UW Underworld Resources Inc.

Underworld Resources Inc. (TSX VENTURE: UW) is pleased to announce that additional assay results have been received from the grass roots Discovery at the White Gold Project, Yukon Territory. Recent Assay results include: 4.2 g/t Au over 16.03m and 5.74 g/t Au over 21.58 meters.

Underworld Resources has completed the initial round of core drilling program at the 100% owned White Gold and Black Fox Gold Project, in the Yukon Territory, Canada for a total of 1,243 meters in 13 holes. The July 23rd, 2008 press release (UW 2008 - NR#6) reported the gold discovery at the Golden Saddle prospect of 4.03 g/t Au over 19.58 meters, from 12.99 meters in drill hole WD-004 and 4.58 g/t Au over 16.61 meters, from 14.74 meters in drill hole WD-005. The zone of mineralization discovered in drill holes WD-04 and 5 has now been extended along strike and down-dip in holes holes WD-09 and 13. Recent drilling now indicates that the mineralization extends down dip for 180 meters.

The discovery at Golden Saddle resulted from systematic soil sampling commencing in 2003 which indicated gold values exceeding 0.1 g/t Au over a 1.1 km strike length. A trench completed in 2007 by Underworld at Golden Saddle returned 1.12 g/t Au over 38 meters including 4.7 g/t Au over 5 meters and is the surface expression of the newly discovered north dipping zone. The best grades in the trench occur 20 meters south of the collar of drill holes WD-004 and 005. Mineralization is open for expansion along strike and down-dip.

Highlights of assays received to date are provided in the table below.

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Hole           From (m)    Length (m)    Weighted average gold grade (g/t)
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WD-004           14.49         18.08                                 4.35
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Including        14.49          7.26                                 7.74
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WD-005           13.24         17.66                                 4.38
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Including        14.74          8.13                                 8.01
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WD-009           62.00         16.03                                  4.2
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Including        67.97         10.06                                 6.08
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WD-013           63.65         21.58                                 5.74
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Including        64.65         14.38                                 7.86
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Assays are still pending for several holes at Golden Saddle and will be reported in due course.

Plans, drill hole collar locations and a full table of assay results can be viewed at www.underworldresources.com.

An expanded program of mechanical trenching is in progress to further refine the extent and surface expression of this discovery. Additional drilling is planned to commence in late August. The White Gold and Black Fox properties comprise an aggregate 18,344 acres (approximately 75 km2) 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).

Underworld also announces that Mr. Hamish Greig has been appointed to the position of Vice President of Investor Relations.

Quality Assurance

Underworld has implemented a rigorous QA/QC program using best industry practice. Elements of the program include chain of custody of samples, standard and blank samples are submitted, with drill core sawn in half and shipped in sealed bags to Alaska Assay Laboratories in Fairbanks, Alaska. The ongoing 2008 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 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 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. Hamish Greig (604) 684-4001 (604) 484-7155 (FAX) Email: info@underworldresources.com Website: www.underworldresources.com