Cabo Announces Annual and Fourth Quarter Results North Vancouver, BC – Cabo Drilling Corp.

(“Cabo” or the “Company”) (TSX-V: CBE) reports results for its fourth quarter and fiscal year ended June 30, 2010. 4th QUARTER & ANNUAL HIGHLIGHTS (CDN $000s, except earnings per share) 3 months ending June 30-10 3 months ending June 30-09 FY 2010 FY2009 Revenue 8,158 6,197 28,986 41,162 Net Earnings (Loss) Before Interest, Tax, Amortization, Stock-based Compensation and Other Items (EBITDA) 75 (62) 1,546 3,981 Net Earnings (Loss) Before Taxes (819) (1,028) (2,208) 408 Net Earnings (Loss) After Taxes (107) (1,192) (1,496) (847) Earnings (Loss) per Share ($) Basic Before Interest, Tax, Amortization, Stock-based Compensation and Other Items (EBITDA) 0.00 0.00 0.03 0.08 Earnings (Loss) per Share ($) Basic 0.00 (0.02) (0.02) (0.02) Cash from operations* (60) (339) 1,057 2,060 Gross Margin % 19.4% 28.4% 25.3% 26.7% Working Capital 5,744 4,578 5,744 4,578 *before changes in non-cash working capital items The Company reports: Revenue of $8.16 million for the 4th quarter of 2010 compared to 4th quarter revenue of $6.20 million in fiscal 2009 and revenue of $28.99 million in fiscal 2010 compared to $41.16 million in fiscal 2009. Net 4th quarter 2010 earnings before interest, tax, amortization, stock-based compensation and other items of $74,056 and a net loss of $107,119 after interest, tax, amortization, stock-based compensation and other items resulting in EBITDA of $0.00 per share and a loss of $0.00 per share, respectively.

This compares with the 4th quarter 2009 net loss before interest, tax, amortization, and stock-based compensation of $61,635 and net loss of $1.19 million after interest, tax, amortization, and stock-based compensation, resulting in a EBITDA of $0.00 per share and a loss of $0.02 per share respectively. Net before tax loss for the fiscal year 2010 of $2.21 million compared to a net before tax earnings for fiscal 2009 of $407,905. Net after tax loss for the fiscal year 2010 of $1.50 million compared to a net after tax loss for fiscal 2009 of $846,909. Gross margin percentage for the 4th quarter fiscal 2010 was 19.4%, compared with a gross margin of 28.4% in the 4th quarter of fiscal 2009 and 25.3% in fiscal 2010 compared to 26.7% in fiscal 2009. Cash from operations, before changes in non-cash working capital items, for the 4th quarter 2010 was ($60,015) and $1.06 million for fiscal 2010, compared to 4th quarter 2009 cash from operations of ($339,131) and $2.06 million for the fiscal year 2009. A current asset balance of $19.20 million and working capital of $5.74 million. Total assets of $33.99 million and total liabilities of $15.25 million. “During the fourth quarter of fiscal 2010, we experienced an increase in demand for our drilling services.

Revenue for the three months ending June 30, 2010 increased to $8.16 million, compared to $6.20 million in the comparable period in fiscal 2009 and compared to $6.51 million in the third quarter of fiscal 2010.

Revenues from the Canadian divisions represented 74% of the revenues for the fourth quarter of fiscal 2010, as compared to 35% during the fourth quarter of fiscal 2009,” stated John Versfelt, President and CEO of Cabo. “Revenue for the year ending June 30, 2010 decreased $12.17 million or 30% to $28.99 million, compared to $41.16 million in fiscal 2009; however $28.44 million of fiscal 2009’s gross revenue was earned in the first half of the year prior to December 31, 2008.

The primary reasons for the decrease in fiscal 2010 revenue are, the reduced international activity, as our contracts in Spain and Albania were completed in the third quarter of fiscal 2009, lower drill utilization in Panama during fiscal 2010 compared to fiscal 2009, and continued low demand in Mexico.

These factors resulted in a 57% decrease in international revenues.

All Canadian divisions were negatively affected by the contracted drilling services market until the fourth quarter of fiscal 2010.” ...

Click here to read full report ... 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; Montréal, Quebec; Kirkland Lake, Ontario; and Springdale, Newfoundland; as well as Cabo Drilling (Panama) Corp.

of Panama, Republic of Panama; Cabo Drilling Spain S.L. of Sevilla, Spain; 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” John A.

Versfelt Chairman, President and CEO Further information about the Company can be found on the Cabo website ) 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: or Arash Shahi: at Tel: 514-939-3989 or 416-644-2020. * * * * 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.
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