Document:

Exhibit 10.1

                              Texhoma Energy, Inc.
                              --------------------
                2200 Post Oak Blvd Ste 340, Houston, Texas 77056
                    Phone:  713-457-0610   Fax:  713-201-0387

                                 PROMMISORY NOTE
                                 ---------------
                                       AND
                                       ---
                               SECURITY AGREEMENT
                               ------------------

Between

POLARIS HOLDINGS, INC.
Suite 120, 2411 Fountainview Drive
Houston, TX 77057

and

TEXHOMA ENERGY, INC.
Suite 320, 5000 Post Oak Blvd.
Houston, Texas 77056

Texhoma  Energy,  Inc (Texhoma) has requested a loan of US$ 250,000 (TWO HUNDRED
AND  FIFTY  THOUSAND  UNITED  STATES  DOLLARS)  (the  "Loan-funds") from Polaris
Holdings,  Inc.  (Polaris).

Texhoma  has  an  11%  Working  Interest  in  the Clovelly prospect and has been
cash-called  by  ORX Resources, Inc (ORX), the operator of the property, for the
drilling  of  the  Allain-LeBreton No, 2 Well. Polaris has agreed to deposit the
Loan-funds  directly  with  ORX  as a payment towards the cash call on behalf of
Texhoma.  Banking  details  have  been  provided  to  Polaris.

This  letter is both a Corporate Guarantee from Texhoma that it will fully repay
the  Loan-funds  on  or  before August 10, 2006 with $100,000 partial payment by
June  15,  2006.  The  loan  is  carried  at  an  interest  of  12%  P.A  .

Texhoma  will  further  commit  following  payments to Polaris until the loan is
repaid  in  full:
     -    2/3  of  net  receipts from stock sales - less portion paid to Jostein
          Hauge
     -    1/3 of  Texhoma's  share  of  production  income  (both  Kilrush  and
          Little  White  Lake  properties)

For  the  provision  of  the  Loan-funds  Polaris  is  granted  the  Option  to
participation  in  the Clovelly Prospect for a 3% Working Interest, i.e. Polaris
can elect to participate in the project after reviewing the electric logs of the
Allain-LeBreton  No.  2  Well  at  the target depth but before completion of the
well. If Polaris elects to participate, Texhoma will surrender 3/11th of its 11%
Working Interest in the Project and in return Polaris will reimburse Texhoma for
the  drilling  cost  incurred  by  Texhoma  for the 3% Working Interest from the
commencement  of  the  drilling  operations.  The  amount  so determined will be
deducted  from  the  repayment  of  the  Loan-funds.

In  the  event that the Loan-funds are not repaid as per Agreement, Texhoma will
assign  100%  of  its  cash flow from the Texaurus Partnership to Polaris or its
nominee  until  the  loan  is  repaid  in  full.

<PAGE>

EXECUTED by the Parties this 8th day of June, 2006.

TEXHOMA ENERGY, INC.
/s/ Max Maxwell                  /s/ Frank Jacobs
--------------------------       --------------------------
Max Maxwell                      Frank A. Jacobs
President & CEO                  Secretary
-------------------------        --------------------------

POLARIS HOLDINGS, INC.
/s/ Ingolf Grinde                /s/ Ingolf Grinde
-------------------------        --------------------------
Ingolf Grinde                    Director/Secretary
President                        Ingolf Grinde
-------------------------        --------------------------
                                 Print NameExhibit 10.1

328 - 550 Burrard Street, Vancouver, B.C. V6C 2B5 TEL. 604-685-8311
FAX 604-685-1682       SYR:TSXV

                                                                    May 31, 2006

Konigsberg Corporation
90 Reynolds Street
Oakville Ontario
L6J 3K2

Attention: Adam Cegielski

Dear Mr Cegielski:

RE: OPTION AGREEMENT BETWEEN SYDNEY RESOURCE CORPORATION ACTING THROUGH AND ON
    BEHALF OF IT'S WHOLLY OWNED SUBSIDIARY GOLONDRINA S DE RL DE CV  ("SYDNEY"
    OR "OPTIONOR") AND KONIGSBERG CORPORATION ("KONIGSBERG" OR "OPTIONEE,").

This  option  agreement  (the  "Agreement") sets out the terms and conditions by
which the Optionor, a corporation incorporated under the laws of the Province of
British  Columbia in the case of Sydney and under the laws of Mexico in the case
of  Golondrina, agrees to grant to Konigsberg, a company incorporated  under the
laws  of the State of Nevada, the sole and exclusive right and option to acquire
up  to  a 75% undivided right, title and interest in and to the YOQUIVO Property
(the  "Option"),  consisting  of  6 mineral concessions, located in the state of
Sonora,  Mexico,  as  described  in Schedule A attached hereto (the "Property").
Konigsberg  acknowledges  the  underlying  agreement  for  the Property attached
hereto  as  Schedule  B  (the  "Underlying  Agreement").

This Agreement, save as indicated below, is subject to the approval of the Board
of  Directors  of  Sydney  and Golondrina with the time for such approval not to
exceed  10  business  days from the date this Agreement is executed, approval of
this  agreement  by  the  underlying  property  vendor  as  per the terms of the
Underlying  Agreement  the time for such approval not to exceed 10 business days
from the date of this Agreement is executed and applicable regulatory approvals.
The  date  of  this  Agreement  shall  be deemed to be the date of the Letter of
Intent  which  has  been  accepted  by  both  parties  and which is included for
reference  as  Schedule  D. This Agreement shall replace any previous agreements
between  the parties and shall constitute the full agreement between the parties
save and except for a formal joint venture agreement which shall be entered into
as  detailed  in  this  Agreement.

<PAGE>

1.   THE  OPTION

     .1.  The Optionor  hereby  grants  to  Konigsberg  the  sole, exclusive and
          irrevocable  right  and  option (First Option) to acquire an undivided
          50%  right,  title  and  interest  in  and  to  the  Property  by:

          .1.  Making,  in  favour  of  the  Optionor,  the  following  optional
               cash  payments  -  all payments to be made in U.S. Dollars unless
               otherwise  specified:

               (A)  $25,000  within  5  days  upon  signing  of  the  Letter  of
                    Intent  (paid);

               (B)  $75,000  within  30  days  of  the  date  of  signing  the
                    Letter  of  Intent  (paid);

                    for  total  aggregate  cash  payments  of  $100,000,  which
                    -----------------------------------------------------------
                    Optionor  acknowledges  has  been  paid  in  full.
                    -------------------------------------------------

     .2.  Issuing  in  favour  of  the  Optionor  the following number of common
          shares  of  Konigsberg,  subject  only  to  those trading restrictions
          required  by  Konigsberg's listing exchange at the time of issue or as
          required  by  law  or  regulation:

               (A)  Within  30  days  of  the  date  of  the  Letter  of  Intent
                    500,000  common shares of Konigsberg (issued and delivered);

               (B)  Within  12  months  of  the  date  of  signing of the Letter
                    of  Intent  500,000  common  shares  of  Konigsberg.

     For  total  aggregate  share  payments  of  1,000,000  shares,  of  which
     ---------------------------------------------------------------------------
     Optionor  acknowledges  500,000  shares have been issued and delivered. All
     ---------------------------------------------------------------------------
     share  certificates  issued  pursuant to this agreement shall have a 1 year
     ---------------------------------------------------------------------------
     hold  period  from  date  of  issue.
     -----------------------------------

     1.1.3.  Completing  the  following  cumulative  Exploration  Expenditures
     totaling  $1,000,000.00  over  24  months  as  defined  below:

               (A)  $250,000  in  cumulative  exploration  expenditures  within
                    6 months of the date of this Agreement which shall be a firm
                    commitment  on  the  part  of  Konigsberg;

               (B)  $600,000.00  in  cumulative  exploration  expenditures
                    within  12  months  of  the  date  of  this  Agreement;

               (C)  $1,000,000.00  in  cumulative  exploration  expenditures
                    within  24  months  of  the  date  of  this  Agreement;

                    For  a  total  cumulative  Exploration  Expenditures  of
                    --------------------------------------------------------
                    $1,000,000.
                    -----------

The  initial cash payment of $100,000, the issuance of 500,000 common shares and
the initial exploration expenditure of $250,000.00 shall be a binding commitment

<PAGE>

on  the  part  of Konigsberg.  All other payments and expenditure commitments as
set  out  herein  shall  be at the option of Konigsberg but shall be required to
keep  this  agreement  in  good  standing.

Konigsberg  further  agrees to be responsible for making, through the offices of
Sydney  and  Golondrina,  all  necessary  property  and tax payments to keep the
property  in  good  standing with respect to the Underlying Agreement during the
earn  in  period  of  the  first  option.   Funds to meet said payments shall be
delivered  30  days  in  advance  of  the appropriate due date to the account of
Sydney  Resource  Corporation  in  order  to  facilitate the timely exchange and
transfer  into  the  account of Golondrina. Konigsberg shall further agree to be
bound  by  the  terms  and  conditions  of  the  Underlying  Agreement.

Once Konigsberg has vested its initial 50% interest in the project and delivered
notice  to Sydney that it has chosen not to proceed with the exercise of its 2nd
Option  as  outlined  below  the  parties  shall  enter  into  the joint venture
agreement  as  to  be  set  out  in  Schedule  C  and shall share equally in all
exploration  costs  and  payments  subject  to  standard  dilution  terms.

It  is  understood  that Sydney will act as operator during the earn-in phase of
the  agreement  and  shall  be entitled to charge a management fee of 10% on all
property exploration expenditures and related head office overhead. A management
committee consisting of two representatives of each Company shall be formed upon
acceptance  of  the  terms  of  this  Agreement.  As  operator  Sydney  will  be
responsible  for  proposal  of exploration programs to the management committee.
Konigsberg as funding partner shall be responsible for funding, in full, any and
all  exploration programs approved by the management committee in advance of the
commencement  of  exploration.

Upon  Konigsberg  successfully  exercising the first option, Sydney shall hereby
grant  to  Konigsberg the sole, exclusive and irrevocable right and option  (the
2nd  Option)  to  earn  an  additional  25%  undivided right, title and interest
(cumulative 75%), subject to back-in provisions in favour of Sydney as indicated
below,  under  the  following  terms  and  conditions:

          A)   Within  60  days  of  having  vested  an  initial 50% interest in
               the  property  making  a  cash  payment  in  favour  of Sydney of
               $250,000;
          B)   Within  60  days  of  having  vested  an  initial 50% interest in
               the  property  issuing  to  Sydney an additional 1,000,000 common
               shares  of  Konigsberg
          C)   Completing  an  additional  $1,500,000  in  exploration
               expenditures on the property within an additional 24 month period
               and  making  the necessary cash payments to the vendor as per the
               terms  and  conditions  of  the  Underlying  Agreement.

Should  Konigsberg  successfully  exercise the 2nd Option, Sydney shall have the
one-time  right,  exercisable within 90 days of Konigsberg having vested at 75%,
via  the  2nd  Option,  to  back  into  a 50% interest in the property ("Back-In
Right")  by  making  a  single cash payment in favour of Konigsberg equal to the
greater  of  (a)  two (2) times Konigsberg's cumulative exploration expenditures
incurred  under  the terms of the 2nd Option, exclusive of acquisition payments,
or  (b)  should the value of the Konigsberg shares issued under the terms of the
2nd  Option  exceed  $1,500,000  on the date of exercise of the back in right, a
total  of  two (2) times Konigsberg cumulative exploration expenditures incurred
under the terms of the 2nd Option, exclusive of acquisition costs, plus one half

<PAGE>

of the amount by which Konigsberg's shares exceed $1,500,000.  Said payments are
to  be  due  within  10 days of written notice delivered to Konigsberg by Sydney
that  it  has  chosen  to  exercise  its  Back-In  Right.

Konigsberg shall have the additional right, exercisable within seven (7) days of
receipt  of  notice  of  Sydney's  decision  to  exercise  its Back-In Right, to
extinguish  said  right  through  the issuance of an additional 1,000,000 common
shares  of  Konigsberg  in Sydney's favor. In this event a joint venture will be
formed  between  the parties under a joint venture agreement which is set out as
schedule  C  to  this  agreement.

During  the  duration  of  the earn-in phase of this Agreement (First and Second
Options), or until such time as a joint venture is formalized in accordance with
schedule  C,  Konigsberg  will  be  responsible for making all payments required
under  the  terms  of the Underlying Agreement between the Optionor and Mr. Jose
Maria  Dozal Rascon as outlined in Schedule B. Upon formation of a joint venture
the  parties  shall  agree to make said payments on a pro-rata basis relative to
their  working  interest  in  the  project  at the time of the payment. If it is
decided  by  the parties to complete a Feasibility Study, as defined by Canadian
National  Policy Instrument 43-101, the parties shall share the expenses of same
on  a  pro-rata  basis.

During  the duration of the earn-in phase of this Agreement (First and Second ),
or  until such time as a joint venture is formalized in accordance with Schedule
C,  title  to  the  Property  will  remain  registered  with  the Optionor. Upon
formation  of  a joint venture, the Optionor shall transfer to Konigsberg or its
Mexican registered subsidiary and caused to be registered in accordance with the
laws  of Mexico that percentage interest which Konigsberg has earned at the time
of  formation  of  the joint venture. All costs associated with the transfer and
register  of  said  interest  to  be  borne  by  Konigsberg  in  their entirety.

2.   DEFINITIONS

     .1.  "Exploration  Expenditures"  shall  mean  all  expenditures  for  the
          exploration  of  the Property including but not limited to, geological
          mapping,  sampling,  assaying,  geophysical  and  geochemical surveys,
          field  support  costs,  drilling  and  mobilization  of  equipment,
          metallurgical  sampling,  report  writing  and  tenure  maintenance.

     .2.  "Feasibility  Study"  shall  mean  a  report  completed  under  the
          supervision of a qualified person, as per Canadian National Instrument
          43-101,  that  outlines  the  reserves  and resources on the Property,
          potential  mining  methods  and  plan,  metallurgical  extraction  of
          valuable  minerals,  a  proposed  list  of  equipment  and  facilities
          required  for  the  proposed  mining  plan  and processing facilities,
          environmental  and  permitting  considerations  and requirements and a
          reclamation  and remediation proposal accompanied with an estimate and
          schedule  of the cost of the foregoing both for capital and operations
          and  a  schedule  of  production for valuable minerals and a financial
          model  of detail suitable for a financial institution. The cost of the
          feasibility  study  shall be shared on a pro rata basis subject to the
          terms  and  conditions  outlined  above.

<PAGE>

3.   RIGHT  OF  ENTRY

     Provided  this  Agreement  is  in  good  standing, Konigsberg, its servants
     and  agents  (persons authorized by Konigsberg) and any assigns, shall have
     the  right  of access to and from the Property and the right to enter upon,
     examine  all  work  completed by the operator, sample as may be required to
     confirm  the  work  completed  by  the  operator,  explore  and develop the
     Property  in  conjunction  with  the  operator  and  fund  the  Exploration
     Expenditures and undertake such other activities as may be required to vest
     its  interests  hereunder  in  such  a  manner  as  Konigsberg, in its sole
     discretion,  may  deem  advisable.

4.   REPRESENTATIONS  AND  WARRANTIES  OF  THE  OPTIONOR

     The  Optionor  represents  and  warrants  to, and covenants with Konigsberg
     that  to  the  best  of  its  knowledge and where a party acting reasonably
     should  have  known:

     4.1  the Property  is  accurately  described  in  Schedule  A,  and  is
          presently  in  good  standing  under  the  applicable  laws of Mexico;

     4.2  there are  no  encumbrances,  royalties  or  liens  of  any  kind
          associated  in  any  way,  save  as  outline  in  Schedule B, with the
          Property;

     4.3  the Optionor  has  the  exclusive  right  to enter into this Agreement
          and  to  dispose of an interest in the Property in accordance with the
          terms  and  conditions  of this Agreement subject only the approval of
          the  underlying  vendor said approval not to be unreasonably withheld;

     4.4  the Underlying  Agreement  is  in  good  standing and is in full force
          and  effect;

     4.5  the Underlying  Agreement  has  been  accepted  for  filing by the TSX
          Venture  Exchange  and  all other applicable regulatory approvals have
          been  received  in  respect  of  the  Property;

     4.6  there is  no  adverse  claim  or  challenge  against  or  to  the
          ownership  of the Property, nor is there any outstanding agreements or
          options  to  acquire  or  purchase the Property or any portion thereof
          other  than  the  Underlying  Agreement,  and  no  person,  firm  or
          corporation has any proprietary or possessory interest in the Property
          other  than  the  Optionor  and  as provided for under this Agreement;

     4.7  there are  no  reclamation  or  rehabilitation  requirements
          outstanding  on the Property of which Konisberg has not or will not be
          advised  and  all  work  has  been  carried out in accordance with all
          applicable  laws  of  the  federal  mining  law  of  Mexico;

     4.8  The Optionor  is  not  aware  of  any  material  fact  or circumstance
          which  has  not been disclosed to Konigsberg which should be disclosed
          in order to prevent the representations and warranties of the Optionor
          provided  in  this  Agreement  from  being  misleading;  and

     4.9  the Optionor  has,  or  will  throughout  the  term of this agreement,
          advised  Konigsberg  of  all  of  the  material  information about the
          Property  generally  and  specifically  as  to  its mineral potential.

     The  representations  and  warranties  of  the  Optionor  herein before set
     out  are  conditions  on  which Konigsberg has relied in entering into this
     Agreement  and will survive the acquisition of any interest in the Property
     by Konigsberg and/or the termination of this Agreement. The Optionor hereby
     indemnifies  and  saves  Konigsberg  harmless from all loss, damage, costs,

<PAGE>

     actions  and  suits  arising out of or in connection with any breach of any
     representation,  warranty,  covenant,  agreement  or  condition made by the
     Optionor,  that  the Optionor had knowledge of, or acting reasonably should
     have  had  knowledge  of  and  contained  in  this  agreement

5.   REPRESENTATIONS  AND  WARRANTIES  OF  KONIGSBERG
     Konigsberg  represents  and  warrants  to  the  Optionor  that:

     .1.  it is properly  constituted  and  has  the  full  power  and authority
          to  enter  into  this  Agreement;  and

     .2.  there are  no  outstanding  suits  or  actions  for non-performance on
          reclamation  work  or any other activities with respect to Konigsberg.

6.   COVENANTS  OF  KONIGSBERG

     Konigsberg  covenants  and  agrees  with  the  Optionor  that  until  the
     Option  is  exercised  in  accordance with the terms and conditions of this
     Agreement, or the Option or this Agreement otherwise terminates, Konigsberg
     shall:

     .1.  keep the  Property  free  and  clear  of  liens  and  other  charges
          arising  from  the  operations  of  Konigsberg  under  this Agreement;

     .2.  carry on  all  operations  on  the  Property  in a good and miner-like
          manner  and in compliance with all applicable governmental regulations
          and  restrictions;

     .3.  pay or  cause  to  be  paid  any  rates,  taxes,  duties,  royalties,
          assessments  or  fees  levied  with  respect  to  the  Property  or
          Konigsberg's  operations  thereon;

     .4.  indemnify  and  hold  the  Optionor  harmless  from  any  and  all
          liabilities,  costs,  damages  or  charges arising from the failure of
          Konigsberg to comply with the covenants of Konigsberg contained herein
          or  otherwise  arising  from  the  operations  on  the  Property  by
          Konigsberg,  its  servants  or  agents,  including  any  environmental
          cleanup  required  or  ordered  pursuant  to  the  laws of Mexico; and

     .5.  provide  the  Optionor  with  bi-annual  reports,  in  writing,  with
          respect  to  its  operations  on  the  Property  and shall provide the
          Optionor  with copies of any and all documents filed by Konigsberg for
          recording  of  it's  interest  with  respect  to  the Property and any
          related  regulatory  filings  .

7.   COVENANTS  OF  THE  OPTIONOR

     As  set  out  in  this  agreement  the  Optionor  has  agreed  to  act  as
     operator  during  the  earn  in  phase  of the Agreement and is entitled to
     charge  a  10%  management fee on all property exploration expenditures and
     related  head  office  overhead.  Accordingly,  the  Optionor covenants and
     agrees  with  Konigsberg  that  until the Option is exercised in accordance
     with  the  terms  and  conditions  of this Agreement, or the Option or this
     Agreement  otherwise  terminates,  the  Optionor  shall:

     .1.  keep the  Property  free  and  clear  of  liens  and  other  charges
          arising  from  the  operations  of  the Optionor under this Agreement;

<PAGE>

     .2.  carry on  all  operations  on  the  Property  in a good and miner-like
          manner  and in compliance with all applicable governmental regulations
          and  restrictions;

     .3.  pay or  cause  to  be  paid  any  rates,  taxes,  duties,  royalties,
          assessments  or fees levied with respect to the Property or Optionor's
          operations  thereon  funding  for  said  tax  payments to be funded as
          detailed  above;

     .4.  indemnify  and  hold  Konigsberg  harmless  from  any  and  all
          liabilities, costs, damages or charges arising from the failure of the
          Optionor to comply with the covenants of the Optionor contained herein
          or  otherwise  arising  from  the  operations  on  the Property by the
          Optionor,  its servants or agents, including any environmental cleanup
          required  or  ordered  pursuant  to  the  laws  of  Mexico;  and

     .5.  provide  Konigsberg  with  bi-annual  reports,  in  writing,  with
          respect to its operations on the Property and shall provide Konigsberg
          with  copies  of any and all documents filed by Optionor for recording
          of  assessment  work  on  the  Property.

8.   JOINT  VENTURE

     .1.  Once Konigsberg  has  earned  an  interest  in  the  Property  as
          provided  above,  Konigsberg  may  elect  at  any time to form a joint
          venture with the Optionor (the "Joint Venture") in accordance with the
          terms and conditions of a joint venture agreement in substantially the
          form  attached  hereto  as Schedule C (the "Joint Venture Agreement").
          The  Optionor  ,  or  its  assigns, shall be the operator of the Joint
          Venture  initially but the operator may be replaced as provided in the
          Joint  Venture  Agreement.

     .2.  The Joint  Venture  Agreement  shall  include  a provision that in the
          event  that  the  Joint  Venture working interest of Konigsberg or the
          Optionor  is diluted to a 10% working interest, in accordance with the
          terms and conditions of the Joint Venture Agreement, the diluted party
          shall  revert  to  a  2.0%  Net Smelter Royalty on the Property, which
          shall  be  subject  to an exclusive and irrevocable option held by the
          other  party whereby the other party may at any time purchase one half
          of  the  2.0%  Net  Smelter Royalty (i.e. 1.0%) for a sum of U.S. $2.0
          million.  In addition the non-diluted party will hold an exclusive and
          irrevocable  30 day right of first refusal on any and all dispositions
          of  any  portion  of  such  Net  Smelter Royalty by the diluted party.

     .3.  Upon the  formation  of  the  Joint  Venture,  the Optionor will cause
          to  be  transferred and recorded in accordance with the laws of Mexico
          that portion of the title interest which has been earned by Konigsberg
          to  Konigsberg's  legally registered Mexican operating subsidiary said
          subsidiary  to be established by Konigsberg prior to the vesting of an
          interest  in  the  Property.

<PAGE>

9.   TERMINATION

     .1.  Konigsberg  shall  be  permitted  to  return  any part of the Property
          to  the  Optionor  prior  to the termination of the Agreement, without
          effect  to  the  rights  of Konigsberg under this Agreement, provided,
          however,  that Konigsberg must insure that it leaves any returned part
          of  the  Property  in  good  standing  with  respect to the applicable
          property  taxes  and  work requirements as necessitated by the Mexican
          government.

     .2.  Konigsberg  may  terminate  this  Agreement  at  any time after having
          met  its  firm commitments as outlined above, by giving written notice
          to  the  Optionor of the termination of this Agreement (the "Notice of
          Termination")  and such termination shall be effective on the 15th day
          after  the  Notice  of Termination is sent to the Optionor. Konigsberg
          must  leave  the  Property  in  good  standing  with  respect  to  the
          applicable  property taxes and work requirements as necessitate by the
          Mexican  government.

     .3.  Notwithstanding  Paragraph  9.2,  if  Konigsberg  fails  to  make  any
          payment (optional, discretionary or otherwise) or fails to do anything
          on  or  before  the  last day provided for such payment or performance
          under  this  Agreement  (in  each  or  either  case  referred  to as a
          "default"  ),  the  Optionor may terminate this Agreement but only if:

          .1.  The Optionor  has  first  given  Konigsberg  written  notice  of
               the  default  containing  particulars  of  the  payment  which
               Konigsberg  has  not  made  or  the  act which Konigsberg has not
               performed;  and

          .2.  Konigsberg  has  not,  within  30  days  following  delivery  of
               such  notice,  cured  such  default  by  appropriate  payment  or
               performance  (Konigsberg  hereby  agreeing  that  should  it  so
               commence  to  cure  any  default, they will prosecute the same to
               completion  without  undue  delay).

     .4.  Should  Konigsberg  fail  to  comply  with  the  provisions  of
          Sub-paragraph  9.3,  the  Optionor  may  thereafter  terminate  this
          Agreement  by  notice to Konigsberg with respect to the default on the
          Property  as  laid  out  in  Sub-paragraph  9.3.

     .5.  Upon the  termination  of  the  Agreement,  Konigsberg  forfeits  any
          and  all  interest in the Property and shall cease to be liable to the
          Optionor  in  debt,  damages or otherwise, save for the performance of
          those  obligations, which theretofore should have been performed. Upon
          termination  of  this agreement by the Optionor, Konigsberg must leave
          the  Property in good standing with respect to the applicable property
          taxes  and  work  requirements as necessitate by the Mexican as of the
          date  of  termination. If termination relates to the failure to make a
          payment,  the  last payment shall not be considered an obligation that
          should  have  been  performed.

     .6.  Upon the  termination  of  this  Agreement,  Konigsberg  shall provide
          copies  of  all  maps and reports with respect to the Property that it
          has  generated  and vacate the Property within a reasonable time after
          such  termination, but shall have the right of access to such Property
          for  a  period  of three months thereafter for the purpose of removing
          its  chattels,  machinery,  equipment  and  fixtures  there  from.

<PAGE>

10.   INDEPENDENT  ACTIVITIES

     Except  as  expressly  provided  herein,  both  parties shall have the free
     and  unrestricted  right  to  independently  engage in and receive the full
     benefit  of any and all business endeavours of any sort whatsoever, whether
     or  not  competitive  with  the  endeavours  contemplated  herein  without
     consulting  the  others  or  inviting or allowing the others to participate
     therein.  Neither  party  shall be under any fiduciary or other duty to the
     other,  which  will prevent them from engaging in, or enjoying the benefits
     of  competing  endeavours  within  the  general  scope  of  the  endeavours
     contemplated  herein.  The  legal  doctrines  of  "corporate  opportunity"
     sometimes applied to persons engaged in a joint venture or having fiduciary
     status  shall  not  apply  in  the case of any of either of the parties. In
     particular,  without  limiting  the foregoing, neither of the parties shall
     have  an  obligation  to  the  other  party  as  to:

     .1.  any opportunity  to  acquire,  explore  and  develop  any  mining
          property, interest or right presently owned by them or offered to them
          outside  of  the  Property  at  any  time;  and

     .2.  the erection  of  any  mining  plant,  mill,  smelter  or  refinery,
          whether or not such mining plant, mill, smelter or refinery is erected
          for  processing  ores  or  concentrates  from  the  Property.

11.  CONFIDENTIALITY  OF  INFORMATION

     Both  parties  hereto  shall  treat  all  data,  reports, records and other
     information  relating  to  this agreement and the Property as confidential.
     While  this  agreement  is  in effect, neither of the parties hereto shall,
     without  the  express  written  consent of the other, disclose to any third
     party  any  information  concerning the results of the operations hereunder
     nor  issue  any press releases concerning this agreement or its exploration
     operations  except  where:

     .1.  such disclosure  is  mandatory  under  the  law or is deemed necessary
          by  Konigsberg's  or  the  Optionor's  counsel for the satisfaction by
          Konigsberg  or  the  Optionor  of  their  obligations  to  applicable
          securities  regulatory  bodies;  or

     .2.  Konigsberg  or  the  Optionor  is  seeking  the  participation of such
          third party in the exploration, development or production or financing
          of  the  Property  and such information is divulged under confidential
          circumstances.  Due consideration shall be given to present and future
          governmental  regulations  with  respect to such data disclosures. The
          parties shall provide to each other, with minimum 24 hour notice where
          possible,  draft  planned  press  releases  for  comment.

12.  ASSIGNMENT

     .1.  Each of  the  parties  has  the  right  to  assign  all or any part of
          their  interest  in  the Property and in this agreement. It shall be a
          condition  precedent  to  any such assignment that the assignee of the
          interest  being  transferred agree in writing to be bound by the terms
          of  this  agreement,  as  if  it  had  been  an original party hereto.

     .2.  Konigsberg  shall  have  a  30  day first right of refusal on any sale
          or  transfer of the Optionor' rights title or interest in the Property
          or  any  royalty  from  the  Property.

<PAGE>

     .3.  In the  event  that  a  Joint  Venture  is  formed,  following  the
          commencement  of  the  Joint Venture, the Optionor shall have a 60 day
          first  right  of  refusal  on the sale of the Konigsberg interest. The
          right of first refusal in clause 12.3 shall not operate retroactively.

13.  UNAVOIDABLE  DELAYS

     If  either  party  should  be  delayed  in or prevented from performing any
     of  the  terms,  covenants  or  conditions of this Agreement by reason of a
     cause  beyond  the  control  of  such  parties,  including  fires,  floods,
     earthquakes,  subsidence,  ground  collapse or landslides, interruptions or
     delays  in  transportation or power supplies, strikes, lockouts, wars, acts
     of  God,  government  regulation  or  interference,  including  but without
     restricting  the generality of the foregoing, forest or highway closures or
     any  other cause beyond such parties' control, then any such failure on the
     part  of  such  parties to so perform shall not be deemed to be a breach of
     this agreement and the time within which such parties are obliged to comply
     with  any  such  term,  covenant  or  condition  of this agreement shall be
     extended  by  the  total  period  of  all  such  delays.  In order that the
     provisions  of  this  article  may  become operative, such party shall give
     notice  in  writing to the other party, forthwith and for each new cause of
     delay  or  prevention  and  shall set out in such notice particulars of the
     cause  thereof  and  the day upon which the same arose, and shall give like
     notice  forthwith  following  the  date  that such cause ceased to subsist.

     If  Notice  under  this  clause  is  provided  the  Optionor  shall  also
     provide  Notice  to the Government of Mexico and make reasonable commercial
     efforts  to  have  provisions  made  for  additional  time  with respect to
     completion of work requirements and payment of mineral taxes and associated
     deadlines.  However,  there  is  no  assurance  that theses efforts will be
     successful  and  if  not  the  requirement  for  maintaining claims in good
     standing  shall  be  waived  if  necessary.

14.  ARBITRATION

     If  there  is  any  disagreement  dispute  or  controversy  (a  "Dispute")
     between the parties with respect to any matter arising under this agreement
     or  the  construction  hereof,  then  the  Dispute  shall  be determined by
     arbitration  in  accordance  with  the  following  procedures:

     .1.  The parties  on  both  sides  of  the  Dispute  shall inform the other
          parties  by  notice  of the name of an appointed independent person as
          Arbitrator,  who  is  a  recognized  expert  in  the area which is the
          subject  matter  of  the  Dispute;  and

     .2.  The appointed  Arbitrators  shall  agree  on  the  name  of  the  one
          person  that  they  wish  to  act  as the third Arbitrator. If the two
          Arbitrators  can  not  agree  within 30 days of their appointment on a
          third  Arbitrators  they  shall ask the head of the Bar Association of
          British  Columbia  to  select  a  third  Arbitrator.

     The  arbitration  shall  be  conducted  in accordance with the Arbitrations
     Act  (British  Columbia)  and the decision of the arbitrator panel shall be
     made within 30 days following their being named, shall be based exclusively

<PAGE>

     on  the  advancement of exploration, development and production work on the
     Property  and  not on the financial circumstances of the parties. The costs
     of  arbitration shall be borne equally by the parties to the Dispute unless
     otherwise  determined  by  the  arbitrator  in  the  award.

15.  NOTICES

     Any  notice,  election,  consent  or  other  writing  required or permitted
     to be given hereunder shall be deemed to be sufficiently given if delivered
     by  courier  or  if  mailed  by  registered  mail,  addressed  as  follows:

         In  the  case  of  Sydney  Resource  Corporation:
            C/o the President
            328-550  Burrard  Street
            Vancouver,  BC  V6C  2B5
            Facsimile:  604-685-1682

         In  the  case  of  Konigsberg  Corporation:
            C/o  Adam  Cegielski,  President
            Konigsberg  Corporation
            90 Reynolds Street
            Oakville Ontario
            L6J 3K2
            Facsimile:

     And  any  such  notice  given  as  aforesaid  shall  be deemed to have been
     given  to the parties hereto if delivered, when delivered, or if mailed, on
     the  tenth  (10th)  business  day  following  the  date  of mailing, or, if
     telegraphed or faxed, on the next succeeding day following the telegraphing
     or  faxing  thereof  PROVIDED  HOWEVER that during the period of any postal
     interruption  in  either the country of mailing or the country of delivery,
     any notice given hereunder by mail or if mailed by registered mail shall be
     deemed  to  have  been  given only as of the date of actual delivery of the
     same.  Either  party  may from time to time by notice in writing change its
     address  for  the  purpose  of  this  paragraph.

16.  GENERAL  TERMS  AND  CONDITIONS

     .1.  The parties  hereto  hereby  covenant  and  agree  that  they  will
          execute  such further agreements, conveyances and assurances as may be
          requisite,  or  which  counsel  for  the parties may deem necessary to
          effectually  carry  out  the  intent  of  is  agreement.

     .2.  This Agreement  shall  represent  the  entire  understanding  between
          the  parties  with  respect  to  the  Property.  No representations or
          inducements  have  been  made  save  as  herein set forth. No changes,
          alterations,  or modifications of this agreement shall be binding upon
          all  parties  until  and unless a memorandum in writing to such effect
          shall  have  been  signed  by  both  parties  hereto.

<PAGE>

     .3.  The titles  to  the  articles  to  this  agreement shall not be deemed
          to  form  part  of this agreement but shall be regarded as having been
          used  for  convenience  of  reference  only.

     .4.  The schedules  to  this  agreement  shall  be construed with and as an
          integral part of this agreement to the same extent as if they were set
          forth  verbatim  herein.

     .5.  All reference  to  dollar  amounts  contained  in  this  agreement are
          references  to  United  States  funds.

     .6.  This Agreement  shall  be  governed  by  and interpreted in accordance
          with  the  laws  in effect in British Columbia, and the parties hereto
          attorn  to  the  courts  of British Columbia for the resolution of any
          disputes  arising  out  of  this  agreement.

     .7.  The Agreement  may  be  executed  in  any number of counterparts. Each
          counterpart  shall  be  deemed for all purposes to be an original, and
          all  such  counter-parts shall constitute one and the same instrument,
          binding  on all of the parties hereto. A copy of this Agreement signed
          by  one  party and faxed to another party shall be deemed to have been
          executed  and  delivered by the signing party as though an original. A
          photocopy  of this Agreement shall be effective as an original for all
          purposes.

     .8.  This Agreement  shall  enure  to  the  benefit  of and be binding upon
          the  parties  hereto  and  their  respective  successors  and assigns.

     If  the  foregoing  correctly  sets  forth  your understanding of the terms
     and  conditions  agreed to between us with respect to the Option granted to
     Konigsberg  and  the  general  terms  and  conditions of any Joint Venture,
     please  acknowledge  the  same by signing and returning to us the duplicate
     copy  of  this  letter  enclosed  for  that  purpose,  whereupon  a binding
     agreement  among  us  will  be  in  effect.

     SYDNEY RESOURCE CORPORATION

     Per: /s/ Darin Wagner
         ---------------------------
         Darin Wagner
         President and Director

     The  Undersigned,  Konigsberg,  hereby  confirm  our  acceptance  of  the
     foregoing  terms  and  conditions  and agree to be bound thereby as of this
     31st day  of  May , 2006.

     KONIGSBERG CORPORATION

      Per: /s/ Adam Cegielski
          -------------------------
          Adam Cegielski,
          President and Director

<PAGE>

                                   SCHEDULE A

Claim Schedule and Map
----------------------
Mineral Concessions - YoquivoProperty
-------------------------------------

     Mineral Concessions     Type of Concession     Title No.       Hectares
     -------------------     ------------------     ---------     ------------

     El Dollar                  Exploitation          214876        9.1902

     La Nina                    Exploration           217475        122.0000

     San Francisco de Yoquivo   Exploration           220851        91.0579

     Dolores                    Exploration           216491        71.6262

     La Restauradora            Exploration           217476        60.8098

     La Copa                    Exploration           223499        2,500.0000
     -------------------     ------------------     ---------     ------------
     Total                                                          2,854.6841

<PAGE>

                                   SCHEDULE  B

ENCUMBRANCES (to include any and all underlying agreements and amendments)

     The  encumbrances  of  the  claims  are:

<PAGE>

                                   SCHEDULE C

                                  JOINT VENTURE

The Joint Venture Agreement will be in an industry standard form attached hereto
or  failing  a  mutual  agreement  on  an  acceptable form and not initialed and
attached  hereto  in  the  form  of  the  Rocky  Mountain  Mineral  Law form 5A.

<PAGE>

                                   SCHEDULE D

                      Letter of Intent dated April 13, 2006

<PAGE>

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