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Cabo Drilling (Panama) Corp. and Fugro Panama S.A Form Alliance for On-site Investigation at the Panama Canal

NORTH VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/05/12 -- Cabo Drilling Corp. (TSX VENTURE:CBE) ("Cabo Drilling" or the "Company") announces that Cabo Drilling (Panama) Corp. and Fugro Panama S.A ("Fugro") formed an alliance to supply geotechnical drilling services at the Cristobal 2 Port Site at the Caribbean entrance to the Panama Canal.

Pursuant to the agreement between Cabo Drilling and Fugro, Cabo Drilling supplied drill equipment and a drill crew for marine geotechnical sampling, using a Jack-up Barge owned and operated by Fugro. During the program Fugro was responsible for logging and processing samples from the geotechnical boreholes, laboratory testing of recovered samples, geophysical studies; including both bathymetric and reflection seismic studies; and all engineer reporting.

Cabo Drilling's scope of the marine geotechnical program included drilling and sampling 22 boreholes to depths of up to 45 meters below the mud line, and recovering quality samples of soil and rock to be used to characterize the site for future port structures. Cabo completed the program ahead of schedule and within budget.

"We are excited to be able to combine Cabo Drilling's drilling expertise with Fugro's extensive engineering experience," comments Herb Butler, General Manager of Cabo Drilling Panama. "Fugro has the experience and professionalism that complements our capabilities and is a well-respected company with whom we are pleased to form a close alliance. We are optimistic that both parties will benefit from this union and have a bright future together."

Cabo Drilling has been operating in Panama since 2007, and has grown steadily year-over-year, increasing its revenues in fiscal 2012 from fiscal 2011 by 93% (Panama and Colombia) to $17.40 million. With its office established at the new International Business Park on the historic US Howard Air Force Base in Panama City, Cabo Drilling (Panama) Corp. is positioned to offer drilling services in Panama and the rest of Latin America. Cabo Drilling (Panama) Corp. specializes in remote drilling using man portable rigs and helicopter fly drills, and offers shallow and deep core drilling, geotechnical drilling and soils testing.

The Company would like to advise that effective immediately its new head office address is 20 Sixth Street, New Westminster, BC, V3L 2Y8, Canada and new phone and fax numbers are 604-527-4201 and 604-527-9126 respectively.

About Fugro Panama S.A.

Fugro is the world's leading service provider for the collection and interpretation of data relating to the earth's surface and sub-surface and for associated services and advice in support of infrastructure development on land, along the coast and on the seabed.

Fugro provides the people, equipment, expertise and technology that support the exploration, development, production and transportation of the world's natural resources. Fugro also provides its clients with the technical data and information required to design, construct and maintain structures and infrastructure in a safe, reliable and efficient manner.

Fugro Panama S.A. is one of Fugro's 250 companies operating in 60 countries globally with over 14,000 employees. They have operated in Panama since mid-2008.

About Cabo Drilling Corp. (TSX VENTURE:CBE)

Cabo Drilling Corp. is a drilling services company headquartered in North Vancouver, British Columbia, Canada. The Company provides mining specialty drilling services through its Canadian divisions in Surrey, British Columbia; Montreal, Quebec; Kirkland Lake, Ontario; and Springdale, Newfoundland; as well as Cabo Drilling (America) Inc. of the United States; Cabo Drilling (Panama) Corp. of Panama, Republic of Panama; Cabo Drilling Colombia Corp. of Colombia; 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: DHL and on the TSX Venture Exchange under the symbol: CBE.

ON BEHALF OF THE BOARD

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).

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.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contacts:
Cabo Drilling Corp.
Sheri Barton
Corporate Communications
403-217-5830

Cabo Drilling Corp.
Mr. John A. Versfelt
Chairman, President & CEO
604-527-4201
(604) 527-9126 (FAX)
ir@cabo.ca
www.cabo.ca

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