June 2, 2015

Cabo Drilling Corp. ("Cabo" or the "Company") (TSX-V:CBE) reports the results for its third quarter of fiscal year 2015, ended March 31, 2015.

3rd QUARTER HIGHLIGHTS

(1) In accordance with IFRS, reported gross profit and margin include certain depreciation expenses. For comparative purposes, adjusted gross margin is also shown excluding these depreciation expenses
(2) Earnings (Loss) before interest, taxes, and depreciation/amortization, stock-based compensation and other items ("EBITDA")
(3) Before changes in non-cash working capital items

The Company reports:

• Revenue for the third quarter fiscal 2015 ("Q3 FY2015") of $2.97 million compared to $4.81 million in the third quarter fiscal 2014 ("Q3 FY2014").
• Gross margin percentage for the quarter was 8.7% (with depreciation included in direct costs), compared with 2.7% in for the corresponding period last year.
• Negative EBITDA of $126,796 for the quarter compared to a negative EBITDA of $563,087, in Q3 FY2014, resulting in EBITDA per share of $0.00 for the quarter compared to $0.00 in Q3 FY2014.
• Net after tax loss for Q3 FY2015 was $747,845 or a loss of $0.01 per share (loss of $0.01 per share diluted), compared to net after tax loss of $1,936,936 or a loss of $0.02 per share (loss of $0.02 per share diluted) for the corresponding period last year.
• Cash from operations, before changes in non-cash working capital items, was negative $434,335 for Q3 FY2015, compared to negative $874,717 for Q3 FY2014.

"Cabo generated revenues of $2.97 million during the third quarter of fiscal 2015 and $10.64 million for the nine months ending March 31, 2015," stated Mr. Versfelt, Cabo's President & CEO. "This represents a 38% decrease compared to the $4.81 million recorded in the third quarter of fiscal 2014 and 42% decrease compared to the nine month period ended March 31, 2015."

"Gross margin, adjusted to include depreciation, was 10.3% or $1.10 million in the first nine months of fiscal 2015, as compared to 9.9% in the first nine months of fiscal 2014," stated Mr. Versfelt. "In accordance with IFRS, depreciation expenses of $1.52 million are included in direct costs as compared to $1.79 million in fiscal 2014. Adjusted gross margin, when depreciation expense is excluded from direct costs, is 24.6% in the first nine months of fiscal 2015, as compared to 19.7% in the comparable period in fiscal 2014." "The Company reports negative EBITDA of $27,916 during the first nine months of fiscal 2015, compared to negative EBITDA of $561,680 in the comparable period in fiscal 2014" stated Mr. Versfelt.

"General and administration costs decreased by 40% when compared to the first nine months of fiscal 2014. The decrease is a direct result of restructuring activities that began in fiscal 2014 and continued in the first nine months of fiscal 2015," commented Mr. Versfelt. In addition, "total liabilities decreased by $1.37 million during the first nine months of fiscal 2015 to $11.73 million at March 31, 2015,"

Mr. Versfelt, commenting on the Company's debt, noted that "the Company has engaged financial advisors to assist in refinancing or replacing the $2.705 million debentures and the $1.4 million equipment loan, the repayments of which are due in May, 2015. These debts are categorized as current debt, thus negatively affecting working capital. Management is confident that it will obtain new financing facilities or that these facilities will be renegotiated in 2015. Several other Company loans are scheduled to be paid out during the first quarter of fiscal 2016." Furthermore, "the Company is in arrears on its debenture and equipment loan interest payments. The Company will be entering into a Forbearance Agreement with its $1.4 million lender, pursuant to which, among other things, the Company's lender has agreed to forbear from taking steps to demand repayment of the amounts owing under the credit agreements between the Company and the lender, to enable the Company to obtain alternate financing on or before June 30, 2015. This date could be extended by the lender, at its discretion."

"The Company is currently in second stage discussions for no less than $2.0 million in debt financing to replace the $1.4 million lender. It is also exploring additional finance opportunities in Central America and Canada to continue the restructuring of the Company's debenture debt," commented Mr. Versfelt"

Mr. Versfelt observed, "all areas of the mineral exploration and mining sectors are experiencing significant downward revaluation, write downs, major asset sales, and mining company mergers resulting in substantial reduction of capital expenditure programs in the larger and intermediate mining sector. Consequently, we see no improvement in core drilling demand in 2015."

Consolidated Quarterly Financial Results
Revenue for the quarter ending March 31, 2015, decreased $1.83 million, or 38%, to $2.97 million, compared to $4.81 million in the third quarter of fiscal 2014. The primary reason for the decrease is due to reduced global demand for drilling, particular in Europe, as a result of projects being scaled back, delayed, terminated, or political country pressure.

Revenues from surface drilling services decreased 48%, from $3.89 million in the third quarter of fiscal 2014 to $2.03 million in the third quarter of fiscal 2015, largely due to the early completion or termination of drilling projects with major mining clients in Canada and reduced drill utilization in Panama. Revenues from reverse circulation programs decreased to nil in the third quarter of fiscal 2015 from $130,206 in the comparable period in fiscal 2014 due to no demand in the Labrador iron ore formations, resulting from the collapse of global iron ore prices. Underground drilling increased by 40% in the third quarter of fiscal 2015, to $942,897, as compared to $674,212 in the comparable period in fiscal 2014, primarily as a result of improved productivity and utilization in Canada.

Direct costs for the quarter ended March 31, 2015, were $2.72 million compared to $4.68 million in the quarter ending March 31, 2014, as adjusted to include depreciation, in accordance with IFRS. The decrease is a direct result of the decreased activity in fiscal 2015. Gross margins, under IFRS reporting, for the quarter ended March 31, 2015, were 8.7% compared to 2.7% during the quarter ending March 31, 2014.

General and administrative expenses decreased by $601,869 from $1.41 million for the third quarter of fiscal 2014 to $808,089 in the third quarter of fiscal 2015. The decrease is a direct result of reduced administration staff, lower investor relations costs, lower insurance and professional fees and lower office administration costs in all divisions. Further staffing reductions were made subsequent to the quarter end in the restructuring of the Canadian operations. These reductions will result in a continued improvement to the bottom line in the fourth quarter, fiscal 2015, and in 2016, and will enhance the cash flow and EBITDA numbers.

The Company incurred a $168,370 finance and accretion interest expense during the third quarter of fiscal 2015, compared to $216,170 incurred during the third quarter of fiscal 2014. The decrease can be directly attributed to the reduction of debt. Cabo continues to accrue interest on the $2.70 million debentures.

Net loss for the third quarter of fiscal 2015 is $747,845 compared to a net loss of $1.94 million in the third quarter of fiscal 2014.

We believe we are near the bottom of the worst global mining market that anyone in the business today has experienced. We do not believe there will be any dramatic turnaround in the industry for the next year. In the meantime, the Company has announced that it is expanding its services in the mining sector to the infrastructure sector. This will, over time, include offering geotechnical services, tree cutting & clearing services and other services in the road building and general contracting sector, the pipeline sector, the hydropower sector and the oil & gas sector.

Financial Statements and Management's Discussion and Analysis are available on the Company's website (www.cabo.ca) and on SEDAR (www.sedar.com).

About Cabo Drilling Corp. (TSX-V: CBE)
Cabo provides services to the mining industry and is expanding its operations to offer its services to the utilities, pipeline, forest products, road building, and concrete construction industries. Cabo will be providing a comprehensive range of infrastructure products and services, as well as engineered construction solutions globally for customers in a diverse cross-section of industries that are located in selected world markets. Cabo currently has operations in six countries. Further information about Cabo can be found in the disclosure documents filed by Cabo with the securities regulatory authorities, available at www.sedar.com and on the Company website at www.cabo.ca. 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 Drilling website (http://www.cabo.ca) and SEDAR (www.sedar.com) or by contacting Ms. Jolene Timmer, Corporate Communications or Mr. John A. Versfelt, Chairman, President & CEO at 604-527-4201.

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The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. 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.