Filed by sedaredgar.com - Doral Energy Corp. - Exhibit 10.3






LOAN AGREEMENT

THIS AGREEMENT dated as of the 18th day of July,
2008

BETWEEN:

DORAL ENERGY CORP., a
Nevada corporation with a 
corporate office at 111 N. Sepulveda Blvd., Suite
250, 
Manhattan Beach, CA 90266

(hereinafter called the
"Borrower")

OF THE FIRST PART

AND:

LITTLE BAY CONSULTING
SA, a Panama corporation 
with a corporate office at Urbanicacion
Marbella, 53rd East 
Street, MMG Tower, 16th Floor,
Panama City, Republic of 
Panama

(hereinafter called the "Lender")

OF THE SECOND PART

WHEREAS the Lender has advanced $100,000 (U.S.) to the
Borrower, and the Borrower has agreed to repay such amounts, on the terms and
subject to the conditions set forth in this Agreement;

NOW THEREFORE THIS AGREEMENT WITNESSES THAT in
consideration of the sum of $1.00 paid by each party to the other (the receipt
of which is hereby acknowledged) the parties hereto mutually covenant and agree
as follows:

1. INTERPRETATION

1.1 Definitions. Where used herein or in any amendment
hereto each of the following words and phrases shall have the meanings set forth
as follows:

	 	(a) 	
      "Agreement" means this Loan Agreement including the
      Schedules hereto together with any amendments hereof;

	 	 	 
	 	(c) 	
      "Event of Default" means any event set forth in paragraph
      6.1;

	 	 	 
	 	(d) 	
      "Loan" means the loan of the Principal Sum made by the
      Lender to the Borrower in accordance with this Agreement;

	 	 	 
	 	(e) 	
      “Maturity” means July 18, 2010;

	 	 	 
	 	(f) 	
      "Principal Sum" means the sum of $100,000 (U.S.);
    and

	 	 	 
	 	(g) 	
      “Promissory Note” means the promissory note in the form
      attached hereto as Schedule “A.”



1.2 Number and Gender. Wherever the singular or the
masculine are used herein the same shall be deemed to include the plural or the
feminine or the body politic or corporate where the context or the parties so
require.

1.3 Headings. The headings to the articles, paragraphs,
subparagraphs or clauses of this Agreement are inserted for convenience only and
shall not affect the construction hereof.




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1.4 References. Unless otherwise stated a reference
herein to a numbered or lettered article, paragraph, subparagraph or clause
refers to the article, paragraph, subparagraph or clause bearing that number or
letter in this Agreement. A reference to this Agreement or herein means this
Loan Agreement, including the Schedule hereto, together with any amendments
thereof.

1.5 Currency. All dollar amounts expressed herein refer
to lawful currency of the United States of America.

2. TERMS OF LOAN

2.1 Loan and Repayment. The Lender hereby agrees to lend
to the Borrower the Principal Sum. The Loan shall be made in United States
currency and shall be repaid by the Borrower on or before Maturity.

2.2 Interest. The Borrower shall pay on the amount of
the Principal Sum, interest at a rate of 5% per annum, payable on Maturity. The
Borrower shall pay interest at the aforesaid rate on all overdue interest.

2.3 Advances. The Lender has advanced to the Borrower,
and the Borrower has received, the Principal Sum.

2.4 Pre-Payment. The Borrower may pre-pay all or any
portion of the Loan at any time.

3. PROMISSORY NOTE, EXTENSIONS &
WAIVER

3.1 Loan. To evidence the Loan, the Borrower agrees to
execute the Promissory Note in favor of the Lender.

3.2 Extensions. The Lender may grant extensions as the
Lender may see fit without prejudice to the liability of the Borrower or to the
Lender's rights under this Agreement or under the Promissory Note.

3.3 Waiver. The Lender may waive any breach by the
Borrower of this Agreement or of any default by the Borrower in the observance
or performance of any covenant or condition required to be observed or performed
by the Borrower hereunder or under the Promissory Note. No failure or delay on
the part of the Lender to exercise any right, power or remedy given herein or by
statute or at law or in equity or otherwise shall operate as a waiver thereof,
nor shall any single or partial exercise of any right preclude any other
exercise thereof or the exercise of any other right, power or remedy, nor shall
any waiver by the Lender be deemed to be a waiver of any subsequent similar or
other event.

4. REPRESENTATIONS AND WARRANTIES

4.1 Representations. The Borrower represents and
warrants to the Lender, and acknowledges that the Lender is relying upon such
representations and warranties in entering into this Agreement, as follows:

	 	(a) 	
      the Borrower has the capacity to enter into this
      Agreement, and the execution of this Agreement and the completion of the
      transactions contemplated hereby shall not be in violation any agreement
      to which the Borrower is a party; and

	 	 	 
	 	(b) 	
      upon its execution, the Promissory Note will have been
      duly executed by the Borrower and will be enforceable against the Borrower
      in accordance with its terms.



5. CLOSING ARRANGEMENTS

5.1 Conditions Precedent. The Lender's obligation to
advance the Principal Sum to the Borrower shall be subject to the satisfaction
of the following conditions:




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	 	(a) 	
      the representations and warranties of the Borrower shall
      be true as of the date hereof and as of the dates the Principal Sum is, in
      whole or in part, advanced to the Borrower; and

	 	 	 
	 	(b) 	
      the Borrower shall have complied with all of its
      obligations hereunder.



The foregoing conditions precedent are inserted for the benefit
of the Lender and may be waived in whole or in part by the Lender at any time
prior to closing by delivering to the Borrower written notice to that
effect.

5.2 Time of Closing. The closing of the Loan shall take
place on execution of this Loan Agreement.

5.3 Deliveries by the Borrower. Upon the execution of
this Agreement by the Borrower and the Lender, the Borrower shall deliver or
cause to be delivered to the Lender the Promissory Note.

6. EVENTS OF DEFAULT AND REMEDIES

6.1 Events of Default. Any one or more of the following
events, whether or not any such event shall be voluntary or involuntary or be
effected by operation of law or pursuant to or in compliance with any judgment,
decree or order of any court or any order, rule or regulation of any
administrative or governmental body, shall constitute an Event of Default:

	 	(a) 	
      if the Borrower defaults in the payment of any monies due
      hereunder as and when the same is due;

	 	 	 
	 	(b) 	
      if the Borrower defaults in the observance or performance
      of any other provision hereof;

	 	 	 
	 	(c) 	
      if the Borrower commits an act of bankruptcy or makes a
      general assignment for the benefit of its creditors or otherwise
      acknowledges its insolvency; or

	 	 	 
	 	(d) 	
      if the Borrower makes default in the due payment,
      performance or observance, in whole or in part, of any debt, liability or
      obligation of the Borrower to the Lender, whether secured hereby or
      otherwise.



6.2 Remedies Upon Default. Upon the occurrence of any
Event of Default and at any time thereafter, provided that the Borrower has not
by then remedied such Event of Default, the Lender may, in its discretion, by
notice to the Borrower, declare this Agreement to be in default. At any time
thereafter, while the Borrower shall not have remedied such Event of Default,
the Lender, in its discretion, may:

	 	(a) 	
      declare the Loan and other monies owing by the Borrower
      to the Lender to be immediately due and payable;

	 	 	 
	 	(b) 	
      demand payment from the Borrower and exercise all
      remedies available to the Lender.



7. MISCELLANEOUS

7.1 Notices. Any notice required or permitted to be
given under this Agreement or the Promissory Note shall be in writing and may be
given by delivering same or mailing same by registered mail or sending same by
telegram, telex, telecopier or other similar form of communication to the
following addresses:


	The Borrower: 	DORAL ENERGY CORP. 
	  	111 N. Sepulveda Blvd., Suite 250 
	  	Manhattan Beach, CA 90266 
	  	  
	  	Fax: (253) 541-7833








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	The Lender: 	Urbanicacion Marbella, 53rd East
      Street 
	  	MMG Tower, 16th Floor 
	  	Panama City, Republic of Panama 
	  	  
	  	Attention: Jose E. Silva, President 
	  	Fax: 



Any notice so given shall:

	 	(a) 	
      if delivered, be deemed to have been given at the time of
      delivery;

	 	 	 
	 	(b) 	
      if mailed by registered mail, be deemed to have been
      given on the fourth business day after and excluding the day on which it
      was so mailed, but should there be, at the time of mailing or between the
      time of mailing and the deemed receipt of the notice, a mail strike,
      slowdown or other labor dispute which might affect the delivery of such
      notice by the mails, then such notice shall be only effective if actually
      delivered; and

	 	 	 
	 	(c) 	
      if sent by telegraph, telex, telecopier or other similar
      form of communication, be deemed to have been given or made on the first
      business day following the day on which it was
sent.



Any party may give written notice of a change of address in the
aforesaid manner, in which event such notice shall thereafter be given to such
party as above provided at such changed address.

7.2 Amendments. Neither this Agreement nor any provision
hereof may be amended, waived, discharged or terminated orally, but only by an
instrument in writing signed by the party against whom enforcement of the
amendment, waiver, discharge or termination is sought.

7.3 Entire Agreement. This Agreement embodies the entire
agreement and understanding between the parties hereto and supersedes all prior
agreements and undertakings, whether oral or written, pertaining to the subject
matter hereof.

7.4 Action on Business Day. If the date upon which any
act or payment hereunder is required to be done or made falls on a day which is
not a business day, then such act or payment shall be performed or made on the
first business day next following.

7.5 No Merger of Judgment. The taking of a judgment on
any covenant contained herein or on any covenant set forth in any other security
for payment of any indebtedness hereunder or performance of the obligations
hereby secured shall not operate as a merger of any such covenant or affect the
Lender's right to interest at the rate and times provided in this Agreement on
any money owing to the Lender under any covenant herein or therein set forth and
such judgment shall provide that interest thereon shall be calculated at the
same rate and in the same manner as herein provided until such judgment is fully
paid and satisfied.

7.6 Severability. If any one or more of the provisions
of this Agreement should be invalid, illegal or unenforceable in any respect in
any jurisdiction, the validity, legality or enforceability of such provision
shall not in any way be affected or impaired thereby in any other jurisdiction
and the validity, legality and enforceability of the remaining provisions
contained herein shall not in any way be affected or impaired thereby.

7.7 Successors and Assigns. This Agreement shall enure
to the benefit of and be binding upon all parties hereto and their respective
heirs, personal representatives, successors and assigns, as the case may be.

7.8 Governing Law. This Agreement shall be governed by
and be construed in accordance with the laws of the State of Nevada and the
parties hereto agree to submit to the jurisdiction of the courts of Nevada with
respect to any legal proceedings arising herefrom.




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7.9 Independent Legal Advice. This Agreement has been
prepared by O’Neill Law Group PLLC acting solely on behalf of the Borrower and
the Lender acknowledges that it has been advised to obtain independent legal
advice.

7.10 Time. Time is of the essence of this Agreement.

7.11 Headings. The headings of the paragraphs of this
Agreement are inserted for convenience only and do not define, limit, enlarge or
alter the meanings of any paragraph or clause herein.

7.12 Counterparts. This agreement may be executed in one
or more counter-parts, each of which so executed shall constitute an original
and all of which together shall constitute one and the same agreement.

IN WITNESS WHEREOF the parties hereto have caused this
Agreement to be duly executed and delivered as of the day and year first written
above.

	THE BORROWER: 
	  
	DORAL ENERGY CORP. 
	by its authorized signatory: 
	  
	  
	  
	/s/ Paul C. Kirkitelos 	 
	Paul C. Kirkitelos 
	Title: President 
	  
	  
	  
	THE LENDER: 
	  
	LITTLE BAY CONSULTING SA 
	by its authorized signatories: 
	  
	  
	  
	/s/ Jose E.
      Silva 	 
	Jose E. Silva, President 
	  
	  
	  
	/s/ Dianeth M.
      de Ospino 	 
	Dianeth M. de Ospino, Secretary
  






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SCHEDULE “A”

FORM OF PROMISSORY NOTE

PROMISSORY NOTE

	EXECUTED BY: 	DORAL ENERGY CORP. 
	  	(the "Borrower") 
	 	 
	IN FAVOR OF: 	LITTLE BAY CONSULTING SA 
	  	(the "Lender") 
	 	 
	PRINCIPAL AMOUNT: 	$100,000 (U.S.) 
	 	 
	DUE DATE: 	July 18, 2010 
	 	 


FOR VALUE RECEIVED the Borrower hereby promises to pay
to or to the order of the Lender on or before July 18, 2010, the principal sum
of $100,000 (U.S.), together with interest thereon at the rate of 5% per annum,
calculated and compounded annually, both before and after maturity from the date
hereof.

The Borrower waives presentment, demand, notice, protest and
notice of dishonour and all other demands and notices in connection with the
delivery, acceptance, performance, default or enforcement of this Promissory
Note.

The Borrower agrees this Promissory Note may be negotiated,
assigned, discounted, or pledged by the Lender and in every case payment will be
made to the holder of this Promissory Note instead of the Lender upon notice
being given by the holder to the undersigned, and no holder of this Promissory
Note will be affected by the state of accounts between the undersigned and the
Lender or by any equities existing between the undersigned and the Lender and
will be deemed to be a holder in due course and for the value of the Promissory
Note held by him.

DATED at __________ this ___ day of July, 2008.

DORAL ENERGY CORP. by its authorized signatory:

	 	 
	Paul C. Kirkitelos, President