NORTH VANCOUVER, June 20 /PRNewswire-FirstCall/ - Cabo Mining Enterprises
Corp. ("Cabo" or the "Company") (TSX-V: CBE) today announces its subsidiary
Heath & Sherwood Drilling (1986) Inc. ("Heath & Sherwood") has entered into a
contract with International Molybdenum Ltd., a subsidiary of Galahad Gold Plc.
to perform both underground and surface diamond core drilling on their
Malmberg Project located on the east coast of Greenland, near latitude
72 degrees North. This deposit has been identified through previous
exploration activities as a world class molybdenum deposit.
    As part of the proposed Malmberg work program, International Molybdenum
Ltd. plans to drill 25 holes to upgrade the resource estimate at Malmberg to
Measured/Indicated status and to confirm the extent of high-grade zones in the
deposit and undertake further geotechnical work. Heath & Sherwood is providing
the drilling equipment and personnel, which include 1 surface and 2
underground drills, and Knight Piesold Ltd., an engineering company, is
providing the instructions for the actual geotechnical work. This geotechnical
work includes, but is not limited to, core orientation, ground permeability,
rock stress testing, and rock permeability testing using an in-hole packer
assembly.
    The logistics of this project are quite challenging. The equipment must
be taken to Iceland via ship, flown to an airstrip in Greenland via aircraft,
then moved again to the jobsite via helicopter for assembly. Provisions have
to be in place for permafrost drilling should it be encountered. A camp is
on-site to accommodate the drill crews, mining contractor, engineering company
and International Molybdenum Ltd. personnel. On-site operations began in
mid-April and are going well.
    Heath & Sherwood was chosen for the project in part due to their years of
overseas experience, moving drilling equipment and personnel by sea and via
fixed-wing aircraft or helicopter in the high Arctic.

    Cabo Mining Enterprises Corp. is a drilling services and mineral
exploration company headquartered in North Vancouver, British Columbia,
Canada. The Company provides drilling services through its subsidiaries Heath
& Sherwood Drilling (1986) Inc., of Kirkland Lake, Ontario; Petro Drilling
Company Limited of Springdale, Newfoundland; Stratacan Inc. of St. John's,
Newfoundland; Forages Cabo Inc. of Montreal, Quebec; and Advanced Drilling
Ltd. of Surrey, British Columbia. Cabo's mineral exploration properties are
located near Cobalt, Kenora, and Sudbury, Ontario, Canada. The Company's
common shares trade on the TSX Venture Exchange under the symbol: CBE.

    ON BEHALF OF THE BOARD

    (signed "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 (http://www.sedar.com) or by contacting Investor
Relations Ms. Sheri Barton at 403-217-5830 or Mr. John A. Versfelt, Chairman,
President & CEO of the Company.

    The Exchange has not in any way passed upon the merits of this news
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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