Cabo to drill 30,000 meters on Labrador Iron Mines’s Schefferville Project and grant Employee Stock Options

    NORTH VANCOUVER, Aug. 18 /EMWNews/ - Cabo Drilling Corp.'s

(TSX-V: CBE) ("Cabo" or the "Company") Montreal division, Forage Cabo Inc.,

has been awarded a contract by Labrador Iron Mines Limited, of Toronto,

Ontario, to complete 30,000 meters of reverse circulation drilling at

Labrador Iron Mines' Schefferville Project located near Schefferville,

Quebec.



    The purpose of Labrador Iron Mines' reverse circulation drill program

is to provide data for a NI 43-101 compliant resource estimate on the

various Schefferville deposits, including a reserve estimate on the

Project's Phase One Properties, and to assist with both short term mine

planning and with longer term operational planning (see Labrador Iron

Mines' news release dated July 2, 2008).



    Cabo's work on the project commenced in late July 2008. The Company is

utilizing two Acker reverse circulation drills on the project.

    About Labrador Iron Mines Ltd. (TSX: LIR)



    Labrador Iron Mines Holdings Limited was established with the primary

business objective of exploring for and developing direct shipping iron ore

deposits in the Labrador Trough area of Newfoundland and Labrador. The

Company operates its Schefferville Project through its wholly-owned

subsidiary, Labrador Iron Mines Limited. Labrador Iron Mines Limited plans,

subject to receipt of permits, to commence shipment of iron ore by

mid-2009.



    Employee Stock Options



    Cabo also announces that it has, subject to regulatory acceptance,

granted 587,000 incentive stock options to employees, under terms of its

Stock Option Plan, granting the right to purchase up to 137,981 common

shares of the Company at $0.65 per share, up to 311,006 commons shares at

$0.75 per share, and up to 138,013 common shares at $0.85 per share.



    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, 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"



    John A. Versfelt Chairman, President and CEO



    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.



    Cabo Drilling Corp. was recognized as a TSX Venture 50TM company in

2008. TSX Venture 50 is a trade-mark of TSX Inc. and is used under license.