Cabo Mining Executes Letter of Engagement with Global Securities Corp.

Business Editors

VANCOUVER, British Columbia--(BUSINESS WIRE)--Jan. 18, 2000

Cabo Mining Corp.(CDNX:CEV)--Cabo Mining Corp. has executed a letter of engagement with Global Securities Corp. (Global).

Global, subject to completion of satisfactory due diligence, has agreed to act as Sponsor with respect to Cabo's acquisition of Digital Network Services Inc. An agreement to Sponsor should not be construed as any assurance with respect to the merits of the acquisition or the likelihood of completion. Earl M. Cohen, C.P.A., P.A. of Boca Raton, Florida, has been retained as well to carry out the audit of DNS's financial statements and to provide an opinion as to the net tangible assets of DNS.

DNS assists independent international and U.S.A. interexchange carriers (IXC's), major international corporations, select affinity groups and foreign countries (PTT'S) in identifying cost efficient alternative telecommunication needs. Products and services provided by DNS include:

-- International private lines;

-- PTT and IXC refile traffic;

-- Direct satellite services to foreign countries;

-- Custom designed U.S.A. switched and international direct dial telephone services for U.S.A. corporations and select affinity groups;

-- Custom network design consulting services, including network economics and revenue enhancement; and,

-- Custom marketing support.

DNS provides unique, state of the art solutions to maintain effective international networks, with significant cost savings. Through affiliates and DNS's owned and managed networks, DNS can provide access to:

-- International fibre connections to Central and South America, Asia and Europe with band widths from 64Kbps to Digital Service Level Three (DS-3);

-- International private line termination of voice and data worldwide;

-- Private satellite interface to and from the U.S.A.;

-- Internet connectivity via satellite, international cable and domestic digital connections from DS-0 to Optical Carrier Three (OC-3) and higher;

-- Origination and termination in the U.S.A. for 1+ and 800 telephone; and,

-- Access to private switching networks in the U.S.A., Brazil, Peru, Panama, Australia, New Zealand and Japan.

Projects that are in progress include fibre connections between Sao Paulo and New York; Sao Paulo and Rio de Janeiro, Brazil; New York and Lima, Peru; private voice and data networks between Miami and Haiti, Trinidad, Jamaica, Mexico and all Central American countries; and, private telex between the U.S.A. and Panama.

DNS has now formalized a strategic business relationship and executed a letter of intent with Consultoria & Gestion de Telecommunicaciones S.A. (C & G Telecom) of Peru to form a telecommunications joint venture for providing Peruvians with direct access to the world wide voice data network. C & G Telecom is the first fully licensed alternative carrier in Peru to acquire a nationwide license to provide:

-- fixed telephone service (direct connect any end user by private connection to C & G Telecom facilities for local, national and international voice or data service);

-- pay phone service on C & G Telecom's private network or on the public switched network; and,

-- internet services.

As the joint venture partner with C & G Telecom, DNS will provide the VOIP equipment at an estimated cost of $500,000 U.S. and will be responsible for U.S.A. operations. DNS's parti cipation will include:

-- Exclusive network management for all voice and data services which originate or terminate in the country of Peru or from outside Peru to Peru on the C & G Telecom Network;

-- Operation management for the purchase of telecommunication equipment required to operate the licensed network;

-- Exclusive sales and marketing of all voice and data services originated outside of Peru, and,

-- Financial management of all voice and data services utilizing the C & G Telecom network, including billing programs required for telecommunication services, collection agreements for services originated in the country of Peru, and supervision of other licensed agreements for the integration of voice and data networks.

C & G Telecom will provide the joint venture with:

-- Alternative satellite connectivity to the VOIP on the Peru network, capable of originating and terminating a minimum of 3 million minutes per month;

-- A minimum of five in-country, fully functional earth station facilities capable of backing up the VOIP services;

-- In-country local connections (local lines and IP connections) for the VOIP and earth station facilities;

-- Switching facilities required by the License Agreements to interface with the local PTT's; and,

-- Infrastructure in Peru required to manage the telecommunication projects in Peru.

C & G Telecom and DNS anticipate that the first operational VOIP switching site, to be located in Lima, will be operational by March, 2000 and that the VOIP service in the balance of Peru should be operational by June, 2000.

Subject to regulatory approval and acceptance of Cabo's acquisition of DNS by the Canadian Venture Exchange, Cabo's directors have approved the granting of stock options for 179,000 shares to certain directors and employees of DNS, exercisable at $0.25 per share to May 6, 2004.

Cabo expects to make a further announcement shortly with respect to its Cobalt, Ontario mineral exploration project upon receipt of the diamond drilling results.

ON BEHALF OF THE BOARD,

John A. Versfelt, President & CEO 

The Canadian Venture Exchange has neither approved nor disapproved of the contents contained herein.