Underworld Makes New Yukon Gold Discovery: 9.4 g/t Au Over 5.7 Meters and 4.6 g/t Au Over 16.6 Meters

VANCOUVER, BRITISH COLUMBIA, Jul 23 (MARKET WIRE) --
Underworld Resources Inc. (TSX VENTURE: UW) is pleased to announce
initial assay results from 100% owned White Gold and Black Fox Gold
Projects, in the Yukon Territory, Canada. The diamond drill program is
still underway and additional assay results are expected shortly.

Drill hole WD-004 intersected 4.03 g/t Au over 19.58 meters, from 12.99
meters, including 9.43 g/t Au over 5.76 meters. Drill hole WD-005
intersected 4.58 g/t Au over 16.61 meters, from 14.74 meters, including
11.62 g/t Au over 5.13 meters and including 19.14 g/t Au over 2.65
meters. These initial discovery holes at the Golden Saddle Prospect
encountered a shallow dipping quartz breccia vein associated with a
thrust fault. The assays are from priority samples of quartz breccia
containing visible gold from the upper part of each hole. Both holes were
drilled from the same set up with WD-004 at minus 45 degrees and WD-005
at minus 65 degrees. These holes for which partial results are available
plus holes WD-009 and WD-010 have all been drilled to test a soil
geochemistry anomaly which identified the Golden Saddle target and is
characterized by gold in soil values exceeding 80 ppb over a strike
length of 2.2 kilometres.

Holes WD08-04 and 05 at Golden Saddle were located to evaluate a trench
sampled in 2007 that returned a 38 m wide zone of mineralization
averaging 1.12 g/t Au, including 4.7 g/t over 5 m and a minimum grade of
0.1 g/t over 0.3 m. The near surface zone of breccia with strong silica -
albite alteration and oxidized, disseminated pyrite was prioritized for
sampling and assaying and returned the gold grades reported above. In
Hole WD-004 the zone of breccia, alteration and mineralization extends to
a depth of 50 m, albeit less strongly developed than the interval
reported above which is to a depth of 32.57 meters. The distribution of
this mineralization was interpreted as a shallow north dipping zone.
WD-009 is a 60 m step out down-dip from holes WD-004 and 5, and
intersected similar but unoxidized brecciated, quartz pyrite stockwork
within altered gneiss from 68-82 m. Hole WD-010 is a further step out 60
m further north of WD-009 but was abandoned at 122 meters due to drilling
problems. This shallow dipping breccia vein associated with a thrust
fault bears similarities to Teck Cominco/Sumitomo's Pogo Mine in Alaska,
also located within the Tintina Gold Belt.

Plans with drill hole locations and a cross section can be viewed at
www.underworldresources.com.

Additionally, holes WD-001 to 3 were completed at Ryan Showing to test
the quartz veins which had returned encouraging gold grades from sampling
during the summer program in 2007 (see UW 2008 - NR#4). Hole WD-006 was
drilled to test an IP geophysical target, and WD-007 and 8 were drilled
at Trench C, all testing disseminated sulphide mineralization within an
extensive multielement soil anomaly at the Quartz-Thrust zone. Assays are
pending for all additional drill holes. The Ryan, Golden Saddle, and
Quartz-Thrust anomalies are located over one kilometer apart, within a
broad soil anomaly that extends for over 6,000 meters.

The White Gold and Black Fox properties comprise an aggregate 11,850
acres and are located 95 kilometres south of Dawson City in Yukon
Territory. Underworld has an option to earn a 100% interest in the
Projects (see UW 2007 NR#3, May 16, 2007). Maps with the 2007 results are
available at www.underworldresources.com.

Quality Assurance

Underworld has put in place a rigorous QA/QC program using best industry
practice. Elements of the program include chain of custody of samples and
insertion of standard and blank samples, with drill core sawn in half and
shipped in sealed bags to Alaska Assay Laboratories in Fairbanks, Alaska.
The ongoing 2008 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 NI43-101. Mr. Fleming prepared, and
approves of the content of this release.

Underworld Resources is a well-structured junior exploration company
targeting base and precious metals in the Americas and New Zealand.

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
programs 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
Director
(604) 684-4001
(604) 484-7155 (FAX)
Email: info@underworldresources.com
Website: www.underworldresources.com

Copyright 2008, Market Wire, All rights reserved.

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