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Cabo Increases Private Placement To $870K

North Vancouver, BC:  Cabo Drilling Corp. (the “Company”) (TSX-V: CBE) announces that, based upon a very encouraging response to the Company’s private placement announced November 2, 2009, the placement has been increased by $200,000 (approx. 30%) from $670,000 to $870,000.  Investors represented by Loeb Aron & Company Ltd. and PanAmerica Capital Group Inc., together with other qualified investors, including a group of Company insiders, will participate in the placement.

The partially brokered private placement, arranged between the Company, Loeb Aron & Company Ltd., PanAmerica Capital Group, and the other investors, will now total 7,250,000 units at $0.12 per unit, for total cash proceeds of $870,000.  The units comprise one (1) common share and one half (½) non-transferable share purchase warrant, each full warrant will entitle the holder to purchase an additional share for $0.15 for a period of two (2) years from the date of issuance. A number of the Company’s directors and senior managers are participating in the placement.  The placement is subject to regulatory acceptance.

The Company will use the proceeds of the financing to support the purchase of equipment and for working capital.

Stock Options Granted
Further to the Company’s announcement, June 30, 2009, the Company has granted an additional 200,000 employee incentive options under terms of its Stock Option Plan, providing the right to purchase up to 100,000 common shares of the Company at $0.225 per share and the remainder at $0.25 per share.  Total incentive options granted to date by the Company under terms of its Stock Option Plan stand at 2,900,000.  Fifty percent (50%) of the total options are exercisable at $0.225 per share and the balance are exercisable at $0.25 per share.

About Cabo Drilling Corp. (TSX-V: CBE)
Cabo Drilling Corp. is a drilling services company headquartered in North Vancouver, British Columbia, Canada. The Company provides mining related and specialty drilling services through its Canadian divisions in Surrey, British Columbia; Montréal, Quebec; Kirkland Lake, Ontario; and Springdale, Newfoundland; and internationally through Cabo Drilling de Mexico S.A. de C.V. of Hermosillo, Mexico; Cabo Drilling (Panama) Corp. of Panama, Republic of Panama; Cabo Drilling Spain S.L. of Sevilla, Spain; Balkan States Drilling SH.P.K. of Tirana, Albania; and Cabo Drilling (International) Inc.  The Company’s common shares trade on the Frankfurt Exchange under the symbol: DHL and on the TSX Venture Exchange under the symbol: CBE.

ON BEHALF OF THE BOARD

    “John A. Versfelt”

John A. Versfelt
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 Sheri Barton, Corporate Communications at 403-217-5830 or Mr. John A. Versfelt, Chairman, President & CEO of the Company at 604-984-8894.  For general investor relation inquiries you may also contact Renmark Financial Communications Inc.:
Barbara Komorowski: bkomorowski@renmarkfinancial.com or
Dan Symons: dsymons@renmarkfinancial.com
Tel: 514-939-3989 or 416-644-2020.

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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: 11/12/2009