I was wrong - the drive is not mounting during boot.
dmesg log seems to show that it is mounting:
[10.801071] sda: sda1
[10.812751] sd 0:0:0:0: [sda] Attached SCSI disk
blkid recognises the drive at /dev/sda1:
/dev/sda1: LABEL="TranscendHDD" UUID="F89C-5280" TYPE="exfat"
fstab entry:
UUID=F89C-5280 /mnt/usbdrive exfat uid=pi,gid=pi 0 0
And the drive mounts with 'mount -a':
/dev/sda1 488384000 17408 488366592 1% /mnt/usbdrive
But is won't mount during boot.
I am using a raspberry pi 2. I read that there was an issue with the boot process and it is recommended to add "rootwait=5" to end of /boot/cmdline.txt. I have tried this and also higher numbers but no success.
Others who have had this issue:
http://www.raspberrypi.org/forums/viewtopic.php?t=99491
https://github.com/raspberrypi/linux/issues/824
So as suggested by one of the posters, I have added 'mount -a' to /etc/init.d/rc.local
The drive mounts on boot now. But this is not standard and I dont know if there are any disadvantages.