Cabo Drilling Corp. and Naicatchewenin Development Corporation ("NDC") announced the signing of a Joint Venture Agreement whereby the parties will work together to seek out drilling service contracts with exploration and mining companies throughout the Province of Ontario. Under the terms of the Joint Venture Agreement, NDC will maintain an exclusive business relationship with Cabo Drilling for the purpose of tendering drilling service contracts in Ontario and will use its relationships with First Nations bands, and businesses in the exploration and mining sectors operating within Ontario aboriginal lands, to promote the services of the NDC and Cabo Drilling Joint Venture (the "Joint Venture"). NDC, together with other Ontario First Nations' members that they have relationships with, will assist in the performance of drilling services contracts that have been entered into by the Joint Venture for mineral exploration drilling, development drilling and mine drilling. NDC and Cabo will carry out their best efforts to provide training and employment opportunities for the Naicatchewenin and other Ontario First Nations' members. The two companies have agreed to work together for the mutual benefit of all partners, creating new economic opportunities for the membership of the Naicatchewenin First Nation, the development and growth of NDC and NDC owned companies, and Cabo Drilling.

Cabo Drilling Corp. reported earnings results for the second quarter and six months ended December 31, 2012. For the quarter, the company reported revenue of CAD 9,161,000 against CAD 14,363,000 for the same period a year ago. The primary reason for the decrease is due to reduced demand for drilling in the last two months of calendar 2012. Latin America division revenues decreased by 11% with lower drill utilization in Colombia as compared to the second quarter of fiscal 2012, decreasing revenues to CAD 3.76 million, as compared to CAD 4.23 million in the comparable period in fiscal 2012. EBITDA was CAD 624,000 or CAD 0.01 per basic and diluted share against CAD 1,476,000 or CAD 0.02 per basic and diluted share for the same period a year ago. Net loss before taxes was CAD 372,000 against net earnings of CAD 637,000 for the same period a year ago. Net loss after taxes was CAD 435,000 or loss of CAD 0.01 per basic and diluted share against net earnings after tax of CAD 440,000 or CAD 0.01 per basic and diluted share for the same period a year ago. Cash from operations was CAD 331,000 against CAD 1,110,000 for the same period a year ago. For the six months, the company reported revenue of CAD 23,003,000 against CAD 31,293,000 for the same period a year ago. EBITDA was CAD 2,453,000 or CAD 0.03 per basic and diluted share against CAD 4,530,000 or CAD 0.06 per basic and diluted share for the same period a year ago. Net earnings before taxes were CAD 397,000 against CAD 2,899,000 for the same period a year ago. Net earnings after taxes were CAD 125,000 or CAD 0.00 per basic and diluted share against CAD 1,960,000 or CAD 0.06 per basic and diluted share for the same period a year ago. Cash from operations was CAD 1,685,000 against CAD 2,581,000 for the same period a year ago. Management expects the second half of fiscal 2013 to be lower than the second half of fiscal 2012, but higher than the first half of fiscal 2013. Management expects the international revenues to continue to represent a larger portion of overall revenues in the remaining six months of fiscal 2013. The company management expects average drill utilization in fiscal 2013 to remain near the 40%-45% level, with gross margins at 25%-26%, prior to depreciation expenses included in direct costs. The company is budgeting annual gross revenues of approximately CAD 46 million - CAD 48 million for fiscal 2013.

Cabo Drilling Corp. announced that Cabo Drilling (Colombia) Corp. has renewed its contract with Red Eagle Mining Corporation for an additional 17,000 meters of drilling on Red Eagle's Santa Rosa project in the District of Antioquia. Under the terms of the renewed contract Cabo has agreed to supply two additional man-portable drill rigs; the additional rigs will join two skid mounted rigs that are already in place on the property. Both parties have agreed to proceed with the next phase of the drilling program under the terms of the previous contract, signed June 2011. Three rigs are currently drilling on the property and the fourth rig, a CABO-1000, recently arrived on site.