Cabo Announces 1st Quarter Results

Facsimile: (604) 983-8056

Facsimile: (604) 983-8056

e-mail: ir@cabo.ca CONTACT: John A. Versfelt, Chairman, President and CEO web site: www.cabo.ca Cabo Announces 1st Quarter Results North Vancouver, BC - Cabo Drilling Corp. ("Cabo" or the "Company") (TSX-V:CBE) today reported results for its fiscal year 2010 first quarter ended September 30, 2009. 1st QUARTER HIGHLIGHTS

(CDN $000s, except earnings Q1 - 2010 Q1 - 2009 FY 2009 per share) Sept. 30 Sept. 30 June 30 Revenue 6,340 16,617 41,162 Earnings (Loss) Before Interest, Taxes, Amortization, 482 2,504 6,773 Stock Based Compensation and Other Items (EBITDA) Net Earnings (Loss) Before (463) 1,695 408 Taxes Net Earnings (Loss) After (463) 1,090 (847) Taxes Earnings (Loss) per Share ($) (Basic and Diluted) Before Interest, Taxes, Amortization, (0.01) 0.05 0.08 Stock-based Compensation and Other Items (EBITDA) Earnings (Loss) per Share ($) (0.01) 0.02 (0.02) (Basic and Diluted) Cash from Operations* 388 1,821 2,060 Gross Margin % 29.1% 26.0% 26.7% Working Capital (deficiency) 4,706 7,716 4,588

*before changes in non-cash working capital items "The first quarter of fiscal 2010 reversed the trend of three consecutive quarters of reduced revenues compared to the previous quarter, giving us renewed optimism that the Company has experienced the bottom of the cycle. The Company has drills operating in all regions at this time." stated John A. Versfelt, Cabo's President & CEO. "Drill utilization has increased in all divisions with new signed contracts in Atlantic, Pacific, Mexico and Europe divisions and a more substantial increase in the Ontario division. " "General and administration costs have decreased in the first quarter of fiscal 2010 by 24% compared to the first quarter of fiscal 2009 and 17% compared to the fourth quarter of fiscal 2009," noted Mr. Versfelt. "This is a result of the salary and wage reductions, restructuring, and improved control costs. Management expects additional efficiencies through the use of technology, and expects general and administration expenses in the range of $5.2 million to $5.6 million for the fiscal year 2010." "Gross margins remained consistent for the first quarter of fiscal 2010 at 29.1% compared to 29.6% in the fourth quarter of fiscal 2009 and improved from the 26.0% recorded in the 1st quarter of fiscal 2009," stated John A. Versfelt. "The Company is experiencing improved cost controls, reduced unit costs, more efficient purchasing, wage reductions and better supervision. All these changes have resulted in the gross margin averaging 29% for the previous two quarters." "The Company recorded a net loss of $463,495 during the 1st quarter of fiscal 2010 or $0.01 loss per share compared $1.09 million or $0.02 earnings per share in the 1st quarter of fiscal 2009," noted John A. Versfelt. "EBITDA decreased to $482,152 during the first quarter of fiscal 2010, compared to $2.50 million in the previous corresponding period." "As stated at the end of fiscal 2009, the Company is receiving more bid requests. Gold is leading the way in Canada, as well as in Mexico and Central America," said Mr. Versfelt. "Copper and iron ore projects are also requesting bids for drilling services. Consequently, Cabo Drilling is experiencing and projecting growth in drill utilization for the balance of fiscal 2010." First quarter ended September 30, 2009 Revenue for the quarter ending September 30, 2009 decreased $10.28 million or 62% to $6.34 million, compared to $16.62 million in the first quarter of fiscal 2009; however it improved from $6.20 million recorded in the fourth quarter fiscal 2009. The primary reason for the decrease is due to the contraction of the drilling market that began in the Fall of 2008 as a result of the economic downturn. Net loss for the first quarter of fiscal 2010 was $463,495 compared to net earnings of $1.09 million in the first quarter of fiscal 2009.

For the full version of this news release please go to the Company's website www.cabo.ca or SEDAR www.sedar.ca.

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 de Mexico S.A. de C.V. of Hermosillo, Mexico; 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; Cabo Drilling (Ghana) Limited of Accra, Ghana; 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 (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. * * * * 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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