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

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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Cabo Drilling Corp.
Sheri Barton
Corporate Communications
403-217-5830


Cabo Drilling Corp.
Mr. John A. Versfelt
Chairman, President & CEO
604-527-4201
[phone] (FAX)
[e-mail]
www.cabo.ca