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Cabo to Drill 5,000 Metres for Diamonds North Resources and Announces Stock Option Amendments

North Vancouver, BC – Cabo Drilling Corp. (TSX-V: CBE) (“Cabo” or the “Company”) announces that its Ontario division has been awarded a drilling contract by Diamonds North Resources Ltd. The awarded contract consists of 5,000 metres of BTW core drilling at Diamonds North’s Amaruk Project in Nunavut.

The drilling equipment will be mobilized in the middle of June with drilling to commence shortly thereafter. The Company will be utilizing a JKS Super 300 fly drill. In response to the recently released high diamond counts from the Char and Qavvik kimberlites, Diamonds North plans to collect larger bulk samples, approximately 6 to 10 tonnes, from each of these kimberlites. The objective of the bulk samples is to obtain a representative diamond size distribution for the Char and Qavvik kimberlites to assess their economic potential.

About Diamonds North Resources Ltd. (TSX-V: DDN)
Diamonds North is the dominant explorer in the Pelly Bay region and is focused on discovering Canada's next diamond mine. Diamonds North is well-financed with over $14 million in cash and marketable securities. The Company is rapidly evolving and committed to building long-term value through ongoing diamond discoveries.

Stock Options
Cabo also announces stock option changes. At March 31, 2007, the number of stock options granted totaled 2,428,000 shares. However, as a result of stock options expiring or terminating, this number is reduced to 1,906,500 shares to date, with a further 387,500 expiring mid-June, 2007. Upon review of all stock options for approximately 300 employees, the Company’s directors have approved, subject to TSX Venture Exchange acceptance:

1. 325,000 stock options granted on or prior to January 2007 shall remain unchanged and exercisable at $0.50/$0.75/$1.00 per share, with 1/3 of such options being exercisable at each such price per share;
2. 225,000 stock options previously granted to independent directors at $0.80 per share and exercisable to October, 2011 shall be re-priced to $0.65/$0.75/$0.85 per share, with 1/3 of such options being exercisable at each such price per share;
3. 150,000 new stock options shall be granted to new independent directors at exercise prices of $0.65/$0.75/$0.85 per share, with 1/3 of such options being exercisable at each such price per share. These options shall be exercisable for a period of four years;
4. 387,500 stock options, exercisable at $0.75 per share and previously granted to employees in 2002 expiring mid-June, 2007, shall be replaced in full at $0.65/$0.75/$0.85 per share, with 1/3 of such options being exercisable at each such price per share. These options shall be exercisable for a period of three years;
5. 730,000 stock options granted to employees at $0.80 per share and exercisable to October, 2007 shall be re-priced to $0.65/$0.75/$0.85 per share, with 1/3 of such options being exercisable at each such price per share. These options shall be exercisable to October, 2009;
6. 259,000 stock options granted to employees at $0.80 per share and exercisable to October, 2007 shall be re-priced to $0.75 per share and shall be exercisable to October, 2009;
7. 605,000 new stock options shall be granted to new and existing employees at an exercise price of $0.65/$0.75/$0.85 per share, with 1/3 of such options being exercisable at each such price per share. The options shall be exercisable for a period of three years.

The total stock options granted after the changes set out above, upon Exchange acceptance of these changes, shall be 2,679,500 for a net change from the stock options reported at March 31, 2007 of 251,500.

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; as well as Cabo Drilling de Mexico S.A. de C.V. of Hermosillo, Sonora, Mexico; Cabo Drilling (Panama) Corp. of Panama, Republic of Panama; and Cabo Drilling Spain S.L. of Sevilla, Spain. 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 Ms. Sheri Barton at 403-217-5830 or Mr. John A. Versfelt, Chairman, President & CEO of the Company at 604-984-8894.
* * * *
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: 06/15/2007