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Cabo Announces Closing of Property Transaction and Private Placements and Setting of Record Date

North Vancouver, BC – Cabo Drilling Corp. (TSX-V: CBE) (“Cabo” or the “Company”) announces that it has closed the sale of its mineral exploration properties (the “Properties”) to International Millennium Mining Corp. (“IMMC”) and has set the record date for the distribution of no less than 75% of the 10,000,000 units, by the way of a return of capital, the Company has received from IMMC as consideration for its Properties (the “IMMC Distribution”) to its shareholders of record at the close of business January 11, 2007 (the “Record Date”).

The sale of the Company’s Properties was approved by shareholders of the Company on January 23, 2006 (the “Transaction”). Pursuant to the Transaction, the Company sold its Properties to IMMC in exchange for 10,000,000 units of IMMC, each unit consisting of one (1) IMMC common share and one-third (1/3) of a warrant (the “Units”); each full warrant entitling the holder to purchase one (1) share in the capital stock of IMMC for thirty-five cents ($0.35) for a period of two (2) years following the date of issue of the Units.

Shareholders as of the Record Date will be entitled to receive IMMC Units pursuant to the IMMC Distribution on a pro-rata basis based on the shareholdings as at the Record Date. Cabo will distribute the IMMC Units on a ratio of (1) IMMC Unit for each four shares of the Company that the shareholders hold at the Record Date.

Cabo is also pleased to announce that, further to the Company’s news release dated November 23, 2006, the Company has closed its non-brokered private placement of 7,248,867 units at $0.375 per unit for gross proceeds of $2,718,325. Each unit consists of one common share of the Company and one warrant, each warrant entitling the holder thereof to acquire one additional share of the Company at a price of $0.50 for a period of two years from the date of issuance of the units, provided that if the closing price of Cabo’s shares is $0.60 per share or greater for twenty (20) consecutive trading days following the four month hold period, Cabo may, upon notice to the warrant holders, reduce the exercise period to twenty (20) days from the date of the notice. The Company will use the net proceeds from the private placement for establishing drilling operations in Panama; up to $1,200,000 to invest in a private placement of International Millennium Mining Corp. (“IMMC”) (a reporting issuer seeking a listing on the TSX Venture Exchange); and the balance for general working capital purposes. The Company will pay non-broker fees totaling $146,600 and 180,893 in shares of the Company at a deemed value of $67,834.88.

Cabo Drilling Corp. is a drilling services company headquartered in North Vancouver, British Columbia, Canada. The Company provides mining related and specialty drilling services through its subsidiaries Advanced Drilling Ltd. of Surrey, British Columbia; Forages Cabo Inc. of Montréal, Quebec; Heath & Sherwood Drilling Inc., of Kirkland Lake, Ontario; and Petro Drilling Company Limited of Springdale, Newfoundland. The Company’s common shares trade on the TSX Venture Exchange under the symbol: CBE.

ON BEHALF OF THE BOARD

“John A. Versfelt”

John A. Versfelt
Chairman, President and CEO

Further information about the Company can be found on the Cabo website (http://www.cabo.ca) and SEDAR (www.sedar.com) or by contacting Investor Relations Ms. Sheri Barton at 403-217-5830 or Mr. John A. Versfelt, Chairman, President & CEO of the Companies at 604-984-8894.


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The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, potential mineral recovery processes and other business transactions timing. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. 
 


Last Updated: 01/02/2007