Cabo Announces Annual and Fourth Quarter Results

VANCOUVER, BC, Oct 29 (MARKET WIRE) --

Telephone: (604) 984-8894

Facsimile: (604) 983-8056

e-mail: ir@cabo.ca

CONTACT: John A. Versfelt, Chairman, President and CEO
web site: www.cabo.ca

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, 2009.

4th QUARTER & ANNUAL HIGHLIGHTS

+-------------------------------------------------------------------+
| (CDN $000s, except | 3 months | 3 months | | |
| earnings per share) | ending | ending | | |
| | June 30-09 | June | FY 2009 | FY2008 |
| | | 30-08 | | |
|------------------------+------------+----------+---------+--------|
| Revenue | 6,197 | 14,634 | 41,162 | 58,645 |
|------------------------+------------+----------+---------+--------|
| Net Earnings (Loss) | | | | |
| Before Interest, Tax, | (62) | 701 | 3,981 | 6,757 |
| Amortization, | | | | |
| Stock-based | | | | |
| Compensation and Other | | | | |
| Items (EBITDA) | | | | |
|------------------------+------------+----------+---------+--------|
| Net Earnings (Loss) | (1,028) | (115) | 408 | 3,951 |
| Before Taxes | | | | |
|------------------------+------------+----------+---------+--------|
| Net Earnings (Loss) | (1,192) | 581 | (847) | 3,203 |
| After Taxes | | | | |
|------------------------+------------+----------+---------+--------|
| Earnings (Loss) per | | | | |
| Share ($) Basic Before | | | | |
| Interest, Tax, | 0.00 | 0.02 | 0.08 | 0.15 |
| Amortization, | | | | |
| Stock-based | | | | |
| Compensation and Other | | | | |
| Items (EBITDA) | | | | |
|------------------------+------------+----------+---------+--------|
| Earnings (Loss) per | (0.02) | 0.01 | (0.02) | 0.07 |
| Share ($) Basic | | | | |
|------------------------+------------+----------+---------+--------|
| Cash from operations* | (339) | 814 | 2,060 | 5,149 |
|------------------------+------------+----------+---------+--------|
| Gross Margin % | 29.6% | 20.0% | 26.7% | 23.4% |
|------------------------+------------+----------+---------+--------|
| Working Capital | 4,588 | 7,239 | 4,588 | 7,239 |
+-------------------------------------------------------------------+

*before changes in non-cash working capital items

The Company reports:

Section Revenue of $6.20 million for the 4th quarter of 2009 compared to
4th quarter revenue of $14.63 million in fiscal 2008.

Section Net 4th quarter 2009 loss before interest, tax, amortization,
stock-based compensation and other items of $61,635 and a net loss of
$1.19 million after interest, tax, amortization, stock-based compensation
and other items resulting in a loss of $0.00 per share and a loss of
$0.02 per share, respectively. This compares with the 4th quarter 2008
earnings before interest, tax, amortization, and stock-based compensation
of $701,078 and net earnings of $581,487 after interest, tax,
amortization, and stock-based compensation resulting in earnings of $0.02
per share and $0.01 per share respectively.

Section Net before tax earnings for fiscal 2009 of $407,905 compared to a
net before tax earnings for fiscal 2008 of $3.95 million.

Section Net after tax loss for the fiscal year 2009 of $846,909 compared
to net after tax earnings for fiscal 2008 of $3.20 million.

Section Gross margin percentage for the 4th quarter fiscal 2009 was 29.6%,
compared with a gross margin of 20.0% in the 4th quarter of fiscal 2008
and 26.7% in fiscal 2009 compared to 23.4% in fiscal 2008.

Section Cash from operations, before changes in non-cash working capital
items, was a decrease of $339,131 for the 4th quarter 2009 and $2.06
million for fiscal 2009, compared to 4th quarter 2008 cash from
operations of $814,615 and $5.15 million for the fiscal year 2008.

Section A current asset balance of $16.63 million and working capital of
$4.6 million.

Section Total assets of $33.19 million and total liabilities of $14.10
million.

"Consistent with our third quarter fiscal 2009, Cabo experienced a
continued decrease in rig utilization during the fourth quarter of fiscal
2009," stated John A. Versfelt, Cabo Drilling's President and CEO. "Due
to the uncertainty in the economy, clients delayed their exploration
drilling programs. There was significant contraction in the Canadian and
United States market, with a 58% reduction in revenues in the fourth
quarter of fiscal 2009. Fortunately, this was offset somewhat by a 56%
revenue growth in our international divisions."

"We recorded our lowest quarterly revenue, in the fourth quarter of
fiscal 2009," commented Mr. Versfelt. "We believe this is the bottom of
the curve, as we have seen improvements in more signed contracts into the
first and second quarters of fiscal 2010. In addition we have received
larger numbers of bid requests from mining and exploration companies who
have increased their exploration budgets, as a result of new financings."

"Cabo had a gross margin performance of 29.6% for the 4th quarter fiscal
2009 (20.0% 4th quarter fiscal 2008), our highest gross margin
performance to date, and 26.7% for the fiscal year 2009 (23.4% for
2008)," Mr. Versfelt stated. "We have recorded improved gross margins
since the beginning of 2009 and expect this trend to continue, due to
operational efficiencies and an upgraded and modernized drill fleet.
Going into 2010 we will remained focus on cost saving measures,
continuing reduced support costs, improved performance for each drill and
greater utilization of the drills, which will lead to improved
profitability."

"During fiscal 2009, the Company recorded an allowance of $700,000 to
reduce inventory to net realizable value," commented Mr. Versfelt. This
together with recorded stock based compensation expense of $120,118 in
fiscal 2009 negatively affected net income by $820,118. Without recording
these accounting adjustments Cabo would have had a net loss after taxes
of only $26,791. It is important to note that Cabo can increase the value
of inventory to net realized value in the future and recapture the
$700,000 allowance."

"As markets improved Cabo received more bid requests, and gold is leading
the way in Canada, as well as Mexico and Central America. Copper and iron
ore projects are also requesting bids for drilling services," stated Mr.
Versfelt. "Cabo was able to take advantage of opportunities to acquire
six newer drills at significantly reduced prices on special terms, which
has enabled the Company to improve its fleet during tough times at a
greatly reduced price, at the same time, allowing it to put these drills
into production with improved margins. Consequently, Cabo Drilling is
experiencing and projecting growth in drill utilization for the balance
of fiscal 2010."

Fourth quarter ended June 30, 2009

Revenue for the three months ending June 30, 2009 decreased to $6.20
million, compared to $14.63 million in the comparable period in fiscal
2008 and compared to $6.52 million in the third quarter of fiscal 2009.
Revenues from the international divisions represented 65% of the revenues
for fourth quarter of fiscal 2009, as compared to 27% during the fourth
quarter of fiscal 2008.

Net loss for the fourth quarter of fiscal 2009 was $1.19 million compared
to net earnings of $581,487 in the fourth quarter of fiscal 2008 and
fiscal 2008 and a net loss of $765,330 in the third quarter of fiscal
2009. Earnings primarily decreased during the quarter due to the $700,000
allowance for inventory and the $120,118 stock based compensation.

Year ended June 30, 2009

Revenue for the year ending June 30, 2009 decreased $17.48 million or 30%
to $41.16 million, compared to $58.64 million in fiscal 2008. The primary
reason for the decrease is due to the contraction of the drilling market,
as a result of the economic downturn. The revenues from the Canadian and
United States divisions decreased by 50%, while the other divisions
increased by 56%. Panama provided most of the growth during this period
as drill utilization increased 100% to an average of six drills per
month. Revenues from Spain, Mexico and Liberia decreased from the
previous years as several projects were shut down. During the first year
of operation, Albania recorded $912,944 in revenues before the economic
downturn. All the Canadian divisions were negatively affected by the
contracted market during fiscal 2009. The expansion into the
international market helped Cabo Drilling to weather the downturn in the
global markets. Management expects international operations to stabilize
between 30-40% throughout fiscal 2010 as the market in Canada also
improves.

Gross margins for the year ended June 30, 2009 were 26.7% compared to
23.4% during the fiscal year ending June 30, 2008. The increased gross
margin is a direct result of cost reduction measures implemented during
fiscal 2009. Management expects gross margins to increase to between
28-30% range during fiscal 2010 due to improved cost controls, and
upgrades and modernization of the drill fleet.

EBITDA (earnings before interest, tax, amortization, stock-based
compensation and other items) for fiscal 2009 decreased $2.78 million to
$3.98 million ($0.08 per share basic dilution) as compared to $6.76
million ($0.15 per share basic dilution) in fiscal 2008.

Net loss for fiscal 2009 was $846,909 compared to net earnings of $3.20
million in fiscal 2008. Earnings decreased during fiscal 2009 due to
lower revenues, increased amortization and increased income taxes.

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

About Cabo Drilling Corp. (TSX-V: CBE)

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; Montreal, 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. For
general investor relation inquiries you may also contact Renmark
Financial Communications Inc. Barbara Komorowski:
bkomorowski@renmarkfinancial.com or Dan Symons:
dsymons@renmarkfinancial.com 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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