Cabo Drilling Corp. Awarded Contract Extension by Armistice Resources Corp.

NORTH VANCOUVER, BRITISH COLUMBIA -- (Marketwire - July 20, 2011) - Cabo Drilling Corp. (TSX VENTURE: CBE) ("Cabo" or the "Company") announces that Cabo Drilling (Ontario) Corp. has been awarded a contract extension from Armistice Resources Corp. at its McGarry Project located at Virginiatown, Ontario.

The Company will utilize two surface drills for the projects. One drill will continue drilling the former prolific Kerr Addison Mine area and the second drill has been mobilized for surface drilling on the McGarry mine site.

Experience with custom-designed drills, and the ability to problem solve up-front, enables Cabo Drilling (Ontario) Corp. to develop workable solutions for most drilling circumstances facing the mining and exploration industry.


About Armistice Resources Corp.

Armistice Resources, a Canadian-based exploration and development company, expects to begin gold production in the 2011 fourth quarter from its McGarry Mine in the Kirkland Lake area of northeastern Ontario. The McGarry Mine is located in Virginiatown on the prolific Larder Lake-Cadillac Break that extends 200 km east-west straddling the Ontario and Quebec border and that has produced 95 million ounces of gold. The McGarry Mine is adjacent to the Kerr-Addison Gold Mine that has produced more than 11 million ounces of gold. Armistice has signed a definitive five-year option agreement for the purchase of up to 100 percent of the mineral rights on the Kerr- Addison property. The McGarry Mine consists of 33 contiguous patented mining claims, including three licenses of occupation, totaling 484 hectares.


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.; Cabo Drilling Spain S.L. of Sevilla, Spain; 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 Information

Cabo Drilling Corp.
Sheri Barton
Corporate Communications
403-217-5830

Cabo Drilling Corp.
John A. Versfelt
Chairman, President and CEO
604-984-8894
ir@cabo.ca
www.cabo.ca

General Investor Relation Inquiries
Renmark Financial Communications Inc.
Barbara Komorowski
514-939-3989 or 416-644-2020
bkomorowski@renmarkfinancial.com

Renmark Financial Communications Inc.
Dan Symons
514-939-3989 or 416-644-2020
dsymons@renmarkfinancial.com