Underworld's Optimized Metallurgical Testwork Returns Excellent Gold Recoveries at White Gold Property

  Underworld Resources Inc. (TSX VENTURE: UW) is pleased to announce the results of a comprehensive metallurgical testing program on samples from the Golden Saddle and Arc deposits, at the 100% owned White Gold Property, Yukon.

Recovery ranged from 78% to 97% at the Golden Saddle Zone and the comprehensive metallurgical testing indicate that 92% or better gold recovery can be expected with a conventional plant at Golden Saddle.

Five 72-hr bottle-roll cyanidation tests were carried out on the samples which assessed gold recoveries based on variable grind sizes and cyanidation intensity. CIL cyanidation boosted gold recoveries up to 98%. Gravity recovery tests showed that from 6% to 9% of contained gold could report to a gravity concentrator prior to cyanidation. Near-surface oxidized material returned 94% gold recovery. Surface oxidation due to weathering at Golden Saddle ranges from 10 to 40 meters, averaging about 20 meters below surface. Local partial oxidation occurs near post-mineralization fault zones. The majority of mineralization encountered to-date at Golden Saddle is unoxidized.

Test work included several conventional processing options including: gravity gold recovery, bottle-roll cyanidation, carbon in leach (CIL) cyanidation and flotation. The impact of grind size on cyanidation tests was also investigated. Test work for the Golden Saddle Deposit was completed on core samples exhibiting different mineralization styles, including: oxide, sulfide, mixed oxide-sulfide material, as well as a low grade composite sample. Testing was also completed on a composite sample from the Arc deposit, located one kilometer south of Golden Saddle.

At the Arc zone, a 72-hr bottle roll and CIL cyanidation tests on a composite sample suggest gold recoveries ranging from 28% to 37%, however, floatation tests boost gold recoveries to 86%. Cyanidation at the Arc zone is impacted by graphite, which is not present at the Golden Saddle Zone.

The metallurgical test work was completed by Inspectorate PRA Labs of Vancouver, B.C. Bottle roll cyanide leach tests were performed for a target grind size of 80% passing 105 microns in 1 g/L NaCN. Further details of the test work can be accessed on the Company's website at www.underworldresources.com.

The contrasting mineralogy and gold recoveries at Golden Saddle and Arc are due to varying host rock lithologies. Golden Saddle occurs within metavolcanic and metaintrusive rocks, with gold mineralization associated with pyrite veining, silicification, quartz breccias and stockworks, whereas the Arc Deposit is hosted by metasedimentary rocks, and is typified by hydrothermal breccias and silicification.

Underworld is currently working on an NI-43-101 compliant initial resource estimate for the White Gold Property, results of which are expected within the next month.

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 being undertaken by Acme Laboratories, Vancouver. Optimized metallurgical testing is being undertaken by Inspectorate PRA laboratories, Vancouver, under the guidance of JDS Energy & Mining Inc.

The Company's Exploration Program is being 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.

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.

Contacts: Underworld Resources Inc. Jeff Sundar Investor Relations 604-684-4001 604-484-7155 (FAX) Email: [e-mail] Website: www.underworldresources.com