Underworld Resources Inc.
TSX VENTURE : UW

Underworld Resources Inc.

October 16, 2008 09:30 ET

Retransmission: Underworld Drills 3.1 g/t Au Over 50.7 Meters in 80 Meter Step-Out Hole at White Gold Property, Yukon

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 16, 2008) - Underworld Resources Inc. (TSX VENTURE:UW) is pleased to announce further assay results from an additional three drill holes at the 100% owned White Gold Property, Yukon Territory, Canada. Hole WD-021 at Golden Saddle returned the thickest intercept to-date, encountering 3.1 g/t Au over 50.7 meters from 96 meters at the Golden Saddle Zone.

Drilling at the White Property has discovered two separate, shallow-dipping, near surface gold mineralized zones over significant strike lengths that could be potentially amenable to open-pit mining methods. The Golden Saddle Zone and Arc Zone are both open for expansion in multiple directions.

At the Golden Saddle Zone, hole WD-21 is the northernmost intercept reported to date, and returned 3.1 g/t Au over 50.7 meters from 96 meters, including 3.4 g/t Au over 44 meters, or 3.79 g/t Au over 23 meters. This intercept is an 80 meter step-out northeast of the previously reported, hole WD-16, which returned 3.4 g/t Au over 14.2 meters. Additionally, hole WD-20 collared in gold mineralization at surface, returned 1.87 g/t Au over 27.7 meters. This intercept is 100 meters east of previously reported hole WD-09, which returned 4.2 g/t Au over 16.0 meters.

At the Arc Zone, hole WD-17 returned 1.47 g/t Au over 29 meters from 100 meters below surface. This drill hole is the second significant gold intersection at the Arc Anomaly and is located approximately 600 meters from WD-14 which returned 1.18 g/t Au over 28.5 meters from the surface and suggests significant strike potential for this zone. The Arc gold in soils anomaly, which is characterized by gold values exceeding 80 ppb, extends over a distance of two kilometers and is a separate target from Golden Saddle. Mineralization intersected in holes WD-14 and WD-17 is open in all directions.

The newly discovered zones of gold mineralization at the Golden Saddle Zone and Arc Zone occur within the Tintina gold belt. The White Gold Property is located within 30 kilometers of a road, and can be accessed by commercial river barge from Dawson along the Yukon River.

The 2008 drill program at White Gold, now complete, totaled 3,431 meters in 27 holes. The Phase two drill program commenced in August 2008, and completed holes WD-014 to WD-027 for a total of 2,188 meters. Assays from six additional holes are pending. Underworld is planning an aggressive drill program commencing in the spring of 2009 to expand the extent of mineralization at the Golden Saddle and Arc Zones, and to test multiple other targets on the White Gold Property.

Location maps, drill hole collar locations and a full table of assay results can be viewed shortly at www.underworldresources.com. Reported lengths are drill indicated lengths; true widths are not fully understood due to brittle faulting, however, are estimated to range from 72 to 95% of the drilled lengths.

Quality Assurance

Underworld has implemented a rigorous QA/QC program using best industry practice. Elements of the program include chain of custody of samples, standard and blank samples are submitted, with drill core sawn in half and shipped in sealed bags to Alaska Assay Laboratories in Fairbanks, Alaska. The ongoing 2008 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 NI43-101. Mr. Fleming prepared, and approves of the content of this release.

Underworld Resources is a well-structured junior exploration company targeting base and precious metals in the Americas.

ON BEHALF OF THE BOARD OF DIRECTORS

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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