Exhibit 10.2

                            CONFIDENTIAL DEMAND LOAN


Date of Issuance:          June 15, 2008

Borrower:                  Silver Bay Resources Inc. ("Silver Bay")

Lender:                    Donald Gardner

Structure:                 Demand Loan ("Loan")

Principal:                 $60,000 USD.

Period:                    No fixed term

Interest:                  Zero percent

Terms:                     Upon the mutual  agreement  of both the borrower and
                           lender,  Silver Bay  Resources  Inc shall pay back in
                           full the principal owed.

Confidentiality:           The  parties  agree to keep this  term  sheet and its
                           contents confidential and not to distribute it to, or
                           discuss  it with,  any third  party  (other  than the
                           parties' legal and financial  advisors,  who shall be
                           informed of the confidential nature of this document)
                           without  the prior  express  written  consent  of the
                           parties.

The  undersigned  parties hereby  represent and warrant that this term sheet has
been duly authorized, executed and delivered.

By Silver Bay Resources Inc.


/s/ D. Gardner
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Authorized Signatory