*  
       

Sydney Resource Corporation is an exploration and development company based in Vancouver, Canada.

Whose aim is to:

* Aggressively ACQUIRE GOLD and ASSOCIATED BASE METALS advanced exploration projects

* To acquire near production opportunities to GENERATE EARLY CASHFLOW.

* To out-source the majority of services required by the Company during the early phases to MAXIMIZE DOLLARS IN THE GROUND. 

The Company is focused on areas where it has competitive advantages, in Mexico and other Spanish or English speaking countries. The INDE Gold Project is Sydney's first high quality gold target in Mexico, where the Company is advised by Dr Peter Megaw and Minera Cascabel.

Mexican Subsidiary: Minera Golondrina, S de RL de CV.

Sydney Resource Corporation  SYR   (TSXV)

SYDNEY RESOURCE CORPORATION OPTIONS INDE GOLD PROPERTY - MEXICO

Sydney Resources has optioned the Inde gold project in Durango, Mexico, from Minera Bugambilias, SA de CV, through Sydney's wholly owned Mexican subsidiary.  Sydney will take on all of the rights and obligations of Bugambilias stemming from its option agreement signed with Amarc, SA de CV on Dec. 29, 2003. Amarc, SA de CV is a subsidiary company of Amarc Resources Ltd.; part of the Hunter Dickinson Group International. As part of the agreement and subject to TSX Venture Exchange approval, Sydney will issue 300,000 warrants to Amarc, exercisable at a price of 52 cents per share until Feb. 4, 2006.

The Inde property consists of five contiguous mineral concessions located in Durango state, south of Chihuahua, in central Mexico. Amarc owns three of the concessions; two of which are held under an option to purchase agreement with Comercializadora y Arrendadora Parral, SA de CV. Sydney can earn up to a 70-per-cent interest in the Inde project by exercising two options. Under the first option, Sydney can earn a 51-per-cent interest by incurring $2.2-million in expenditures on the property within three years of which $100,000 must be spent in the first year, a further $500,000 in the second year and a further $1.6-million in the third year. Sydney must also make option payments on the Parral concessions to keep the property in good standing for the first year. Alternately, Sydney could earn its 51-per-cent interest by extinguishing all of the option payments, totalling $4-million (U.S.) on the Parral concessions. Sydney can exercise the second option and earn an additional 19-per-cent interest in the Inde project by making a further $2-million (U.S.) in expenditures or by having an internationally recognized third party engineering firm complete an industry-standard feasibility study on the project within three years, or by extinguishing a 4-per-cent net smelter royalty on the Parral concessions.

The Inde district was a significant producer of gold and silver from both surface and underground workings between 1532 and 1935. The district covers over 36 square kilometres, encompassing both vein and carbonate-hosted mineralization, the latter hosting the majority of the district's gold production. Conservative estimates indicate production of between one million and two million ounces of gold from the eight separate historic carbonate-hosted mines within the 239-hectare Inde project area. Throughout the 471-year mining history for the gold zone, work focused solely on the oxide ores amenable to primitive processing technology, with minimal exploration or development of the underlying sulphide mineralization. Production on the property ceased in 1935, when all the easily accessible oxidized ore had been mined and the extensive underground workings had reached unoxidized sulphide ores, approximately 150 metres below surface.

The deposit is classified as a carbonate replacement deposit (CRD). Gold-rich CRDs, similar to Inde, occur throughout Mexico and include such important deposits as Mapimi, Durango state, Concepcion del Oro, Zacatecas state, and Cerro San Pedro, San Luis Potosi state. CRDs can have significant depth extent; mineralization at Concepcion del Oro camp was mined to depths of over 1,000 metres, so continuation of mineralization to depth is precedented.

Amarc carried out a geologic exploration program to seek unoxidized mineralization below the historic workings in 2001, and drilled 14 holes in 2002. Amarc successfully encountered significant sulphide gold mineralization in six holes and found that the best gold grades were in sulphides rich in magnetic pyrrhotite. A short postdrilling magnetic geophysical program defined three parallel magnetic anomalies that correlate closely with mineralized contacts in the system; one of which coincides closely with the best pyrrhotite-rich gold mineralization encountered in Amarc's drilling. Sydney will concentrate its initial exploration efforts on seeking additional gold mineralization along the anomaly cut by Amarc, the two remaining untested anomalies and a large gold-bearing skarn body. Dr. Peter Megaw of IMDEX, and Minera Cascabel, will manage the exploration program for Sydney and assist in generating additional targets in this prolific gold-rich CRD system.

Sydney president, Malcolm Swallow, said: "We are pleased to be able to work on such a significant and historically productive project. The area has great potential as indicated by the high grades, tonnages produced and extent of the old workings. We intend to concentrate our work on the identification of additional gold/sulphide mineralization building on the work started by Amarc.

"We are adequately funded for the initial exploration program and we look forward to early results from our first project in Mexico."

Press Release 05Feb04