U.S. Trading Ex. #12g3-2(b) No.82-1401, Listed in S&P's

CDNX SYMBOL: CEV

MARCH 9, 2000

Cabo Mining Acquisition Update

VANCOUVER, BRITISH COLUMBIA--On February 29, 2000 Cabo Mining
filed its submission to the Canadian Venture Exchange with respect
to its acquisition of Digital Network Services, Inc. (DNS). The
company advanced funds from unallocated working capital to DNS to
carry out DNS's undertaking to Consultoria & Gestion de
Telecommunicacions S.A. (C & G Telecom) of Peru. To date, DNS has
paid C & G Telecom the $300,000 U.S. that was due on February 28,
2000. DNS is also acquiring the satellite earth station and
switching equipment, as well as reserving the satellite space
segment for the satellite long distance system that is in the
process of being installed in Lima and five additional Peruvian
cities.

DNS and C & G Telecom are on schedule with respect to the joint
venture agreement announced February 18, 2000. The installation
of the redundant satellite long distance system is proceeding as
planned. The offices and operating sites in Peru have been
secured, and the technical and administration staffing is
underway. The funding required to meet the scheduled capital
requirements for Peru has been received by the company.

Cabo Mining has retained the services of one of the major legal
firms in Peru to carry out the legal due diligence of C & G
Telecom in Peru and to act as legal counsel on an on-going basis.
In addition, the company is proceeding towards a standardization
of accounting and administrative systems between its head office,
DNS and the Peruvian offices, as well as working with its auditors
to select auditors in both the U.S. and Peru.

The Peruvian project involves the establishment and operation by
DNS of satellite earth station equipment and the infrastructure in
six Peruvian cities with the purpose of carrying Peruvian domestic
and international telecommunications traffic, as well as acting as
a local service provider. C & G Telecom provides the joint
venture with two national licenses from the Peruvian government to
operate legally in Peru. These licenses are in good standing for
twenty years.

DNS has also exercised its option pursuant to an agreement with
Ronam International S.A. (Ronam) of Sao Paulo, Brazil, whereby it
has increased its interest in the Ronam long distance satellite
telecommunication switching equipment located in Sao Paulo to
100%. DNS held a 50% interest in the equipment at the time that
the company agreed to acquire DNS. The final payment was $145,000
U.S. The Brazilian project will carry two way traffic between
Brazil and the world through a programmable tandem switch located
in New York, NY. Ronam provides local Brazilian operations and
marketing services, and DNS owns the equipment, provides overall
management and marketing services in the U.S.

In Cobalt, Ontario, the next phase of exploration work is
underway. Grid line cutting has been initiated for a UTEM and
magnetometer geophysics program that is scheduled to begin the
week of March 13, 2000.

Cabo Mining expects to issue progress reports with respect to the
Peru, Brazil and Cobalt, Ontario projects within the next thirty
days. Furthermore, the notice filing with respect to the
$3,000,000 private placement has been made with the Exchange and
the company plans to file the final private placement documents
with the Exchange prior to March 31, 2000.

ON BEHALF OF THE BOARD,

John A. Versfelt, President & CEO