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Cabo Mining Enterprises Corp. (formerly Cabo Mining Corp.) (the “Company”)
announces the release of its 3rd Quarter Report and Financial Statements for the nine months to March 31, 2004. (BC Form 51-901F). Pursuant to the requirements of National Instrument 54-102, this news release provides a summary of the information contained in the Quarterly Report. Concurrently with this news release, the Company is filing the Quarterly Report with the regulatory authorities through SEDAR ( and has mailed it to Shareholders whose names appear on the Company’s Supplemental List. A copy of the Quarterly Report is available immediately on the SEDAR website, or will be mailed upon request. The Company is a reporting issuer in British Columbia and Alberta and currently trades on the TSX Venture Exchange (the “Exchange”) under the symbol CBE. At the annual general and special meeting held on December 19, 2003, the Shareholders approved a consolidation of the Company’s common shares on a five old for one new share basis and a name change to Cabo Mining Enterprises Corp.


Nine months to 
Mar 31/04

Nine months to
Mar 31/03

Loss for the nine months

$418,584 $333,250

Def. Exploration for nine months

$157,111 $145,504

Cabo is a mineral exploration company which, over the last ten years, has identified and acquired interests in mineral properties with potential, and funded and implemented surface exploration and drilling programs on properties in Canada, the United States and Cuba. Our company continues to maintain contact with and seek out opportunities with parties in Canada, the U.S.A. and in South America. Currently, Cabo has an interest in and is exploring three mineral properties in Ontario near Cobalt, Kenora and Sudbury.

Cabo has also announced its intention to enter into the mineral drilling services business by acquiring Heath & Sherwood Drilling(1986) Inc. of Kirkland Lake, Ontario, and Petro Drilling (Maritimes) Limited of the Maritimes, subject to regulatory and Shareholder approval of the transactions. Any Shareholders wishing to receive a copy of the Filing Statement submitted to the Exchange for approval of the acquisiton of the drilling companies and the consequent change of business should contact the Company by email or facsimile. Heath & Sherwood owns 37 drill rigs and Petro owns 23 drill rigs. The closing of the Heath & Sherwood and Petro transactions is also subject to the Company arranging not less than $4 million in financing to provide for capital expenditures, working capital and certain acquisition costs for drilling company

Further to the Company’s news releases dated February 11 and 17, 2004, the Company completed $7,187,599 of financings pursuant to a non-brokered private placement at $0.75 per subscription receipt and a brokered placement through Research Capital $0.83 per subscription receipt. Exchange approval has been received for the issuance of a total of 9,205,300 subscription receipts (the “Subscription Receipts”). Each Subscription Receipt is to be exchanged for one unit, consisting of one common share and one half of one share purchase warrant (the “Units”); at the closing of the H & S and Petro acquisitions. One full warrant can be exercised to acquire an additional common share at $1.25 for a period of two years. Finders fees totalling $50,000 and 161,267 units pursuant to the non-brokered private placement and brokers commission of $205,982 and 354,530 brokers warrants have been approved by the Exchange and will be paid upon closing of the Heath & Sherwood and Petro transactions and the release of the private placement funds from escrow. Each broker warrant entitles the
holder to acquire one unit at $0.83 per unit for a two year period. Each unit consists of one common share and one half of one share purchase warrant. Each whole purchase warrant is exercisable into one common share at $1.25 per share for a two year period.

Cobalt Properties, Cobalt, Ontario, Canada
A surface striping and trenching program on the Cobalt Property in Novembver, 2003 returned encouraging silver/cobalt/nickel results from a “Cobalt type” veining system which were announced in early February, 2004.

An 856 meter drill program has been completed in April /May 2004 on two silver targets. The targets aresilver/cobalt/nickel/copper mineralization hosted by Cobalt Type calcitequartz breccia veins similar to mineralization exposed in a late 2003 soil stripping program. Several vein structures were intersected. Drill core logging has been completed and sampling is in progress. Two control line grids are currently being completed covering a number of other known silver veins on the Cobalt Property. Geological mapping, prospecting, rock and soil geochemical surveys are planned for late Spring, followed by an extensive soil stripping and sampling program over these grid areas.

To March 31, 2004, cumulative exploration expenses on the Cobalt, Ontario Property were $822,861 and cumulative property costs were $1,968,896.

Electrum Lake Property, Kenora, Ontario, Canada
On November 3, 2003, Cabo announced the acquisition of a prospective gold/copper/silver/molybdenite property, located approximately 35 kilometres west of Kenora, Ontario, pursuant to an option agreement. Under the terms of this agreement, the Company must make cash payments of $30,000 ($5,000 paid) and issue 100,000 post-consolidated common shares over a period of two years and complete exploration expenditures of $200,000 over three years. Deferred exploration expenditures to March 31, 2004 amount to $7,453 on this property.

A small drill program was completed in May 2004 on the Electrum Lake gold/silver
property; drill core logging and sampling are in process. The drill holes are designed to replicate a 1961 drill hole completed by Electrum Lake Gold Mines Limited on a gold prospect that is reported to have intersected 60 feet of 0.27 oz/ton Au (18.3 m of 9.25 g/t). Several additional gold/silver/copper/molybdenite showings known to occur on the Electrum Lake property will be examined and sampled during the drilling program prior to commencing a comprehensive exploration program later in the Summer, 2004.

Sudbury Properties, Ontario, Canada
On May 6, 2004 the Company announced that it acquired a 100% interest in two
contiguous claim groups totalling 71 claim units and a further first right of refusal for an additional 13 contiguous claim units (approximately 3,350 acres) in the Sudbury, Ontario area. Under the terms of the agreements the Company must make cash payments totalling $17,000 and issue up to a total of 108,000 common shares to two vendors over a two year period. Both properties are subject to a 2% NSR and finder’s fees totalling 6% of the cash and common shares are to be paid over the same two year period. The Sudbury, Ontario mineral properties are located within sedimentary and volcanic rocks that flank the east side of the Sudbury Basin in MacLennan Township, approximately 4.5 kms southeast of Falconbridge Ltd’s Nickel Rim copper/nickel/platinum group deposit, and 3 kms northeast of the MacLennan Offset Dyke. The claims cover parts of two
reported quartz hosted gold occurrences – the “Skead Gold Prospect” and the “Bonanza Mine”, as well as a geological and structural setting that is favourable for
copper/nickel/platinum group/gold mineralization associated with Sudbury Type Offset Dykes. A prospecting and sampling program is planned to commence in June 2004. Mines in the Sudbury area are among the world’s largest producers of nickel, copper and platinum group minerals. These mines are located along the rim of the Sudbury Basin, an elliptical shaped structure approximately 27 kms by 60 kms in size. This structure is considered by most geologists to have been formed as a result of a meteorite impact that occurred approximately 1.85 billion years ago. The nickel, copper and platinum group, as well as gold mineralization, is found within the lowermost unit of the structure (the Sudbury Igneous Complex); in breccia bodies that have formed within the footwall of the structure and in quartz diorite dykes that radiate out from or form parallel rings to the structure. Gold mineralization also occurs within vein systems within the complex country rocks that surround the Basin.

Future Developments
Work continues with respect to the Company’s acquisition of H & S and Petro. The
formal drilling company acquisition agreements have been executed and filed with the Exchange, together with the Company’s Filing Statement for approval of the acquisitions and the resulting change of business. Audited financial statements, valuation reports, private placement documents for $7.187 million received into escrow on behalf of the Company and other documents related to these drilling company acquisitions have also been filed with the Exchange. At this time the Company is awaiting Exchange acceptance of the Filing Statement for distribution to Shareholders who wish to vote on the acquisition of the drilling companies and consequent change of business.

Upon final approval of the majority of the Company’s Shareholders and the Exchange, the drilling company acquisitions may be closed and the escrowed private placement funds will be released to the Company, which transactions must take place on or before June 30, 2004. If the Exchange acceptance and the closing of the drilling company acquisitions are not finalized and completed on or prior to June 30, 2004, the private placement proceeds must be returned to the investors and the drilling company acquisitions will terminate.

Related Party Transactions
John Versfelt, through his company, American Resource Management Consultants Inc., (ARMC) provides general management, administration and secretarial, accounting, paralegal services, office facilities and related services to the Company. For the nine months to March 31, 2004, ARMC billed $188,630 ($156,748 in 2003) for these services.

Seymour Sears, a director of the Company, through his company Sears, Barry &
Associates (Sears) provides geological consulting services to the Company. For the nine months to March 31, 2004, Sears billed $84,690 for these services ($91,670 in 2003).

General and Administrative
During the nine months ended March 31, 2004, general and administration expenditures totalled $388,584 compared to the previous year of $319,522. A prepaid expense of $30,000 previously charged to each quarter at $5,000 per quarter was written off, as the related services contract is terminated. The increase in general and administrative expenditures is attributed to increased work load related to the acquisition of the drilling companies, the acquisition of another mineral property, and the the non-brokered and brokered private placements. The significant increase in legal and accounting fees, transfer agent fees and regulatory filing fees are also a result of these activities. The major components of the changes in expenditure levels for the nine months ended March 31, 2004 compared to the nine months ended March 31, 2003 are shown on the
consolidated statements of loss and deficit.

Investor Relations
At December 14, 2001, the Company announced the engagement of The International Forecaster pursuant to a three-year consulting agreement to provide media publishing, telemarketing, internet messaging and other marketing services to the Company. A prepayment of $60,000 was made to them. This contract is terminated and the balance of the prepayment of $30,000 is written off in the nine months to March 31, 2004.

Subsequent Events
The Company announced February 11, 2004 a non-brokered private placement of
6,666,667 units at a price of $0.75 per unit to raise gross proceeds of $5,000,000. Each unit will consist of one common share and one-half of one share purchase warrant. Each whole warrant will entitle the holder to acquire one additional common share of the Company at a price of $1.25 per share for a period of two years from the date of issue. Finder’s fees will be paid in connection with the private placement, in accordance with Exchange policies. The majority of the funds will be used to satisfy the Company’s purchase and working capital obligations with respect to the acquisition of each of Heath and Sherwood Drilling (1986) Inc., and Petro Drilling (Maritimes) Limited. The proceeds, including commissions and expenses are to be placed in escrow pending successful completion of the acquisition of Heath and Sherwood Drilling (1986) Inc., and Petro
Drilling (Maritimes) Limited. The Company announced February 17, 2004 that it entered into an agreement with Research Capital Corp. of Toronto Ontario, with respect to a brokered private placement of 6,024,097 units at a price of $0.83 per unit to raise gross proceeds of $5,000,000.
The offering, which is subject to TSX Venture Exchange acceptance, is in addition to the $5 million non-brokered private placement announced by the Company on February 11, 2004. Each unit issued in the new offering will consist of one common share and onehalf of one share-purchase warrant. Each whole warrant will entitle the holder to acquire one additional common share of the Company at a price of $1.25 per share for a period of two years from the Closing of the offering. Broker’s fees will be paid in connection with the private placement, in accordance with Exchange policies and will include brokers warrants equal in number to 10% of the units distributed pursuant to the offering. The agent has been granted an over-allotment option to purchase up to an additional 1,204,819 units.
As set out earlier in this news release, $7,187,599 of financings pursuant to the above mentioned private placements have been received into escrow and Exchange approval has been received for the issuance of 9,205,300 subscription receipts. The proceeds, commissions and expenses are to be placed in escrow pending the closing of the acquisitions of H & S and Petro, and Subscription Receipts exchangeable for units consisting of one common share and one half of one share purchase warrant upon closing of the drilling company acquisitions, have been issued.

Additional Drilling Services
In pursuit of its plan to become the third largest mineral drilling services company in Canada, the Company has met, in the past two months, with a number drilling services companies to discuss acquisition possibilities. Discussions are ongoing. Any additional acquisitions will take place subject to the Exchange’s acceptance of the Company expanding its operations in the mining sector by acquiring drilling services companies and their acceptance of the H&S and Petro acquisitions.

Stock Option Plan
At April 23, 2004, the Exchange accepted for filing the Company’s 2003 Stock Option Plan (the “Plan”) which was approved by the Company’s shareholders at the Annual and Special General Meeting that was held December 19, 2003. The Company has implemented a rolling stock option plan whereby a maximum of 10% of the issued common shares of the Company will be reserved for issuance under the Plan.


(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: 05/31/2004