Butte Energy Inc. Announces Debt Financing

CALGARY, July 15, 2011 /CNW/ -- 
TSXV ticker symbol: BEN


/Not for distribution to U.S. Newswire Services or for dissemination in
 the United States. Any failure to comply with this restriction may
 constitute a violation of U.S. Securities laws./


CALGARY, July 15, 2011 /CNW/ - Butte Energy Inc. (the "Corporation") (TSXV: BEN) is pleased to announce that it has borrowed $4,500,000
 from Mr. Victor Redekop, Chairman of the Corporation. The loan is
 unsecured, bears interest at prime plus 3% and is due and payable
 together with the accrued interest on July 31, 2013.  $2,700,000 of the
 proceeds from the financing will be used to retire in part amounts
 currently owed to Mr. Redekop and Sand Hills Energy Inc., a corporation
 controlled by Victor Redekop. The remainder will be used for working
 capital by the Corporation.


Information Regarding the Corporation


The Corporation is an emerging oil and gas company engaged in the
 exploration for and development and production of oil and natural gas
 reserves in Western Canada. The Corporation's common shares trade on
 the Exchange under the symbol "BEN".


Cautionary statements


This news release contains "forward-looking statements" within the
 meaning of applicable securities laws relating to the proposal to
 complete the Acquisition, including statements regarding the timing of
 the Acquisition and receipt of regulatory approvals. Readers are
 cautioned not to place undue reliance on forward-looking statements.
 Actual results and developments may differ materially from those
 contemplated by these statements depending on, among other things, the
 risks that regulatory approval will not be obtained in a timely manner
 or at all. The statements in this news release are made as of the date
 of this release. The Corporation undertakes no obligation to comment on
 analyses, expectations or statements made by third parties in respect
 of the Corporation, the Acquisition, the Assets or the Corporation or
 Sand Hills respective financial or operating results or (as
 applicable), their securities.


Neither the TSX Venture Exchange, Inc. nor its Regulation Service
 Provider (as that term is defined under the policies of the TSX Venture
 Exchange) has in any way passed upon the merits of the Proposed
 Acquisition and associated transactions and has neither approved nor
 disapproved of the contents of this press release.


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p bButte Energy Inc./bbr/ Victor Redekop, Chairmanbr/ [phone] /p 

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