Cabo Drilling Signs Alliance Agreement With Torngat Services Limited

NORTH VANCOUVER, BRITISH COLUMBIA -- (Marketwire - June 27, 2012) - Cabo Drilling Corp. (TSX VENTURE:CBE) ("Cabo" or the "Company") and Torngat Services Limited ("Torngat") announce the signing of an Alliance Agreement whereby the parties will work together to seek out contract drilling opportunities with exploration and mining companies within the Labrador region.

Torngat is an Inuit Business, and has the rights to conduct business on the lands in the Nunatsiavut Territory in Labrador, Canada. Through its current agreements and relationships, Torngat has agreed to work with Cabo as an exclusive supplier of drilling services to Inuit Impact Benefit Agreement projects.

As part of the Alliance Agreement the Company will manage the alliance projects and will work with Torngat to provide training and employment opportunities to qualified Nunatsiavut Beneficiaries. The objective of the Alliance Agreement partners is to provide contract drilling services in the Nunatsiavut Territory and to advance Nunatsiavut Beneficiaries to increasingly responsible positions, within the drilling services sector, in accordance with their qualifications, training and capabilities.

Working within the Alliance Agreement will enable Torngat 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 Nunatsiavut territory. Furthermore, the alliance will provide Torngat and Cabo with revenue generating and growth opportunities.

"This is the second alliance agreement we have entered into within the Labrador region within the last month," states John A. Versfelt, President & CEO of Cabo Drilling Corp. "I firmly believe these kinds of agreements are beneficial to both the local communities and businesses as well as to companies such as Cabo. I look forward to working under our alliance agreement with Torngat to create opportunities for employment and training for the Nunatsiavut Beneficiaries and provide Cabo's drilling services to the Nunatsiavut Territory."

"Torngat is very pleased to be working with Cabo on this Alliance and we look forward to a beneficial working relationship within the Labrador region," says Wyman Jacque, President of Torngat Services Limited.


About Torngat Services Limited

Torngat is an Inuit owned services company that is focused on drilling, engineering and construction services.


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; 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.; 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) or by contacting Sheri Barton, Corporate Communications at 403-217-5830 or Mr. John A. Versfelt, Chairman, President & CEO of the Company at 604-984-8894.

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.
John A. Versfelt
Chairman, President and CEO
(604) 984-8894
(604) 983-8056 (FAX)
ir@cabo.ca
www.cabo.ca