (SEC) to contain an estimated historical resource of 8.85 million tons grading 0.20 per cent U3O8 (triuranium octoxide) and 0.10 per cent V2O5 (vanadium pentoxide) totalling 35.4 million pounds of U3O8 and 17.7 million pounds of V205 (see Energy Metal's SEC disclosure). This resource was calculated by the previous project operator, Western Mining Resources, based on a 1978 to 1979 program of surface sampling, coring, drill hole chip sampling and gamma logging of 24 widely spaced holes (private internal report, Western Mining, executive summary, Coyote Basin uranium district, Rio Blanco and Moffat counties, state of Colorado, January, 1980).

The company is not treating the Coyote Basin historical resource estimate as current mineral resources and the reader is cautioned not to rely on either of these estimates. A qualified person (as defined under National Instrument 43-101 -- Standards of Disclosure for Mineral Projects (NI 43-101)) has not done sufficient work to classify the historical resources from the project as current mineral resources or mineral reserves nor can the company or the qualified person comment on the quality or verify the data obtained from the assay sampling programs from the project that were used to determine these historical resource estimates, as such information was not included in the historical reports acquired by Homeland. The company is not treating the historical resource estimate as current mineral resources or mineral reserves and the company and the qualified person is unable to compare the historical resource estimate with the CIM's current resource classification system at this time. The Coyote Basin project any future NI 43-101 mineral resource estimate will require considerable further evaluation which will include completion of the phase I drilling program and may require addition drilling to follow up phase 1 results.

Qualified person

Nancy Normore, PGeo, the company's vice-president, exploration, is a qualified person as defined in National Instrument 43-101, and has reviewed and approved the technical content of this news release.