Underworld Resources Inc.
TSX VENTURE : UW

Underworld Resources Inc.

June 11, 2007 09:00 ET

Underworld Resources Inc.: News Release

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 11, 2007) - Underworld Resources Inc. (TSX VENTURE:UW) (the "Company") disclosed in its prospectus dated January 29, 2007 that it had, through its wholly owned New Zealand subsidiary - Underworld Resources (NZ) Limited ("URNZ") entered into a letter agreement with STRACON (NZ) Limited ("STRACON") dated November 16, 2006 for purposes of undertaking due diligence on the Golden Progress Property, New Zealand (the "Property"). The Company is pleased to report that it has deemed the Property to be of material interest; that it has notified STRACON of its intention to move forward to earn an interest therein; that it has completed a NI 43-101 compliant technical report on the Property; and that it will be seeking TSX Venture Exchange acceptance to the same.

To acquire an initial 50% interest in the Property, the Company must pay an aggregate NZ$200,000 over the course of two years, incur work expenditures on the Property totaling NZ$1,000,000 over the course of three years, and issue 250,000 shares to STRACON on the date URNZ has incurred all of the work expenditures on the Property. To acquire an additional 25% interest in the Property (increasing its interest to 75%), the Company must pay an additional NZ$50,000 to STRACON, incur additional work expenditures of NZ$750,000 on the Property, issue an additional 250,000 shares to STRACON, and complete a bankable feasibility study on the Property (all prior to November 2, 2011).

The Golden Progress Property is located in the Central Otago Region of the South Island of New Zealand. The Property is 50km from the Macraes Gold Mine and 115km NW of the city of Dunedin. The prospect has untested potential for a Macraes style, structurally controlled, quartz vein hosted gold mineralization. The Macraes Gold Mine is New Zealand's largest producing gold operation. The mine has been in operation since 1990 and has produced over 2 million ounces of gold to date.

Underworld will commence a surface program of geological mapping and sampling prior to a 2,000 meter drill campaign later in 2007.

Underworld is a well-structured junior exploration company exploring in New Zealand and Canada. Drilling is underway at the Lottin Point Property in New Zealand and an aggressive geological mapping, mechanical trenching and IP geophysical program is planned at the White Gold and Black Fox properties in the Yukon.

ON BEHALF OF THE BOARD OF DIRECTORS

Adrian Fleming, President

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

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