Underworld Resources Inc.
TSX VENTURE : UW

Underworld Resources Inc.

July 10, 2007 16:00 ET

Underworld Announces Closing of 1st Tranche of Non-Brokered Private Placement Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 10, 2007) - Underworld Resources Inc. (TSX VENTURE:UW) reports that the non-brokered private placement announced on June 7, 2007 was oversubscribed by 11,475 shares for a total financing of 3,436,475 shares at a price of $0.95 per share.

The first tranche of the private placement has been completed and a total of 3,252,264 common shares were issued at a price of $0.95 per share.

Finder's fees of 7% were paid as follows: $49,941.50 was paid to Canaccord Capital Corporation and $70,157.50 was paid to Freemind Business Corporation; 3,500 shares were issued to RBC Dominion Securities and 86,634 shares were issued to Wolverton Securities Ltd.

All of the securities issued hereunder are subject to a hold period and may not be traded until November 7, 2007 except as permitted by Canadian securities legislation and the TSX Venture Exchange.

The Company expects to use the proceeds of the private placement for exploration expenses on the Company's projects and for general working capital.

Underworld is a well-structured junior exploration company exploring in New Zealand and Canada. Drilling is planned at both the Lottin Point and Golden Progress Properties in New Zealand during the summer of 2007. Underworld is also planning an aggressive geological mapping, mechanical trenching and IP geophysical program at the White Gold and Black Fox properties in the Yukon.

ON BEHALF OF THE BOARD OF DIRECTORS

Adrian Fleming, President

Some statements in this news release contain forward-looking information. These statements include, but are not limited to, statements with respect to the completion of transactions and the use of proceeds. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, the ability to complete contemplated transactions and the use of proceeds.

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

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