CABO TO DRILL ADDITIONAL 14,500 METERS IN ALBANIA FOR BALKANRESOURCES INC & CANCEL STOCK OPTIONS

For         Immediate         Release:          December          12,
2008
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 TO DRILL ADDITIONAL 14,500 METERS IN ALBANIA FOR
BALKAN RESOURCES INC & CANCEL STOCK OPTIONS
 
North Vancouver, BC - Cabo  Drilling Corp.'s (TSX-V: CBE) ("Cabo"  or
the "Company")  majority  owned  Balkan States  Drilling  SH.P.K.  of
Tirana, Albania has been awarded two additional contracts from Balkan
Resources Inc. The  contracts call  for the Company  to drill  13,000
meters on Balkan Resources Perlati Project and 1,500 meters on  their
Librazhd Project, in Albania.
 
The Perlati  project is  located  in the  Merdite District,  a  known
copper district,  southeast  of  the city  of  Rrëshen,  about  fifty
kilometres north of Tirana, the  capital of Albania, in the  northern
part of the  country.   The objectives  of the drill  program are  to
delineate  the  known  deposit  to  a  NI  43-101  compliant  mineral
resource, expand  the  existing  mineralized zone  and  test  further
exploration targets.  Cabo has mobilized  a BBS-56 drill to the  site
and drilling has commenced.
 
The Librazhd Project  is located  in the Librazhd  District near  the
town of Dardhe in central Albania.  The initial diamond drill program
consists of  three  exploration  holes.  The  targeted  area  has  no
historic diamond drill information, but has an historic resource that
was based on excavations  in the area.   Preparation for the  diamond
drilling program has included  the rehabilitation of  9.6 km of  road
from the village of Upper Dardhe to  the drill sites, as well as  the
construction of  a water  reservoir near  the drill  sites.  Cabo  is
drilling that site with a BBS-37drill.
 
Balkan States Drilling SH.P.K. is  a joint venture company 70%  owned
by Cabo Drilling Corp. of North  Vancouver, BC, Canada and 30%  owned
by SHSHMN DOKO of Elbasan,  Albania.  Balkan States Drilling  SH.P.K.
offers drilling services in Albania and the rest of the Balkan States
Region of Eastern Europe.
 
About Balkan Resources Inc.
Balkan is a Canadian junior  mining and exploration company  focussed
primarily on nickel and copper opportunities in Albania. The  company
has an operations office in  Tirana, Albania. Balkan is currently  in
the process of seeking TSX  Venture listing. Claude Schimper,  C.O.O.
of  Balkan   Resources   Inc.   said  that   "The   creation   of   a
Canadian-Albanian joint  venture drilling  company represents  a  new
phase in mineral exploration in Albania enabling greater  exploration
opportunities in Albania".
 
Cancellation of Stock Options
The Company is cancelling its outstanding stock options with  respect
to 2,477,500  shares.  Following  the cancellation  the Company  will
have no stock options issued under its rolling 10% stock option plan.
 It has 47,767,013 issued and outstanding common shares.  Any  future
options to  directors, officers,  employees and  consultants will  be
granted, subject  to TSX  Venture Exchange  acceptance, on  terms  in
accordance with the  Company's Stock  Option Plan  and with  Exchange
policy.
 
.2
 
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; Montréal,  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;  Cabo Drilling  Spain
S.L. of Sevilla, Spain; and Balkan States Drilling SH.P.K. of Tirana,
Albania.  The  Company's  common  shares trade  on  the  TSX  Venture
Exchange under the symbol:  CBE and on  the Frankfurt Exchange  under
the symbol: DHL.
 
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 Investor Relations, Sheri  Barton, at 403-217-5830 or  Mr.
John A.  Versfelt,  Chairman,  President  & CEO  of  the  Company  at
604-984-8894.
                          *    *    *    *
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 50(TM) company in
2008. TSX Venture 50 is a trade-mark of TSX Inc. and is used under
license.
 
This announcement was originally distributed by Hugin. The issuer is 
solely responsible for the content of this announcement.