Underworld Resources Inc.

Underworld Resources Inc.

October 19, 2009 09:00 ET

Underworld Step-Out Holes Expand Golden Saddle Deposit, Including 3.68 g/t Au Over 91.3 meters

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 19, 2009) - Underworld Resources Inc. (TSX VENTURE:UW) is pleased to announce results from the White Gold Property, Yukon, including 17 drill holes from the Golden Saddle Zone. At Golden Saddle, mineralization remains open to expansion along strike to the northeast and at depth.

Highlights of the most recent assays from the Golden Saddle Zone include:

Hole ID Weighted avg. grade Length
(g/t Au) (m)
WD09-91 3.68 g/t Au 91.28 meters
WD09-94 1.01 g/t Au 104.58 meters
WD09-96 1.94 g/t Au 50.00 meters
WD09-99 1.73 g/t Au 98.00 meters
WD09-101 2.10 g/t Au 93.88 meters

The most recent results include step-out holes that have expanded the Golden Saddle Deposit along strike to the northeast, and down-dip. In the eastern portion of the Deposit, thick intercepts of gold mineralization continue to be encountered by step-out holes with mineralization hosted by mafic metavolcanics in contrast to felsic metaintrusive which were encountered previously.

Drill Hole WD09-91, returned a near surface intercept of 91.28 meters averaging 3.68 g/t Au. Drill Hole WD09-94 returned 104.58 meters averaging 1.01 g/t Au, and was terminated still in mineralization Drill hole WD09-99, which intersected 98.0 meters averaging 1.73 g/t Au, and WD09-101, which intersected 93.88 meters averaging 2.10 g/t Au. Both drill holes were completed from the same set-up and are the most northeasterly holes reported to-date. Drill holes WD09-72 and WD09-80 are step out holes down dip at Golden Saddle.

An additional five holes are pending assay at Golden Saddle and three holes are pending assay on the McKinnon zone. Underworld anticipates completing an initial NI 43-101 Resource Estimate for Golden Saddle by January 2010, using completed multiple infill holes at 50 meter spacings.

An updated drill plan and cross-sections will be available shortly at www.underworldresources.com.

Most recent drill results include:

Hole ID From (m) To (m) Length (m) Au (g/t)
Golden Saddle
WD09-83 126.78 133.43 6.65 1.01
WD09-86 292.00 300.20 8.20 2.85
including 299.00 300.20 1.20 13.65
WD09-87 224.50 247.20 22.70 2.20
including 235.15 247.20 12.05 3.21
WD09-88 No Significant intercepts
WD09-89 101.33 108.50 7.17 1.82
and 300.50 305.61 5.11 1.06
WD09-90 56.00 65.10 9.10 0.99
WD09-91 70.22 161.50 91.28 3.68
including 140.50 157.00 16.50 6.28
WD09-92 9.24 22.72 13.48 2.55
WD09-93 349.00 425.00 76.00 1.05
including 393.00 423.38 30.38 1.80
WD09-94 154.50 259.08 104.58 1.01
including 219.00 259.08 40.08 1.78
WD09-95 15.24 55.00 39.76 2.38
including 17.50 36.50 19.00 3.24
WD09-96 188.00 238.00 50.00 1.94
including 204.50 237.39 32.89 2.32
WD09-97 399.50 423.03 23.53 1.19
including 418.00 423.03 5.03 4.60
WD09-98 257.56 265.00 7.44 3.70
WD09-99 260.00 358.00 98.00 1.73
including 260.00 279.00 19.00 6.29
WD09-100 402.50 430.00 27.50 1.23
including 280.62 304.00 23.38 4.86
WD09-101 280.62 374.5 93.88 2.10
including 280.62 304 23.38 4.86

DN09-02 No Significant intercepts
DN09-03 120.48 121.21 0.73 21.5

South Donahue
SD09-01 No Significant intercepts
SD09-02 No Significant intercepts
SD09-03 No Significant intercepts
SD09-04 No Significant intercepts
SD09-05 No Significant intercepts

(i)True Widths are estimated to be between 70% and 100% of drilled interval

The 2009 exploration program at the White Gold Project is now complete. The program included 25,670 meters of drilling, including 19,023 meters in 60 holes at the Golden Saddle Deposit.

Intrusive-related gold mineralization at the Golden Saddle Zone is preferentially hosted within metamorphosed felsic intrusive units, as well as felsic and mafic metavolcanic rocks. Gold mineralization is associated with quartz veins, stockwork and breccia zones, as well as pyrite veinlettes and disseminations. The alteration assemblage includes pervasive K-spar, carbonate, sericite and silicification. The main mineralized zone at Golden Saddle strikes to the northeast, with a gentle to moderate dip to the northwest.

The objective of the 2009 drill program at Golden Saddle and the Arc Zone was to expand the known extent of mineralization in all directions, with the intent to complete an initial NI 43-101 compliant resource estimates for both Zones. Drill spacing was nominally 50 and 100 meter centers at Golden Saddle and Arc, respectively.

Three drill holes were completed at the Donahue Zone, and five holes were completed at the South Donahue Zone. These targets are located 3km's and 4.5km's southeast of the Golden Saddle Zone, respectively. They occur within similar host rocks to Golden Saddle with a similar geochemical signature. At Donahue, a high-grade zone averaging 21.5 g/t Au over 0.73 meters was encountered in DN09-03. At South Donahue, multiple one to five meter thick quartz veins were intersected within an altered granitoid, however no significant values were returned.

At the Golden Saddle Zone, a total of 23 samples from six 2008 drill holes averaging 6.60 g/t Au have been analyzed by bottle roll cyanide leach methodology to determine metallurgical behaviour. Average gold recovery was 85.5%, ranging from 65.7 to 93.7%. Samples included near-surface oxidized material, partially oxidized, and unoxidized material. Unoxidized and partially oxidized mineralization returned higher recoveries, averaging 87.7%, with oxidized mineralization averaging 73.6%. Additionally, higher grade individual samples, over 10 g/t Au, typically displayed slightly lower recoveries averaging 83.7%. This is potentially due to reduced leaching with coarse gold, which could possibly be amenable to gravity separation to boost recoveries. (see UW NR 18 dated September 30, 09)

Quality Assurance

Underworld has implemented a rigorous QA/QC program at the White Gold Property using best industry practice. Elements of the program include: chain of custody of samples, insertion of standard and blank samples, and check assays. Drill core is sawn in half and shipped in sealed bags to ALS Chemex Laboratories in Vancouver, B.C. Check assays are completed by Acme Laboratories, Vancouver.

The ongoing 2009 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 NI 43-101. Mr. Fleming prepared, and approves of the content of this release.

Underworld Resources is a well-structured junior exploration company focused on expanding its new gold discovery in the Yukon. For further information contact Jeff Sundar, Investor Relations at 604-684-4001.


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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