Cabo Drilling Signs Alliance Agreement With Nunacor

NORTH VANCOUVER, BRITISH COLUMBIA -- (Marketwire - June 20, 2012) - Cabo Drilling Corp. (TSX VENTURE: CBE) ("Cabo" or the "Company") and Nunacor announce the signing of an Alliance Agreement whereby the parties will work together to seek out opportunities with exploration and mining companies within the Labrador region. Nunacor is the development corporation subsidiary of NunatuKavut Community Council ("NCC"), and is responsible for economic and business development of the NCC.

The Alliance Agreement will facilitate the provision of exclusive drilling contract services by Cabo to the mining companies with which Nunacor and NCC have cooperation agreements, and with customers and business partners of Nunacor and NCC within the NunatuKavut territory. The NunatuKavut Territory is the territory of the southern Inuit people of Labrador Canada and is located in south central Labrador, as far west as the Labrador Trough.

Nunacor and Cabo will carry out their best efforts to provide training and employment opportunities for the members of NCC, thereby encouraging and assisting with the development and growth of Inuit and Nunacor privately owned businesses. In addition, Cabo will work to maximize the employment of available and qualified NCC members, with the objective of advancing NCC members to increasingly responsible positions in accordance with their qualifications and capabilities.

Working within an alliance with Cabo will enable Nunacor to develop capacity and skill sets within the exploration and mining sectors and will enable Cabo to more visibly market its drilling services within the NunatuKavut territory. Furthermore, the alliance is providing Nunacor, NCC and Cabo with revenue generating and growth opportunities.

"We are very excited to enter into this business relationship with Nunacor," stated John A. Versfelt, President & CEO of Cabo Drilling Corp. "This kind of relationship provides benefits to local communities and businesses, as well as corporations, and is truly a win-win situation. We look forward to working closely with Nunacor and NCC, so as to develop and maintain strong and rewarding relationships within the NunatuKavut territory."

"We are so pleased to join with Cabo to increase our business capacity and development opportunities within our territory," says Todd Russell, President of NunatuKavut Community Council and Director of Nunacor. "Our people and communities have and want to contribute to good development on our lands. This agreement provides an opportunity to do just that. Cabo is a very reputable company in the industry and has a strong track record of working with aboriginal groups. This type of partnership is built on mutual respect and benefit."


About Nunacor

Nunacor is the development corporation subsidiary of NunatuKavut Community Council ("NCC"), and is responsible for the economic and business development of the NCC. The corporation was established in 2003 by the Labrador Metis Nation (now NunatuKavut). Nunacor offers expertise, stability, reliability and accountability through its many business partnerships. For more information, visit the Nunacor website (www.nunacor.com) or contact: Tara McLean, Executive Assistant to the President, NunatuKavut Community Council, (709) 896-0592 ext. 225, tmclean@nunatukavut.ca.


About NunatuKavut Community Council

The NunatuKavut Community Council is a registered, not-for-profit organization that represents the Southern Inuit of Labrador. It was established in the late 1970s, originally as the Labrador Metis Association, and later the Labrador Metis Nation. It represents a population of more than 6,000 members that reside in all areas of Labrador, and throughout Canada.


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; Montréal, Quebec; Kirkland Lake, Ontario; and Springdale, Newfoundland; as well as Cabo Drilling (Nevada) Inc. of the United States; Cabo Drilling (Panama) Corp. of Panama, Republic of Panama; Cabo Drilling Panama-Pacifico Corp. of Panama, Republic of Panama doing business as Cabo Drilling Colombia Corp.; 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
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.



Contact Information

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

Cabo Drilling Corp.
Mr. John A. Versfelt
Chairman, President & CEO
604-984-8894
http://www.cabo.ca