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Cabo Receives Shareholder Approval for Sale of Mineral Properties...

North Vancouver, BC - Cabo Drilling Corp. (TSX-V:CBE) (“Cabo” or the “Company”) announces that at the Company’s Adjourned Annual General and Special Meeting of the Shareholders, held Monday, January 23, 2006, the disinterested shareholders overwhelming approved the previously announced sale of Cabo’s mineral properties to International Millennium Mining Corp. (the “Transaction”); voting 94.3% in favour.

Pursuant to the Transaction, the Company will transfer all of its mineral property interests to International Millennium Mining Corp. (“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, 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 (the “Units). The Company will subsequently redistribute no less than 75% of the Units to its shareholders on a ratio of one (1) IMMC unit for each four (4) shares of the Company held on a record date to be determined. The net effect will be that shareholders will continue to hold shares of the Company and receive units in the capital of IMMC. A four month hold period will apply to the redistributed IMMC shares. This transaction is subject to a number of conditions including, approval of the Board of IMMC, acceptance by the Exchange, completion by IMMC of a private placement of no less than $2,500,000, of which no less than $1,000,000 is to be expended on the mineral properties and to the Shareholders of IMMC approving the Transaction.

“A significant amount of work has gone into the sale of the mineral properties since our initial announcement in the Fall, 2005” stated John Versfelt, Cabo’s Chairman, President & CEO. “Following completion and closing of the Transaction, the Company’s shareholders will benefit by holding shares in two companies, one focused specifically on mineral and specialty drilling and the other focused on exploration and development of its mineral properties. Both companies are well positioned to benefit as the demand for metals continues to grow from markets around the world.”

Granting of Stock Options
Pursuant to the Company’s stock option plan, re-approved at its annual general meeting December 15, 2005, incentive stock options have been granted to new employees, officers and directors to purchase 450,000 common shares of the Company at various prices ranging from $0.50 to $1.00 per share. Following the grant of the options, the Company will have unexercised director and employee stock options totaling 2,408,000 common shares.
Cabo Drilling Corp. is a drilling services company headquartered in North Vancouver, British Columbia, Canada. The Company provides 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
(signed “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 Exchange has not in any way passed upon the merits of this news 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: 01/24/2006