Underworld Resources Inc.
TSX VENTURE : UW

Underworld Resources Inc.

September 04, 2007 09:00 ET

Underworld Resources Exploration Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 4, 2007) - Underworld Resources Inc. (TSX VENTURE:UW) is pleased to provide an exploration update on the Company's projects in New Zealand and the Yukon Territory.

New Zealand

Underworld has completed the initial drilling programs on two of its New Zealand exploration properties. The Golden Progress mesothermal occurrence is located in the Otago Goldfield in South Island, New Zealand, 45 km from the Macraes Gold Mine (reported historic production plus reserves of 3.4 million ounces of gold).

The reverse circulation (RC) drilling program at Golden Progress consisted of eight holes which tested parts of the Great Eastern and Gardiner's Reef. The reefs are steeply dipping shear controlled quartz veins with strike lengths of up to 400m. An initial drill program consisting of 1,000m of RC and 200m of core was planned, however, the program coincided with severe winter conditions which made working conditions unsafe and only 534m of RC drilling was completed. The balance of the program will be undertaken in November. Assay results are pending. Underworld has the right to acquire a 75% interest in the Golden Progress Property (see NR#5 June 11, 2007).

The Lottin Point Property is a volcanogenic massive sulphide (VMS) prospect, located at East Cape, North Island, New Zealand. The core drilling program at Lottin Point consisted of three holes totaling 331m. Exploration programs conducted at Lottin Point by Underworld prior to drilling included ground IP and EM geophysics, a detailed gravity survey, trenching and surface mapping. The core drill holes tested targets defined by the trenching results, geophysical (IP) response and geological mapping. None of the drill holes intersected significant sulphide mineralization.

On August 10th Crown Minerals (the NZ Mines Ministry) granted Underworld Resources (NZ) Limited a 1,990 hectare Exploration Permit, EP 40 866 over the historic Aorere Goldfield in South Island, New Zealand. Known as the Red Hill Property, the area will be held 100% by Underworld. The property is located in north east South Island where gold was first discovered in 1857. The field produced in excess of 20,000 ounces from both alluvial and hard rock sources. The five year Exploration Permit, encompasses a sequence of felsic volcanic occurrences that have the potential to host volcanogenic massive sulphide gold and base metal mineralization. The area has seen limited modern exploration with the most recent drilling being in 1984. Underworld will be defining drill targets at Red Hill by compiling the existing data into a digital format, conducting geological mapping, prospecting, sampling and trenching.

Yukon

Field work has commenced on the White and Black Fox gold properties in the Yukon Territory, Canada. The two claim packages comprise an aggregate 11,850 acres and are located 95 kilometers south of Dawson City. The summer campaign included geological mapping, 700m of mechanical trenching and 1400 additional grid soil samples. A program of 20 line kilometers of ground geophysics (dipole dipole IP) has commenced and is expected to be completed by mid September. The objective of the summer program is to identify targets for an aggressive 2008 drill campaign.

Extensive soil sampling by previous operators has collected in excess of 2900 soil samples on 100 line spacing and 50 meter station spacing. The grid covered an 8 kilometer long by 3 kilometer wide area. The soil survey revealed a continuous 7 kilometer by 1.2 kilometer arsenic and antimony soil anomaly with values reaching 1,660 ppm As and 166 ppm Sb - the arsenic, antimony anomaly is still open in three directions.

The soil survey also revealed five distinct gold anomalies over the eight kilometers of grid work. The Teacher Gold Zone measures 1.5 kilometers long by 500 meter wide with soil values reaching 833 ppb Au. The Mid Creek Gold Zone measures 1 kilometer long by 500 meters wide with soil values reaching 567 ppb Au. The Quartz-Thrust Fault Gold Zone measures 2.2 kilometers long by 400 meters wide with soil values reaching 976 ppb Au. The Golden Saddle Zone measure 1.8 kilometers long by 1.1 kilometers wide with soil values reaching 669 ppb Au, and the fifth zone called the Donahue Zone measure 800 meters long by 700 meters wide with soil values reaching up to 9,019 ppb Au. Limited shallow trenching was completed by previous operators on the White and Black Fox properties. No drilling had been undertaken.

On the White property, hand trenching completed in 2003 exposed two quartz veins up to 3.0 meters wide and returned assays of 4.4 g/t Au, 7.0 g/t Au and 9.75 g/t Au from bulk samples on the Mike vein and 3.7 g/t Au and 5.5 g/t Au from the Shawn vein. The exposure of these veins has been traced 150m further north-east where additional hand trenching has exposed a further sulphide bearing quartz vein. Assays from the new exposures indicate that the grade can be traced along strike, with 1.3 g/t Au, 2.6 g/t Au, and 10.7 g/t Au from bulk samples returned to date. Soil sampling on a 100 long by 50 meter grid revealed a coincident Au-As-Sb anomaly (10 to 1,056 ppb Au, 100 to 954 ppm As, 4 to 97 ppm Sb) forming a horseshoe shaped belt over 2,000 meters long and 50 to 700 meters wide. The White property occurs in a flat lying, high strain package of isoclinally folded meta-sediments, thrust over barren mafic gneiss.

At the Black Fox property, subcropping quartz float samples range from 0.41 to 28.8 g/t and are hosted within a 700 long by 150m wide gold in soil anomaly (20 to greater than 1000 ppb Au). The property is underlain by metamorphosed, fine-grained siliciclastic sediments, intruded by granite stocks and dykes, and ultramafic intrusive units of varying ages.

A geological model with a focus on mineralization is being developed by site geologists and visiting consultants for the White and Black Fox properties this season to guide exploration, including diamond drilling, for the 2008 season.

Other

The Company has granted effective August 31st, 2007 an aggregate 210,000 incentive stock options, exercisable at a price of $.85 per share for a period of five years pursuant to its stock option plan accepted by the TSX Venture Exchange on January 30, 2007.

Underworld is continuing with its aggressive exploration program in New Zealand and in Yukon Territory, Canada. It is Underworld's intention to continue to acquire and test prospects of merit in New Zealand, Australia and elsewhere.

ON BEHALF OF THE BOARD OF DIRECTORS

Adrian Fleming, President

Some statements in this news release contain forward-looking information, including without limitation statements as to planned expenditures and exploration programs. 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 without limitation the completion of planned expenditures, the ability to complete exploration programs on schedule and the success of exploration programs.

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

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