Cabo Drilling Signs Alliance Agreement with Dawn-Works Inc.

NORTH VANCOUVER, BRITISH COLUMBIA -- (Marketwire - Sept. 12, 2012) - Cabo Drilling Corp. (TSX VENTURE:CBE) ("Cabo Drilling" or the "Company") and Dawn - Works Inc. announce the signing of an Alliance Agreement whereby the parties will work together to seek out drilling service contracts with exploration and mining companies within the Labrador region.

Dawn - Works Inc. will facilitate collaboration and engagement between our Strategic Partners and contracting agents, specifically where bidding opportunities exist under Aboriginal Impact and Benefit Agreements (IBA), preferential conditions for First Nations participation, or any other noted conditions as set forth and established by law for registered Aboriginal Corporations.

As part of the Alliance Agreement, Dawn - Works Inc. has agreed that Cabo Drilling will be the exclusive supplier of drilling services to mining companies with which Dawn - Works Inc. has bidding opportunities under any and all Aboriginal Impact and Benefit Agreement projects or other agreements set into law for First Nations corporations. Dawn - Works Inc. will also provide insight into availability of local resources, establish guidance for working on Land Claim areas, assist in negotiating with national, provincial and local authorities, identify opportunities for First Nations participation, and establish overall marketing, promotional and public relation activities on behalf of the alliance within the Territory.

This Alliance Agreement, along with previous alliance agreements signed with Nunacor Inc. and Torngat Services Limited, will facilitate the provision of exclusive drilling contract services by Cabo Drillingto the mining companies within the Labrador region with projects located within the jurisdiction of Cabo Drilling's alliance partners.

"We are very pleased to have entered into this business relationship with Dawn - Works Inc.," stated John A. Versfelt, President & CEO of Cabo Drilling Corp. "This Alliance Agreement, along with the previous alliance agreements signed with Nunacor Inc. and Torngat Services Limited, places Cabo Drilling in a position to not only expand its drilling services market, but to also provide employment and training opportunities to its alliance partners. We look forward to working with all involved to create a favourable working environment and build strong, lasting relationships."

"As a leading global provider of drilling services and having a strong and positive history working with various Aboriginal groups, Cabo Drilling is the ideal partner to help spearhead our expansion into the Atlantic Region," said David Chaulk, President at Dawn - Works Inc. "We look forward to working hand-in-hand with Cabo Drilling to bring economic and environmental benefits to the Atlantic Region."

"The complementary nature of Dawn - Works Inc. and Cabo Drilling's expertise will drive new insights, solutions and efficiencies to further advance the two companies. We have a shared vision to create local Aboriginal resources that deliver valuable and cost effective solutions to the region that will increase economic participation and open up new opportunities to the Aboriginal people.We are very excited about the training and employment opportunities this new relationship promises," said Jim Maloney, VP at Dawn - Works Inc.

The Company also announces that it has entered into agreements to satisfy outstanding indebtedness of approximately $108,000 in trades payable and loans by the issuance of 1,200,000 common shares at a deemed price of $0.09 per share. The indebtedness includes $40,500 debt owed to an insider of the Company.The issuance of the shares is subject to the approval of the TSX Venture Exchange. When approved, the issued shares will be subject to a hold period and will not be freely tradable for four months and one day from the date of issuance.


About Dawn - Works Inc.

Dawn - Works Inc. is a Federally Incorporated Company, registered under the CBCA, it is recognized at the Federal, Provincial and Territorial levels and by all First Nations Governments and Aboriginal Organizations. Dawn - Works Inc. is a majority owned Aboriginal firm, having representatives from various aboriginal groups in Atlantic Canada.

Based out of Atlantic Canada, the role of Dawn - Works Inc. is to seek out, cultivate and promote relationships with Strategic Alliance Partners who have established specialized skills, services and product offerings. The intent is to add value to their partner's offerings by identifying local labor training and resources, and assisting in the management of the Teaming Agreements. The combined resources of Dawn - Works Inc. and their Strategic Alliance Partners shall seek out opportunities; participate in bidding and securing work with public and private sector groups such as Cabo Drilling Corp.


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, symbol 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: 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 Company's 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

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

Cabo Drilling Corp.
Mr. John A. Versfelt, Chairman, President & CEO
604-984-8894