Cabo Drilling to Offer $1.5 Million Private Placement

VANCOUVER, BC -- (Marketwire) -- 02/16/11 --

Cabo Drilling Corp. /

CABO DRILLING TO OFFER $1.5 MILLION PRIVATE PLACEMENT

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

'This significant working capital injection will strengthen the
Company's
balance sheet and enable the Company to continue expanding its drilling
capacity
at a time when the demand for drills is growing steadily,' states Cabo's
CEO and
President, Mr. John Versfelt.'

The Company will use the proceeds of the private placement for working
capital.

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 (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 Arash
Shahi:
ashahi@renmarkfinancial.com at Tel: 514-939-3989 or 416-644-2020.

* * * *

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.

--- 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 of
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(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