Underworld Resources Inc.

Underworld Resources Inc.

September 14, 2009 09:01 ET

Underworld Increases Land Holdings Surrounding the Golden Saddle Discovery

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 14, 2009) - Underworld Resources Inc. (TSX VENTURE:UW) is pleased to announce that the Company has significantly expanded its land position in the White Gold District through acquisition and additional staking. The majority of this new ground is contiguous with the original claim group hosting the Golden Saddle and Arc gold discoveries.

The majority of new claims were staked by Underworld following the recent gold discovery on the Golden Saddle Deposit, located 90 km's south of Dawson the location of the famous Klondike Gold Rush.

In total, Underworld now holds title to or has title pending on 2,907 quartz mining claims for an aggregate area of 589 square kilometers, doubling the size of the land package.

The 100% owned White Gold Property hosts a significant discovery at the Golden Saddle Deposit. Underworld's ongoing drilling program currently has assays pending for a further 23 drill holes at the Golden Saddle Deposit and has increased the size of the current drill program at the White Gold Project to 25,000 meters.

Highlights of the 2009 drilling program at Golden Saddle include:

- WD09-29: 60.5 meters averaging 3.89 g/t Au

- WD09-31: 104.0 meters averaging 3.39 g/t Au

- WD09-47: 31.1 meters averaging 9.20 g/t Au

- WD09-64: 100.4 meters averaging 3.13 g/t Au

- WD09-69: 76.9 meters averaging 3.40 g/t Au

These new claims were staked based on regional geology and geochemistry, exhibiting favorable similarities to the Golden Saddle and Arc discoveries at White Gold.

Additionally, the Company has amended the Original Agreement with Shawn Ryan ("Ryan"), to acquire a 100% interest in an additional 646 claims in the White Gold District. As compensation for these claims, Underworld will pay the following:

- reimburse Ryan $250 per claim,

- issue to Ryan 200,000 common shares of Underworld on the date that is five business days following the date of acceptance of the TSX Venture Exchange of the Agreement

- issue an additional 200,000 common shares of Underworld on or before August 12, 2010 and issue an additional 200,000 common shares of Underworld on or before August 12, 2011.

- pay Ryan $1 per ounce for any ounces of gold on the additional claims that are categorized as Reserves or Measured or Indicated Resources in a National Instrument 43-101 technical report publicly distributed by Underworld (payable within 90 days of the date the report is published by Underworld) or at the time of the acquisition of at least 50% of the issued and outstanding voting or equity securities of Underworld by a third party based on an internal technical report prepared by Underworld (payable within 90 days of the acquisition).

Some claims recently acquired are subject to a finder's fee.

A plan showing the location of the Company's properties is available on the Company's web site www.underworldresources.com.

The Company is currently evaluating its extensive additional land holdings with reconnaissance mapping, sampling and prospecting. Underworld has carried out systematic ridge and spur soil sampling plus selective grid soil sampling on several of these new areas.

The ongoing 2009 Exploration Program is directed by Adrian Fleming, M.A.I.G, RPGeo, M.Aus.I.M.M., President of Underworld Resources and a Qualified Person as defined by NI 43-101. Mr. Fleming prepared, and approves of the content of this release.

Underworld Resources is a well-structured junior exploration company focused on expanding its new gold discovery in the Yukon.


Adrian Fleming, President

Forward Looking Statement

Some of the statements contained in this press release are forward-looking statements. Forward-looking statements are not historical facts and are subject to a number of risks and uncertainties beyond the Company's control, including, but not exclusively, statements regarding potential mineralization, exploration results, completion of work program and studies, and future plans and objectives of the Company. Resource exploration, development and operations are highly speculative, characterized by a number of significant risks, which even a combination of careful evaluation, experience and knowledge may not eliminate, including, among other things, unprofitable efforts resulting not only from the failure to discover mineral resources but from finding mineral deposits which, though present, are insufficient in quantity and quality to return a profit from production.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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