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Cabo Awarded Drilling Contract By Cline Mining Corporation and Closes $3.25 Million Private Placements

Posted on: Thursday, 18 January 2007, 15:00 CST

NORTH VANCOUVER, BC, Jan. 18 /PRNewswire-FirstCall/ -- Cabo Drilling Corp. (TSX-V: CBE) ("Cabo" or the "Company") announces that its Heath & Sherwood Drilling Inc. division of Kirkland Lake, Ontario has been awarded a second drilling contract by Cline Mining Corporation. The first contract was awarded to Heath & Sherwood in the fall of 2005 and consisted of drilling two, 1500 feet deep, strategically placed drill holes near the old mine site on the Cline Lake Gold property. The recently awarded contract is for an additional 10,000 feet of BQ core diamond drilling on the previously untested Edwards target on the Cline Lake Gold property (See Cline's news release dated October 17, 2006).

The drilling project commenced near the middle of December, 2006 and is utilizing a JKS Boyles BBS - 56 diamond drill. The drill project is comprised of nine diamond drill holes to be drilled in three sections, three holes per section, to varying vertical depths down to 2000 feet. The Cline Lake property is located 50 kilometres northeast of Wawa, Ontario.

The Company also announces completion of brokered and non-brokered private placements announced November 23, 2006. The placements were 8,663,867 units at $0.375 per unit, to 34 placees, each unit comprised of one share and one share purchase warrant entitling the holder to purchase one additional share for $0.50 per share for a two-year period to December 29, 2008, provided that if the closing price of the Company's common shares is $0.60 or greater for 20 consecutive trading days following the four-month hold period, the Company may, upon notice to the subscribers, reduce the exercise period to 20 days from the date of such notice. The shares and warrant shares are subject to a four month hold period ending April 29, 2007. Pro group participant in the placement is Michael Winiker for 40,000 units and $169,006 and 240,643 shares were paid and issued respectively as finder's fees to Barbara Evers, Jonathan Steele, Varela Consulting Group SA, Sedona AG, UBS AG, and Raymond James Ltd.

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 subsidiaries Advanced Drilling Ltd. of Surrey, British Columbia; Forages Cabo Inc. of Montreal, Quebec; Heath & Sherwood Drilling Inc., of Kirkland Lake, Ontario; and Petro Drilling Company Limited of Springdale, Newfoundland. The Company's common shares trade on the TSX Venture Exchange under the symbol: CBE.

ON BEHALF OF THE BOARD "John A. Versfelt" John A. Versfelt Chairman, President and CEO

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. 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.

CONTACT: about the Company can be found on the Cabo website (http://www.cabo.ca/) and SEDAR (http://www.sedar.com/) or by contacting Investor Relations Ms. Sheri Barton at 403-217-5830 or Mr. John A. Versfelt, Chairman, President & CEO of the Company at 604-984-8894

Cabo Drilling Corp.

CONTACT: about the Company can be found on the Cabo website(http://www.cabo.ca/) and SEDAR (http://www.sedar.com/) or by contacting InvestorRelations Ms. Sheri Barton at 403-217-5830 or Mr. John A. Versfelt, Chairman,President & CEO of the Company at 604-984-8894

Source: PRNewswire-FirstCall

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