Cabo Drilling (Colombia) Corp. Awarded 20,000 Meter Drill Contract by Red Eagle Mining Corp.

NORTH VANCOUVER, BRITISH COLUMBIA -- (Marketwire - July 7, 2011) - Cabo Drilling Corp. (TSX VENTURE: CBE) (FRANKFURT: DHL) (“Cabo“ or the “Company“) announces that its wholly owned subsidiary, Cabo Drilling (Colombia) Corp., has been awarded a 20,000 meter drill contract by Red Eagle Mining de Colombia Limited, a wholly owned subsidiary of Red Eagle Mining Corporation (TSX VENTURE: RD) (“Red Eagle“). The drilling will take place on Red Eagle's Santa Rosa Property located in the Province of Antioquia, near the town of Santa Rosa de Osos, approximately 85kms NW of Medellin. Infrastructure is readily available in this area.

The Company has shipped two drills to Cartagena, Colombia, where they are expected to arrive on July 8, 2011. From Cartagena the drills will be mobilized to Red Eagle's Santa Rosa Property. The goal of the drill program will be to determine the extent of economic primary mineralization contained within the Santa Rosa vein stockwork systems.

“Colombia has welcomed our investment in this region and Cabo Drilling is excited to increase its presence in Colombia,“ stated Herb Butler, Cabo's General Manager in Panama and Colombia, “We believe that our commitment to safety and our innovative drilling solutions will prove to be an ongoing key to our success in Colombia.“


About Red Eagle Mining Corporation (TSX VENTURE:RD)

Red Eagle Mining Corporation is a gold exploration and development company with two flagship properties, the Santa Rosa and the Pavo Real, in the Middle Cauca Gold Belt of Colombia. The Santa Rosa project has been continuously mined for 400 years and Red Eagle has delineated over 60 colonial era sluice workings and over 280 adits and shafts which have been mined more recently. Red Eagle's Pavo Real project offers the potential for the discovery of a large sedimentary hosted gold deposit.


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 (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.
Mr. John A. Versfelt
Chairman, President & 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