Butte Energy announces closing of private placement financing

    




 TSXV: BEN   

 /NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S.  WIRE SERVICES/ 

 CALGARY, July 30, 2012 /CNW/ - Butte Energy Inc. ("Butte" or the  "Company") announces that further to its press releases dated May 16,  2012 and June 29, 2012, it has successfully completed its non-brokered  private placement for 9,436,908 common shares in the capital of the  Company ("Common Shares") at an issue price of $0.25 per share for  aggregate gross proceeds of $2,359,227 (the "Private Placement"). 

 The Common Shares issued pursuant to the Private Placement offering are  subject to a hold period under applicable securities laws until  December 1, 2012. 

 The net proceeds of this offering will be used in the Company's on-going  exploration and development activities in Central Alberta including the  Company's farm-out obligations and for working capital. 

 Mr. Victor Redekop, a director of the Company, owned, or exercised  control or direction over, directly or indirectly, an aggregate of  18,703,912 Common Shares representing 54.5% of the Common Shares  outstanding prior to the completion of the Private Placement.  As a  result of the Private Placement, Mr. Redekop beneficially owns, or  exercises control or direction over, directly or indirectly, an  aggregate of 25,703,912 Common Shares, representing approximately 58.8%  of the issued and outstanding Common Shares.  As a result of his  ownership, the Private Placement constitutes a "related party  transaction" pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101").  MI 61-101 provides a number of circumstances in which a  transaction between an issuer and a related party may be subject to  valuation and minority approval requirements.  An exemption from the  formal valuation requirements is available as the securities of the  Company are not listed or quoted on any of the markets specified in  subsection 5.5(b) of MI 61-101 and an exemption from minority approval  requirements is available as the fair market value of the related party  transaction is less than $2.5 million. Consequently, the Private  Placement is not subject to the valuation and minority approval  requirements of MI 61-101.  The board of directors of the Company  approved the Private Placement.  The Company did not file a material  change report more than 21 days before the expected closing of the  Private Placement as details of the Private Placement were not settled  until shortly before the closing of the Private Placement. 

  

 Cautionary statements 

 This news release contains "forward-looking statements" within the  meaning of applicable securities laws relating to the use of proceeds  from the Private Placement.  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. Except as  required by law, the Company expressly disclaims any intention or  obligation to update or revise any forward-looking statements whether  as a result of new information, future events or otherwise. 

 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.  

 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. 

Butte Energy Inc.


CONTACT:  Butte Energy Inc.Victor Redekop, ChairmanTel: [phone] 


    

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