Cabo Drilling Corp. Awarded Contracts by Century Iron Mines Corporation

NORTH VANCOUVER, BRITISH COLUMBIA -- (Marketwire - Aug. 7, 2012) - Cabo Drilling Corp. (TSX VENTURE:CBE) ("Cabo Drilling" or the "Company") announces that Cabo Drilling (Ontario) Corp. has been awarded a drilling contract and a labour contract by Century Iron Mines Corporation ("Century Iron").

Under the terms of the contracts Cabo Drilling will provide and operate an Acker reverse circulation drill as well as provide drill crews and supervision for two of Century Iron's drills on their Schefferville and Joyce Lake projects near Schefferville in the provinces of Quebec and Labrador.

"We are pleased to offer a custom tailored drill program to fulfill our customers' unique requirements," states Company President John Versfelt. "Since the initiation of our innovative customer relations philosophy, in which we focus on how we can meet and exceed our customers' vision, our client relationships with existing clients have grown and new relationships have developed and strengthened allowing us to develop niche drilling opportunities with exceptional clients."

Cabo Drilling offers drilling services to major, mid-tier and junior mining and exploration companies and provides expertise in projects ranging from early-stage reconnaissance drilling through to resource definition and advanced stage mining.


About Century Iron Mines Corporation

Century Iron Mines Corporation is a mining company with mineral exploration and development activities focused on iron ore. Listed on the TSX, it has iron ore rich mining properties in Western Quebec south of James Bay and in the well-known Labrador trough that spans North-Eastern Quebec and Western Newfoundland and Labrador.


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.; 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
604-983-8056 (FAX)
ir@cabo.ca
www.cabo.ca