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CABO TO ACQUIRE STRATACAN INC. AND STRATACAN (QUEBEC) INC.

Cabo Mining Enterprises Corp. (“Cabo” or the “Company”) announces that it has agreed to acquire the 60% of the shares of Stratacan Inc. and Stratacan (Quebec) Inc. (together, “Stratacan”) not already controlled by Cabo. Agreed consideration is $83,333 in cash and 196,000 common shares of Cabo. Stratacan owns five drill rigs that conduct geotechnical and environmental drilling in the provinces of Quebec and Newfoundland and Labrador. Stratacan management reported combined revenue of $729,876 and net income $10,898 for their years ending November 30, 2003. R. Terry Snelgrove, P. Geo., will remain as president of Stratacan. The acquisition is subject to Cabo’s satisfactory completion of due diligence, TSX Venture Exchange approval and the conclusion of a formal acquisition agreement.

Cabo’s subsidiaries, acquired on June 30, 2004, have reported to Cabo their financial results to May 31, 2004. Petro Drilling (Maritimes) Ltd. (“Petro”); reported revenue of $1.03 million and income before taxes of $0.16 million for the 5 months ending May 31, 2004. Heath & Sherwood Drilling (1986) Ltd. (“HSD”) reported revenue of $10.8 million and earnings before taxes of $0.52 million for the 12 months ending May 31, 2004. These results were prepared and reported to Cabo by the management of Petro and HSD . Further financial information from these acquisitions will be consolidated into Cabo’s financial statements.

Cabo is a drilling services and mineral exploration company headquartered in Vancouver, British Columbia, Canada. The Company provides drilling services through its subsidiaries Heath & Sherwood Drilling (1986) Inc. of Kirkland Lake, Ontario and Petro Drilling Company Limited of Springdale, Newfoundland. Cabo’s mineral exploration properties are located near Cobalt, Kenora, and Sudbury Ontario, Canada. The Company’s common shares trade on the TSX Venture Exchange under the symbol: CBE.ON BEHALF OF THE BOARD

(signed “John Versfelt”)

John A. Versfelt

Chairman, President and 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: 08/16/2004