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CABO COMPLETES ACQUISITION OF ADVANCED DRILLING GROUP OF COMPANIES

VANCOUVER, B.C. - Cabo Mining Enterprises Corp. (“Cabo or the “Company”) today announces that it has completed its acquisition of the Advanced Drilling Group of Companies (“Advanced Drilling”). The acquisition means Cabo now has drilling operations from coast to coast across Canada and into the far north and brings the Company’s drilling fleet to over 100 drill rigs and total employees
to more than 225.

The Company believes the purchase of Advanced Drilling makes Cabo Canada’s third largest mineral drilling services provider, a significant achievement considering Cabo closed its first drilling company acquisitions just 7 1/2 months ago on June 30, 2004. (see previous releases http://www.cabo.ca/)

Total consideration for the Advanced Drilling acquisition is $3 million, comprised of $1.35 million cash and 1,833,333 common shares at a deemed price of $0.90 per share. With the purchase, Cabo has 30,256,578 shares issued and outstanding.

About Advanced Drilling / Cabo:

Advanced Drilling has been active in the drilling industry in Canada for over 20 years, primarily in British Columbia, Yukon, the Northwest Territories and Nunavut. They have a great deal of experience working in remote and Arctic conditions. Advanced Drilling subsidiaries are also experienced in Mexico and in Nevada where Advanced is presently licensed to operate. Both Mexico and Nevada are target markets for the Company.

Advanced Drilling operates from Surrey, British Columbia, and maintains a shop/warehouse operation in Whitehorse, Yukon. They presently own a fleet of 35 drill rigs, including 19 surface and 16 underground drills of various configurations. The operation has approximately 40 full-time employees and generated gross revenues of $3.612 million in the first 10 months of 2004. Advanced Drilling’s primary activity is core drilling in the minerals sector with a present focus on mine site drilling, both surface and underground. Many of Advanced Drilling’s rigs are also easily adapted to geotechnical sampling systems and procedures. Customers include Barrick Gold Inc., B.C. Hydro and Kennecott
Canada Exploration Inc.

Advanced Drilling Management:
Mr. Bud MacDonald will continue as President of Advanced Drilling. Part of Cabo’s acquisition policy is to retain the valuable employees and management of acquired companies. In keeping with that policy, the Company is pleased to announce that Mr. MacDonald, Mr. Jack McCutcheon and Mr. Dale MacDonald have accepted Cabo’s offer of continued employment with Advanced Drilling.

Cabo Management Statement:
The deal between two of Canada’s leading resource drilling companies began late last year. Now ratified it is described by Cabo Chairman, President & CEO John Versfelt as “…an ideal fit for Cabo, the deal we’ve been waiting for”.

In actual fact, it is just another deal by Mr. Versfelt and his management team who recognized three years ago that there was room for amalgamation within the mineral and specialty drilling services sectors and since that time they have completed a number of significant acquisitions.

“... in 2002 we decided we needed cash flow at Cabo. We saw consolidation in the mining industry in airborne geophysics companies, assay labs, drilling supply industries and more….but it wasn’t happening in the drilling sector…we decided to seize the opportunity…”


Through subsequent acquisitions of Heath & Sherwood Drilling, Petro Drilling, Stratacan (Quebec) Inc. and Advance Drilling all of which, Mr. Versfelt stresses, were friendly and well-received:

“…Cabo has retained staff and management of all these companies as valuable, quality professionals that fit well within the Cabo way of doing business…we decided long ago that you can buy metal and equipment, but it’s the people themselves that make an asset valuable…”

Mr. Versfelt points out that within the resource / mining sector alone, drilling represents approximately 52% of all exploration and development expenditures and quickly adds that the latest acquisition completes another important step in Cabo's long term acquisition strategy to become the drilling company of choice in Canada.

Thor Drilling:
Cabo also announces it has terminated the proposed transaction to acquire Thor Drilling Ltd. of Kenora Ontario, announced September 14, 2004.

Cabo Mining Enterprises Corp. is a drilling services and mineral exploration company headquartered in North Vancouver, British Columbia, Canada. The Company provides drilling services through its subsidiaries Heath & Sherwood Drilling (1986) Inc, of Kirkland Lake, Ontario; Petro Drilling Company Limited of Springdale, Newfoundland; Stratacan Inc. of St. John’s, Newfoundland; Stratacan
(Quebec) Inc. of St. Julie, Quebec; and Advanced Drilling Ltd. of Surrey, British Columbia. 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

“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 Mr. Garett Greene or Mr. John A. Versfelt, Chairman, President & CEO of the Company at 604-984-8894.

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The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this 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: 02/17/2005