Underworld Resources Increases Land Holdings


Underworld Resources Inc. has significantly expanded its land position in the White gold district through acquisition and additional staking. The majority of this new ground is contiguous with the original claim group hosting the Golden Saddle and Arc gold discoveries.

The majority of new claims were staked by Underworld following the recent gold discovery on the Golden Saddle deposit, located 90 kilometres south of Dawson, the location of the famous Klondike gold rush.

In total, Underworld now holds title to or has title pending on 2,907 quartz mining claims for a total area of 589 square kilometres, doubling the size of the land package.

The 100-per-cent-owned White gold property hosts a significant discovery at the Golden Saddle deposit. Underworld’s continuing drilling program currently has assays pending for a further 23 drill holes at the Golden Saddle deposit and has increased the size of the current drill program at the White gold project to 25,000 metres.

These new claims were staked based on regional geology and geochemistry, exhibiting favourable similarities to the Golden Saddle and Arc discoveries at White Gold.

Additionally, the company has amended the original agreement with Shawn Ryan to acquire a 100-per-cent interest in an additional 646 claims in the White gold district. As compensation for these claims, Underworld will pay the following: Reimburse Mr. Ryan $250 per claim, Issue to Mr. Ryan 200,000 common shares of Underworld on the date that is five business days following the date of acceptance of the TSX Venture Exchange of the agreement, Issue an additional 200,000 common shares of Underworld on or before Aug. 12, 2010, and issue an additional 200,000 common shares of Underworld on or before Aug. 12, 2011, Pay Mr. Ryan $1 per ounce for any ounces of gold on the additional claims that are categorized as reserves or measured or indicated resources in a National Instrument 43-101 technical report publicly distributed by Underworld (payable within 90 days of the date the report is published by Underworld) or at the time of the acquisition of at least 50 per cent of the issued and outstanding voting or equity securities of Underworld by a third party based on an internal technical report prepared by Underworld (payable within 90 days of the acquisition).

Some claims recently acquired are subject to a finder’s fee.

The company is currently evaluating its extensive additional landholdings with reconnaissance mapping, sampling and prospecting. Underworld has carried out systematic ridge and spur soil sampling plus selective grid soil sampling on several of these new areas.

The continuing 2009 exploration program is directed by Adrian Fleming, MAIG, RPGeo, MAusIMM, 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.

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