Underworld Resources Inc.

Underworld Resources Inc.

April 04, 2007 09:00 ET

Underworld Resources New Zealand Exploration Update

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 4, 2007) - Underworld Resources (TSX VENTURE:UW) is pleased to provide details of its 2007 exploration plans. Underworld is conducting exploration in New Zealand for gold and base metals through its wholly owned subsidiary Underworld Resources (NZ) Limited.

Lottin Point Gold Project

The Lottin Point Property is a volcanogenic massive sulphide (VMS) prospect, located at East Cape, North Island, New Zealand. The Company recently completed a program of ground-based gravity, magnetics and IP geophysics. A detailed description of the Lottin Point Property is contained in the Underworld Resources Inc. Prospectus dated January 29th, 2007, which is available on www.sedar.com. The objective of the recent program was to identify the bedrock source of a barite-sulphide boulder train that occurs in two creeks in an area known as B-13. Assay results from samples collected from these boulders in October 2005 are as follows(1):

Method FA30g AR30g AR50g AR50g AR50g
Au Ag Cu Pb Zn
Sample ID ppm ppm ppm ppm ppm
Detection Limit 0.05 0.3 5 5 5
LP1 8.97 2.4 3900 260 greater
LP2 12.90 12.8 1600 4900 greater
LP3 12.70 22.0 1900 1100 greater
LP4 30.60 53.0 3000 660 greater

During March 2007 additional IP was undertaken - 3 lines for 2195 line metres to follow up the IP, mapping and trenching completed in 2006. A ground magnetic survey (4.05 line km) and a detailed ground gravity survey (101 stations at 20m spacing) were also completed. This work was undertaken to supplement exploration conducted by Underworld at Lottin Point in 2006 which included, a 739 reading EM-16 survey, 1.4 km of IP survey and 168m of trenching. Data from the March 2007 work is currently being processed and interpreted to refine drill targets. Additional mapping will be completed on the property during April, followed-up by diamond drilling in May.

Golden Progress Gold Project

At the end of February, the Company completed its due diligence on the Golden Progress Property located near Alexandra in Central Otago. In accordance with a letter agreement of November 2006 with STRACON (NZ) Ltd., Underworld was granted the right to evaluate the Golden Progress Property (GPP). On February 28th Underworld made a payment of NZ$50,000 to STRACON thus acquiring an option to earn a 75% interest in the property. Underworld is required to undertake exploration programs and make additional payments to STRACON in order to acquire a 75% interest in the property (details of which are contained in the Underworld Prospectus(1)). Prior to November 2, 2007 Underworld must spend NZ$150,000 on exploration including 500m of drilling and make a NZ$50,000 payment to STRACON on or before November 2, 2007.

The Golden Progress mesothermal occurrence is located in the Otago Goldfield in South Island, New Zealand and is 45 km from the largest deposit in the Otago Goldfield - the Macraes Gold Mine (reported historic production plus reserves of 3.4 million ounces of gold(2)). The structurally-controlled, gold mineralization seen at Golden Progress is of a similar style to Macraes.

Small scale underground mining commenced at Golden Progress in 1868, with total production of 4,990oz gold from 3,176 tonnes of quartz at an average grade of 48.8g/t Au(3). Production was from several steeply dipping quartz veins up to 11 meters thick, averaging about 1m thick, and extending 100 to 500 meters along strike. Historic average grades have ranged from 9 to 90 g/t Au(4). A sheeted vein system with at least 12 structures has been identified to-date and occurs within a 1,500 by 3,000 meter area. Since 1980, the Golden Progress has seen limited drilling with 20 reverse circulation drill holes totaling 1,900 metres being undertaken. The best intersection being 3 meters of 10.5 g/t Au(5) and no core drilling has been done on the property.

Underworld is planning to commence an exploration program at Golden Progress in April 2007 which will include mapping and sampling, and up to 2,000 meters of core and reverse circulation drilling.

Qualified Person

Exploration on the Lottin Point Property and the work done to date evaluating the Gold Progress Property has been completed under the supervision of Adrian Fleming, M.A.I.G., RPGeo, M.AusI.M.M., a Qualified Person as defined by NI 43-101.

Corporate Developments

Underworld Resources has granted an aggregate of 150,000 incentive stock options (the "Options") to consultants of the Company, exercisable at $0.83 per share. The Options are exercisable for a period of five years from the date of grant and are subject to the policies of the TSX Venture Exchange.


(1) Underworld Resources Inc. Prospectus dated January 29, 2007.

(2) Oceana Gold Limited, 2006 Annual Report.

(3) Williamson, J.H., 1939; "The Geology of the Naseby Subdivision, Central Otago". Geological Bulletin No. 39, New Zealand Geological Survey.

(4) Aldridge, C.H., 1985; "Reconnaissance of the Oturehua Mining Area Prospecting Licence 31 825, Oturehua, Otago" for Gemdek Mining Co. Ltd., Open File Report MR1966, Crown Minerals, Ministry of Economic Development, NZ Government.

(5) Grieve, P.L., Jillett. D.N.; 1997: "Rough Ridge Prospecting Licence 31 2479, Otago, New Zealand. Final report for the period ending 12 March, 1997" for Macraes Mining Company Ltd., Open File Report MR3498, Crown Minerals, Ministry of Economic Development, NZ Government.


Adrian Fleming, President

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

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