Cabo Drilling Corp. Awarded Labour Contract at Canadian Zinc's Prairie Creek Minesite

NORTH VANCOUVER, BRITISH COLUMBIA -- (Marketwire - Aug. 16, 2012) - Cabo Drilling Corp. (TSX VENTURE:CBE) ("Cabo" or the "Company") announces that Cabo Drilling (Pacific) Corp. has been awarded a labour contract for shallow and deep hole drilling at Canadian Zinc Corporation's Prairie Creek Minesite located in the Northwest Territories, Canada.

Under the terms of the contract, Cabo Drilling will provide drill crews and supervision for 2 skid mounted diamond drill rigs on Canadian Zinc's fly-in Prairie Creek property. Drilling on this project includes specialty drilling, with depths of up to 1,900 m and multiple wedges.

Cabo will work closely with Canadian Zinc to provide consultation and technical assistance, with respect to drilling techniques and procedures, drilling operations management, drill equipment requirements, safety and environmental procedures and policies, down hole products and consumables and drilling additives.

"I believe this is a wonderful opportunity for Cabo to work together with the very professional people of Canadian Zinc to further develop a significant deposit," stated John Versfelt, Cabo's CEO and President, "we will be sharing our knowledge and expertise to carry out a safe and environmentally prudent drilling program, as well as become part of a training team focused on the communities surrounding Canadian Zinc's Prairie Creek project. This is great!"

Cabo Drilling offers drilling services to major, mid-tier and junior mining and exploration companies and provides expertise in projects ranging from early-stage reconnaissance drilling through to resource definition and advanced stage mining.


About Canadian Zinc Corporation

Canadian Zinc Corporation is a Toronto-listed exploration and development company, trading under the symbol CZN on the Toronto Stock Exchange, under "CZICF" on the Over the Counter, OTCQB in the US, and under the symbol "SRS" on the Frankfurt Exchange. The company's primary project is the Prairie Creek Zinc, Silver, Lead Mine in the Northwest Territories, Canada, with Measured and Indicated Resources of 5,431,000 tonnes grading 10.8% zinc, 10.2% lead, 160 g/t silver, 0.31% copper and Inferred Resources of 6,239,000 tonnes grading 14.5% zinc, 11.5% lead, 229 g/t silver and 0.57% copper.


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 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 (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

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