Cabo Drilling (Colombia) Corp. Awarded 17,000 Meters by Red Eagle Mining Corporation

Cabo Drilling Corp. (TSX VENTURE:CBE)(FRANKFURT:DHL) ("Cabo Drilling" or the
"Company") announces that Cabo Drilling (Colombia) Corp. ("Cabo Colombia") has
renewed its contract with Red Eagle Mining Corporation ("Red Eagle") for an
additional 17,000 meters of drilling on Red Eagle's Santa Rosa project in the
District of Antioquia. Under the terms of the renewed contract Cabo has agreed
to supply two additional man-portable drill rigs; the additional rigs will join
two skid mounted rigs that are already in place on the property. Both parties
have agreed to proceed with the next phase of the drilling program under the
terms of the previous contract, signed June 2011. Three rigs are currently
drilling on the property and the fourth rig, a CABO-1000, recently arrived on
site.


"Although the economic boom in Colombia has slowed over the past year, Cabo
Colombia continues to expand operations with key repeat clientele and is adding
newer modern drills to our fleet," comments Herb Butler, General Manager of
Cabo's Central American operations. "People are starting to see the positive
impact that Cabo is having in Colombia when partnered with clients like Red
Eagle, and they are experiencing the Social and Economic benefits that Mining
companies bring to their communities."


Cabo Colombia, with two field offices in Colombia, continues to train Colombian
Drillers and build a local workforce. The main office in Bucaramanga supports
the Santander District and a satellite office in Medellin supports the Antioquia
District. The Santander and the Antioquia Districts are the two most actively
explored districts in Colombia and have strong Artisanal Mining histories.


About Red Eagle Mining Corporation 

Red Eagle Mining Corporation is a well-financed gold exploration and development
company with an experienced mine development team. Red Eagle Mining is currently
developing the 390 km2 Santa Rosa gold project located in Colombia. Santa Rosa
is an intrusive hosted structurally-controlled quartz stock-work system within
the prolific Cretaceous Antioquia Batholith. Gold mining within the Santa Rosa
project pre-dates the 16th century when an estimated 30 million tonnes were
mined. Santa Rosa is located 70km north of Medellin near the town of Santa Rosa
de Osos in a region characterized by gently rolling hills and excellent
infrastructure. Santa Rosa is also located approximately 30km west of AngloGold
Ashanti's Gramalote gold deposit (2.5 million ounce M&I resource grading 0.8 g/t
Au) and 40km east of Continental Gold's Buritica gold deposit (1.6 million ounce
M&I resource grading 13.6 g/t Au). Red Eagle Mining also holds an extensive
package of exploration ground in Colombia, including the Pavo Real project in
the Mid-Cauca gold belt. Red Eagle is committed to developing the first modern
gold mine in Colombia.


About Cabo Drilling Corp. (TSX VENTURE:CBE)

Cabo Drilling Corp. is a drilling services company headquartered in New
Westminster, 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 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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Cabo Drilling Corp.
Sheri Barton
Corporate Communications
[phone]


Cabo Drilling Corp.
Mr. John A. Versfelt
Chairman, President & CEO
[phone]
[phone] (FAX)
[e-mail]
www.cabo.ca