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CABO TO ACQUIRE LES FORAGES DE MONTR AL (MONTREAL DRILLING)

-- Transaction to Bring Geotechnical and Environmental
Drilling Services Company into Cabo Fold --

Vancouver, BC – Cabo Mining Enterprises Corp. (“Cabo” or the “Company”) (TSX-V: CBE) announces that it has signed a letter of intent to acquire Québec-based Les Forages de Montréal (1988) Inc. (“Forages de Montréal”). Cabo will pay $750,000 comprised of $350,000 in cash and 500,000 Cabo common shares at a deemed value of $0.80 per share. The transaction is subject to board approval, due diligence and regulatory approval.

The acquisition will bring specialty driller, Forages de Montréal, into the Cabo fold and will add breadth to the Company’s geotechnical and environmental drilling capability alongside existing Cabo subsidiaries, Stratacan Inc and Stratacan (Québec) Inc. Forages de Montréal, founded in 1988, is a geotechnical, geothermal, hydrological and environmental drilling services provider with a fleet of 15 rigs and a staff of 25. Their operations are in the Province of Québec, mainly in or around Montréal and Québec City,

“We are looking forward to the addition of Forages de Montréal to the Cabo team…
we like their demonstrated growth, focus on customer service, their professionalism and their innovative ‘can-do’ approach… Forages de Montréal promises to be a great complement to Stratacan and will help put Cabo on the specialty drilling map in Quebec,” said John Versfelt, Cabo’s Chairman, President and CEO.

In the past three years Forages de Montréal, headed by its founder, President and General Manager, André Laplante, has dedicated a large part of its resources to developing innovative technologies and training personnel. They currently deal with a number of loyal customers, for whom they do year-round work. Most of these clients are engineering firms and include: Technisol; Biogénie; Desseau-Soprin; and SNC Lavalin.

In 2004, Forages de Montréal reported gross revenue of $1.6 million with profits before taxes of $85,000. In 2003, they reported $2.1 million gross revenue with profits of $52,000.

Cabo Mining Enterprises Corp. is a drilling services and mineral exploration company headquartered in North Vancouver, British Columbia, Canada. The Company, presently with more than 100 drills and more than 225 staff, 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: 02/21/2005