Underworld Announces $2.5 Million Non-Brokered Financing

VANCOUVER, BRITISH COLUMBIA–(Marketwire – Sept. 2, 2008) –

NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRES

Underworld Resources Inc. (TSX VENTURE:UW) is pleased to announce that it intends to raise $2.5 million through a non-brokered Private Placement of common shares at a price of $.55 per share.

Underworld intends to use proceeds from the private placement to advance the Company’s projects in Canada and in South America, and for general working capital. The Company will issue 4,545,455 shares at a price of $0.55, subject to approval of the TSX Venture Exchange. A cash finder’s fee of 8% may be payable.

Underworld recently announced a significant, grass-roots gold discovery at the 100% owned White Gold Property in the Yukon Territory, Canada. Recent drill hole intercepts from the Golden Saddle Zone included 5.74 g/t Au over 21.6 meters and 4.35 g/t Au over 18.1 meters (see UW 2008 – NR #6, August 6, 2008). Underworld is currently conducting a second-phase drilling program to investigate multiple gold targets occurring on the property.

Underworld currently has 14,107,105 shares issued and outstanding.

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.

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