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Cabo to Acquire Advanced Drilling

Transaction Combines Two of Canada’s Leading Drilling Services Companies

Vancouver, BC – Cabo Mining Enterprises Corp. (“Cabo” or the “Company”)
(TSX-V: CBE) announces that it has entered into a letter of intent to acquire British
Columbia-based Advanced Drilling Ltd. and related companies for $3,000,000 in cash and Cabo common shares at $0.90 per share. The transaction is subject to board approval, due diligence and regulatory approval.

The acquisition will combine two of Canada’s leading drilling services companies and increase Cabo’s drill fleet to 100 drill rigs, making Cabo what is believed to be Canada’s 3rd largest mineral drilling services company.

“This is the transaction we have been waiting for,” said John Versfelt, Cabo’s
Chairman, President and CEO. “Strategically and geographically, Advanced
is an ideal fit for Cabo. We are currently strong in central and eastern
Canada. This acquisition is a pivotal move as we broaden our reach across
the country and continue to execute our strategy to become a performance
leader in the Canadian drilling services industry.”


With the purchase of Advanced, Cabo will acquire 35 drill rigs and add up to 40
people to its team. Advanced’s business focus is Western Canada and the Canadian Territories, where it has offered mineral and technical drilling services, both surface and underground, for 20 years. Advanced has carried out a number of high profile projects, including Eskay Creek and Hope Bay Gold. Advanced clients include mineral exploration, mining and public utility companies.

For the 10 months ended October 31, 2004, Advanced had gross revenue of
$3.68 million and made a net profit before taxes of $570,000. These figures were
supplied by Advanced’s management.

Cabo is a mineral exploration and drilling services company headquartered in Vancouver British Columbia, Canada. Cabo is traded on the TSX Venture Exchange under the symbol: CBE. Cabo’s mineral properties are located in Cobalt, Kenora, and Sudbury Ontario, Canada. Further information about the Company can be found on the Cabo website (www.cabo.ca) and Sedar (www.sedar.com).
ON BEHALF OF THE BOARD,
(signed “John A. Versfelt”)
John A. Versfelt
Chairman, President & CEO


*******
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: 12/06/2004