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Cabo Drilling to Offer $1.5 Million Private Placement


February 16, 2011 - Vancouver, BC


Cabo Drilling Corp. /

CABO DRILLING TO OFFER $1.5 MILLION PRIVATE PLACEMENT

Processed and transmitted by Thomson Reuters.

The issuer is solely responsible for the content of this announcement.

North Vancouver, BC: Cabo Drilling Corp. (the "Company") (TSX-V: CBE) ispleased to announce it will offer a non-brokered private placement of$1.5million to accredited investors by way of a units offering at $0.20, eachunitcomprised of one share and one-half share purchase warrant, each fullwarrantentitling the holder to purchase an additional share of the Company for$0.25for a period of two years from the date of issue. A finder's fee of 7%cash and7% broker unit warrants will be paid on a portion of the placement. Thebrokerunit warrants allow the holder to purchase broker units for $0.20 per unit,eachunit comprised of one share and one-half share purchase warrant, eachfullwarrant to entitle the holder to purchase one additional share of theCompanyfor $0.25 of a period of two years. The placement is subject toregulatoryacceptance.

"This significant working capital injection will strengthen theCompany'sbalance sheet and enable the Company to continue expanding its drillingcapacityat a time when the demand for drills is growing steadily," states Cabo'sCEO andPresident, Mr. John Versfelt."

The Company will use the proceeds of the private placement for workingcapital.

About Cabo Drilling Corp. (TSX-V: CBE)

Cabo Drilling Corp. is a drilling services company headquartered inNorthVancouver, British Columbia, Canada. The Company provides miningrelated andspecialty drilling services through its Canadian divisions in Surrey,BritishColumbia; Montréal, Quebec; Kirkland Lake, Ontario; andSpringdale,Newfoundland; as well as Cabo Drilling (Panama) Corp. of Panama,Republic ofPanama; Cabo Drilling Spain S.L. of Sevilla, Spain; Balkan StatesDrillingSH.P.K. of Tirana, Albania; and Cabo Drilling (International) Inc. TheCompany'scommon shares trade on the Frankfurt Exchange under the symbol: DHL andon theTSX 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 Cabowebsite(http://www.cabo.ca) and SEDAR (www.sedar.com) or by contacting SheriBarton,Corporate Communications at 403-217-5830 or Mr. John A. Versfelt,Chairman,President & CEO of the Company at 604-984-8894. For general investorrelationinquiries you may also contact Renmark Financial Communications Inc.BarbaraKomorowski: bkomorowski@renmarkfinancial.com or ArashShahi:ashahi@renmarkfinancial.com at Tel: 514-939-3989 or 416-644-2020.

* * * *

The TSX Venture Exchange does not accept responsibility for theadequacy oraccuracy of this release. This news release may contain forward-lookingstatements including but not limited to comments regarding thetiming andcontent of upcoming work programs, geological interpretations, potentialmineralrecovery processes and other business transactions timing. Forward-lookingstatements address future events and conditions and therefore, involveinherentrisks and uncertainties. Actual results may differ materially fromthosecurrently anticipated in such statements.

--- End of Message ---

Cabo Drilling Corp.

3rd Floor, 120 Lonsdale Avenue North Vancouver BC Canada

Listed: Open Market (Freiverkehr) in Frankfurter Wertpapierbörse;

This announcement is distributed by Thomson Reuters on behalf ofThomson Reuters clients. The owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright and other applicable laws; and

(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Cabo Drilling Corp. via Thomson Reuters ONE

[HUG#1489448]

CONTACT:
John A. Versfelt
President & CEO
Telephone: (604) 984-8894
Facsimile: (604) 983-8056
e-mail: Email Contact

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