Sydney Resource Corporation

Sydney Resource Corporation

November 08, 2005 07:00 ET

Sydney Expands Timmins West Land Position

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 8, 2005) - Sydney Resource Corporation (TSX VENTURE:SYR) ("Sydney") announced today that it has signed an agreement with Probe Mines Limited (PRB:TSXV) to acquire two properties immediately south and southeast of Sydney's Northshore Property in Timmins, Ontario and adjoining Lakeshore Gold's Timmins West discovery. Sydney may earn up to a 70% interest in the two properties, totaling a combined 52 claim units (832 hectares).

"This new property adds several at or near surface gold exploration targets to Sydney's exploration portfolio," said Darin Wagner, President. "The Probe property, located adjacent to the first million ounce discovery in the Timmins West Camp, furthers our strategy of acquiring high-potential properties in the great gold districts of North America."

The Northern Probe Property hosts four zones of near surface gold mineralization discovered by drilling in late 2004 and early 2005. All four zones are in close proximity to the same sediment/volcanic contact which hosts the Timmins West discovery, although this contact remains to be tested. The Property covers the sediment-volcanic contact for 2.5 km. The Southern Block covers the eastward extension of the Bristol Fault Zone which intersects the surface occurrence of the Timmins West Discovery to the west and hosts multi-gram gold drill intercepts on the adjacent property to the east.

"These gold mineralized zones are a priority for follow-up, especially in light of the new high-grade multiple zone discoveries at Timmins West," said Darin Wagner.

Initial drill testing returned a discovery intersection of 6.0 metres grading 2.4 g/t Au from the A Zone. Follow-up drilling extended the A zone 100 metres to the east and to a depth of 100 metres and it remains open in all directions. A 500 metre long IP anomaly parallel to and south of the A Zone discovery, near the interpreted location of the sediment-volcanic contact, remains to be tested. The B Zone, which returned 11.0 metres grading 1.9 g/t Au in discovery hole BT04-02, including five, separate 1 metre samples ranging between 2.71 and 4.15 g/t, occurs higher in the volcanic sequence and is on strike to trend onto the Northshore Property.

Under the terms of the Agreement Sydney may earn an initial 55% interest in Probes' Bristol Project by making cash payments totaling $55,000, issuing 400,000 common shares over three years and completing $2,000,000 in exploration expenditures on the properties over a four year period. Sydney will commit to fund a minimum of $250,000 in exploration during the first 12 months of the agreement. Share payments of 100,000 shares at each of the first and second anniversary dates are value limited to $200,000 based on the 10 day trading average of SYR common shares preceding the date of issue. Having vested at 55% SYR may opt to increase its interest to 70% by making an additional cash payment of $50,000 and issuing an additional 50,000 common shares within 60 days of vesting and delivering a resource report to the standards required by National Instrument 43-101 on a resource developed within the bounds of the Properties within 2 years of having vested. The agreement is subject to a 20 day due diligence period, approval by the board of directors of Sydney and regulatory approval.

About Sydney

Sydney Resource Corporation is an exploration and development company based in Vancouver, Canada, focused on exploring and developing gold, silver and associated base metals projects in the North America. Sydney's recent acquisitions of the Northshore and Bristol Properties near Timmins, Ontario gives the Company exploration exposure in two multi-million ounce gold districts - The 70+ million ounce Timmins Gold Camp and the 40+ million ounce Sierra Madre Occidental of Mexico.


Darin Wagner, President

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