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Cabo Mining Enterprises Corp. (the “Company”) announces that it has 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 are to be paid within TSX Venture Exchange (Exchange) guidelines.

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 late May.

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.

Cobalt Area Project
An 856 meter drill program has been completed on two silver targets. The targets are silver/cobalt/nickel/copper mineralization hosted by Cobalt Type calcite-quartz 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.

Electrum Lake Project
A small drill program has commenced on the Electrum Lake gold/silver property near Kenora, Ontario. 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.
Private Placements Close Further to the Company’s news releases dated February 11 and 17, 2004, the Company has completed $7,187,599 of financing pursuant to a non-brokered private placement at $0.75 per subscription receipt and a brokered placement through Research Capital Corp. at $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 warrant (the “Units”). One full warrant can be exercised to acquire an additional common share at $1.25 for a period of two years. The private placement funds have been deposited in escrow and shall be released upon Exchange acceptance and upon closing of the Company’s acquisition of Heath & Sherwood Drilling (1986) Inc. (“H&S”) and Petro Drilling (Maritimes) Ltd. (“Petro”); at which time the Subscription Receipts will be exchanged for the Units and distributed to the private placement placees.

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.

Last Updated: 05/06/2004