Press Release

Oct 30, 2008 16:32 ET

Macusani Yellowcake Completes Private Placement to Homeland Uranium

TORONTO, ONTARIO--(Marketwire - Oct. 30, 2008) - Macusani Yellowcake Inc. (TSX VENTURE:YEL) ("Macusani") is pleased to announce that it has completed its previously announced private placement of units to Homeland Uranium Inc. ("Homeland"). Under the private placement, Macusani issued to Homeland 7,619,047 units of Macusani at a price of $0.2625 per unit for proceeds to Macusani of C$2 million. Each unit is comprised of one common share and 0.60 of a common share purchase warrant, with each whole warrant exercisable for a 24-month period to acquire an additional common share at a price of C$0.35. All securities issued pursuant to the private placement are subject to a 4-month hold period.

Following completion of the placement, Homeland now owns approximately 23.9% of the number of Macusani common shares (33.4% on a fully-diluted basis assuming the exercise of all warrants issued to Homeland under the placement).

Macusani proposes to use the net proceeds from the private placement to fund further exploration of its uranium properties located in Peru, and for working capital and general corporate purposes.

In conjunction with the private placement, Macusani has granted Homeland exclusivity rights until September 15, 2009 to negotiate and enter into an agreement respecting a business combination between the two companies. The exclusivity rights also preclude Macusani from soliciting other transactions regarding a change of control and provide Homeland with matching rights before Macusani may accept, approve or recommend any unsolicited change of control transaction.

Macusani also announces changes to the composition of its board of directors. Under the terms of the private placement, Nick Tintor, President and Chief Executive Officer of Homeland, has been appointed as a director. Lonnie Kirsh and Jim Andersen have resigned from the board reducing the size of the board from 5 to 4 members. Mr. Kirsh will continue to serve as legal counsel to the company.

About Macusani Yellowcake Inc.

Macusani controls over 20,000 hectares (2,000 km2) of mineral exploration properties prospective for uranium on the Macusani plateau in Peru.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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