Cabo Drilling Signs Alliance Agreement With Nunacor

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, [phone] ext.
225, [e-mail].


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;
Montreal, 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.