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Cabo Announces $3,000,000 Non-brokered & Brokered Private Placement

Cabo Drilling Corp. announces that it is carrying out a non-brokered private placement of up to 6,400,000 units at $0.375 per unit to raise gross proceeds of $2,400,000 and a brokered private placement of up to 1,600,000 units at $0.375 per unit to raise gross proceeds of $600,000. 

North Vancouver, BC – Cabo Drilling Corp. (TSX-V: CBE) (“Cabo” or the “Company”) announces that it is carrying out a non-brokered private placement of up to 6,400,000 units at $0.375 per unit to raise gross proceeds of $2,400,000 and a brokered private placement of up to 1,600,000 units at $0.375 per unit to raise gross proceeds of $600,000.  Each unit will consist 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 however that should the closing price of the Company’s shares on the Exchange be at least CDN$0.60 per share for 20 consecutive trading days (at any time at or following the expiry of the four month resale restriction period); Cabo may, by notice to the Subscriber reduce the remaining exercise period applicable to the warrants to not less than 20 trading days from the date of such notice.  The Company expects to pay finder’s fees or commissions on some or all of the private placements, payable in cash or securities, in accordance with the policies of the TSX Venture Exchange.   The non-brokered and brokered placements are subject to acceptance by the TSX Venture Exchange.

The Company will use the net proceeds from the offerings 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.  If the Company participants up to the full amount in the IMMC non-brokered private placement the Company would receive 3,428,571 units in IMMC at a price of $0.35 per unit.  Each unit will consist of one common share of IMMC and one full warrant exercisable at $0.40 for two years from the date of issue.

PanAmerica Capital Group, a significant subscriber in the Cabo non-brokered private placement, is the largest non-bank affiliated brokerage firm in Panama and the region.  PanAmerica has invested over US$220 million over the last five years in mining related equities.

Raymond James Ltd. will be acting as agent for the brokered private placement set out above.

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 Company 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: 11/23/2006