Cabo Signs Lease Agreement With London & Regional (Panama) S.A.

NORTH VANCOUVER, BRITISH COLUMBIA–(EMWNews – Aug. 21, 2008) – Cabo Drilling (Panama) Corp., a wholly owned subsidiary, of Cabo Drilling Corp.’s (TSX VENTURE:CBE) (“Cabo” or the “Company”) has entered into a lease agreement with London & Regional (Panama) S.A., Managers of the Panama Pacifico project in the Republic of Panama. The lease will provide immediate premises for Cabo’s Panama division, in an existing structure and new premises, upon completion of its offices in the new International Business Park. Ground breaking for the business park is planned for November 2008.

The 2,750 hectare Panama Pacifico project is strategically located directly across from Panama City on the old US Howard Air Force Base and overlooks both the Panama Canal and the Pacific Ocean. The project Master Plan calls for redevelopment, over the next 40 years, of what was once home to 10,000 military personnel, into an entire new city district within a tropical setting of lush forest and hills. Panama Pacifico is targeted to become “…the newest city in Central America. A place you will want to work, live, visit, vacation and enjoy!”

Cabo is pleased to find its place alongside neighbors like MEC Repairs, Dell Panama. The Red Cross, Caterpillar, Singapore Airlines and 3M who are also residents of the new global business hub within the Panama Pacifico Master Plan. Along with the expansion for the new city being built by London & Regional, there are also the advantages of an airport within walking distance, duty free zones, gated community, tax, immigration and labor incentives created for the Panama Pacifico project.

Cabo is building an increasing presence in Panama with a larger than 50% growth rate since January of this year. It enjoys the benefits of being a good corporate citizen in the Republic of Panama and is seeing positive results from offering better than average employment opportunities in Panama. The Company is beginning to see the benefits of training a local workforce.

“These are exciting times for our Company” comments Herb Butler, Operations Manager for Cabo in Panama, “Not only does this solidify our position in Panama but it gives us great access to the rest of Latin America”.

About Cabo Drilling Corp. (TSX VENTURE: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, Sonora, Mexico; Cabo Drilling (Panama) Corp. of Panama, Republic of Panama; and Cabo Drilling Spain S.L. of Sevilla, Spain. 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 website (http://www.cabo.ca) and SEDAR (www.sedar.com) or by contacting Investor Relations Mr. Garett Greene or Mr. John A. Versfelt, Chairman, President & CEO of the Company at 604-984-8894.

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.

Cabo Drilling Corp. was recognized as a TSX Venture 50^TM company in 2008. TSX Venture 50 is a trade-mark of TSX Inc. and is used under license.

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