Butte Energy Announces Update to Previously Announced Transaction

BUTTE ENERGY INC.

SUITE 3123 – 595 BURRARD STREET

VANCOUVER, BC V7X 1J1

TEL: 604-609-6110

BUTTE ENERGY ANNOUNCES UPDATE TO PREVIOUSLY ANNOUNCED TRANSACTION

March 26, 2021 TSXV – BEN.H

Vancouver, British Columbia – Butte Energy Inc. (TSXV – BEN.H) (the “Company”) announces that

it has learned of circumstances which lead it to believe that Genesis Group Limited (“Genesis) has

breached its agreement with the Company (announced February 12, 2021). The Company has not yet

formally communicated its position in this regard, and is evaluating its legal options. In the meantime, the

Company has received a letter from Genesis which purports to confirm the Company’s termination of the

agreement with Genesis. The Company will provide further updates as developments occur.

In the interim, funds received from subscribers to the subscription receipt financing announced on

February 12, 2021 and February 19, 2021 will be returned to the subscribers as soon as possible.

On behalf of BUTTE ENERGY INC.

“Geir Liland”

Chief Executive Officer

For further information please contact:

Joanna Vastardis

CFO & Corporate Secretary

Tel: 604.609.6125

Except for the statements of historical fact, this news release contains “forward- looking informatio n” within the

meaning of the applicable securities legislation that is based on expectations, estimates and projections as at the

date of this news release. “Forward-looking information” in this news release includes statements about the breach

of the letter agreement announced February 12, 2021 and the Company’s further updates thereon.

Factors that could cause actual results to differ materially from those described in such forward- looking

information include, but are not limited to, risks related to ongoing discovery and litigation of the letter agreement

and the Company’s position thereon.

The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of

the Company based on information currently avail able to the Company. Although the Company believes that the

assumptions inherent in the forward- looking information are reasonable, forward- looking information is not a

guarantee of future performance and accordingly undue reliance should not be put on suc h information due to the

inherent uncertainty therein.

Any forward-looking information speaks only as of the date on which it is made and, except as may be required by

applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking

information, whether as a result of new information, future events or results or otherwise.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term a s defined in the policies

of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.