North Vancouver, BC - Cabo Drilling Corp. ("Cabo" or the "Company") (TSX-V:CBE) and the Tahltan Nation Development Corporation ("TNDC") are pleased to announce the signing of an Agreement ("Agreement") whereby the parties will work jointly to provide drilling services. The venture will operate under Tahltan Drilling Services Corporation ("Tahltan Drilling") which is 51% owned by a company affiliated with TNDC and 49% owned by a Cabo subsidiary. The Agreement will facilitate the provision of drilling services by the Company in the traditional territory of the Tahltan Nation and the development of relationships with other First Nation groups in British Columbia. Cabo will work closely with the TNDC, providing training and safety programs to benefit and ensure success for both the TNDC and the Company. Through this Agreement TNDC will acquire the required equipment and knowledge to expand its exploration and construction expertise into the drilling services sector and will provide increased employment opportunities as the business expands.

Under the Agreement, TNDC will provide general labour, drill operators, drill helpers and other personnel to Tahltan Drilling to assist in the performance of mineral exploration drilling, development drilling and mine drilling. Cabo will provide the venture with drilling services management and supervision, as well as drills, consumables, parts, tools, supplies and other materials and equipment.

"We are pleased to have entered into this business relationship with Tahltan Nation Development Corp.," stated John A. Versfelt, President & CEO of Cabo Drilling Corp. "This kind of relationship brings the First Nations communities into the drilling services industry as meaningful players. We look forward to working closely with Tahltan Nation Development Corp. in the development and maintenance of a strong business. This relationship is essential in order to build a genuine business that will benefit the Tahltan Nation, Cabo and our customers."

"TNDC is extremely pleased to have Cabo as our Partner in Tahltan Drilling. This is an excellent opportunity to take advantage of the drilling opportunities in our area and implement a training program and expand the capacity of our members", stated Bill C. Adsit, President & CEO of Tahltan Nation Development Corporation.

About the Tahltan Nation Development Corporation
Tahltan Nation Development Corporation is a business corporation owned by the people of the Tahltan Nation through the Telegraph and Iskut Bands and the Central Council. Tahltan Nation Development Corporation was established in 1985 with a mandate of creating jobs and participating effectively in the economic activity in the traditional territory of the Tahltan people. For further information visit the corporation's website: www.tndc.ca.

About Cabo Drilling Corp.
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; Montr�al, Quebec; Kirkland Lake, Ontario; and Springdale, Newfoundland; as well as Cabo Drilling de Mexico S.A. de C.V. of Hermosillo, Mexico; Cabo Drilling (Panama) Corp. of Panama, Republic

ON BEHALF OF THE BOARD

"John A. Versfelt"

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. For general investor relation inquiries you may also contact Renmark Financial Communications Inc. Barbara Komorowski: komorowski@renmarkfinancial.com or Dan Symons: dsymons@renmarkfinancial.com at Tel: 514-939-3989 or 416-644-2020.