The author has absolutely no clue what he is doing - don't even touch this with a stick. You can spot high entropy data hidden in the least significant bits of an image from a mile away unless you work hard to not disturb statistical properties. And the code is a mess, too.

I shouldn't judge a book by its cover, but "topchicksdigengineeringguys.blogspot.com"?

Reading the description I was wondering how it was working because it says during encoding it hashes the image to create a key and during decoding it hashes the image to create a key. But if it is hashing the whole image these keys cannot be the same. But when you look at the code it is not hashing the whole image. It is only hashing a subset of the bits. :)

Sounds stupid. Steganography + Vernam cipher makes it impossible to detect and decrypt. Why would you artificially weaken it?

ObXKCD: http://xkcd.com/538/

Note, the submitter is the author.