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CABO COMPLETES ACQUISITION OF LES FORAGES DE MONTR AL (1988) INC. (MONTREAL DRILLING)

North Vancouver, BC – Cabo Mining Enterprises Corp. (“Cabo” or the “Company”) (TSX-V: CBE) today announces that it has completed its acquisition of Les Forages de Montréal (1988) Inc. (“Forages de Montréal”). The completion of this acquisition enhances Cabo’s presence in the geoenvironmental and geothermal drilling sectors in the Montréal and greater Quebec markets.

Total consideration for the Forages de Montréal acquisition is $750,000, comprised of $350,000 cash and 500,000 Cabo common shares at a deemed value of $0.80 per share. The shares shall be released in 25% tranches, every four months, over a period of sixteen months.

About Forages de Montréal /Cabo
Forages de Montréal is a geoenvironmental drilling services provider with a fleet of 12 drill rigs and a staff of 20. Forages de Montréal has dedicated a large part of its resources to developing innovative technologies and trained personnel which has resulted in a number of loyal customers for whom they do year-round work.

Geoenvironmental drilling relates to subsurface investigations which may deal with environmental problems such as groundwater contamination, or engineering foundation design and/or soil and rock evaluation for construction purposes. Forages de Montréal, together with Cabo’s other geoenvironmental drilling company, Stratacan (Quebec) Inc., provide the specialized equipment and expertise to deal with these various geoenvironmental problems and design requirements.

It is Cabo’s intention to merge the operations of its subsidiary Stratacan (Quebec) Inc. with the newly acquired Forages de Montréal. The companies will operate under the new name Forages Cabo Inc. The synergies thus attained will allow for expansion of services presently offered and an increase in the type of services to be provided. It will include a broader geographic reach and greater emphasis on the geothermal market.

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; Forages Cabo Inc. of Montréal, 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

(signed “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 Ms. Sheri Barton at 403-217-5830 or Mr. John A. Versfelt, Chairman, President & CEO of the Company at 604-984-8894.


* * * *

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: 06/09/2005