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Cabo Drilling Signs Letter Of Intent to Form Strategic Alliance in the USA

Cabo Drilling Corp. (TSX-V: CBE) (“Cabo” or the “Company”) announces that Diamond Drilling Consultants, LLC (“Diamond Drilling”) and Cabo have signed a Letter of Intent and Term Sheet toward creating a strategic joint venture relationship to facilitate and conduct diamond core drilling and other specialized drilling operations in the United States of America.

Under provisions of the strategic alliance, Cabo Drilling (Nevada) Inc. (“Cabo Nevada”); a company to be owned 50% each by Cabo and Diamond Drilling,, will provide specialized equipment, tools and consumables for the operation, project management and administration of drilling services in the USA. The parties agree to place a very high emphasis on safety and sound environmental practices, using policies and procedures developed by them over the past 15 years.

Diamond Drilling will facilitate bidding, job procurement and employee recruitment and assist with project management and overall project coordination, in addition to providing both public relations and client relations services with respect to the drilling projects in the USA.

Collaborative efforts from both, Cabo and Diamond Drilling will consist of equipment and drill technology, technical assistance with respect to drilling techniques and drill equipment requirements.  These combined efforts will enable the joint venture to quickly access the USA marketplace and work towards ensuring that all potential USA customers’ needs are met.

“We are pleased to combine our resources with those of Diamond Drilling Consultants, LLC whose principals, Doug Kettle and Dave Deeds, have decades of experience and extensive insight into the USA mineral resource industry, the potential customer base and USA drilling requirements,” stated John Versfelt, Cabo Drilling’s President and CEO. “The combination of the Cabo management, equipment, technology and administration capability brought alongside Diamond Drilling’s USA knowledge is a compelling blend for Cabo’s initial steps in establishing a significant and ongoing presence in the USA drilling services market.”

Stock Option Grant
The Company also announces the granting of a total of 400,000 incentive stock options to new employees and consultants.  Subject to the acceptance of the TSX Venture Exchange, 200,000 stock options are exercisable at $0.225 per share and 200,000 stock options are exercisable at $0.25 per share for a period of up to two years.

About Cabo Drilling Corp.
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; as well as; 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.


John A. Versfelt
Chairman, President and CEO

Further information about the Company can be found on the Cabo website ( and SEDAR ( 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: or Arash Shahi: at 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: 01/31/2011