Butte Energy Inc. Announces Completion of Asset Sale

BUTTE ENERGY INC.

BUTTE ENERGY INC. ANNOUNCES COMPLETION OF ASSET SALE

FOR IMMEDIATE RELEASE

CALGARY, ALBERTA – August 15, 2017 - Further to its August 11, 2017 press release, Butte Energy Inc.

(“Butte” or the “Company”) (TSXV: BEN.H) is pleased to announce that the sale of the Company’s Chigwell

properties to RKSmith Energy Corp. (the “Transaction”) has been completed. The Transaction constituted the

final disposition of all the Company’s remaining assets. Butte intends to use the proceeds from the Transaction

for the settlement of obligations and after the payment of its liabilities the Company anticipates that there will

be no residual for a distribution to shareholders.

For further information please contact:

Butte Energy Inc.

Victor Redekop, Chairman (403) 541-5310

This news release includes certain statements that may be deemed "forward-looking statements" within the

meaning of applicable Canadian securities legislation. Specifically, this news release includes, but is not

limited to, forward-looking statements with respect to distributions to shareholders and use of Transaction

proceeds. Generally, forward-looking statements can be identified by the forward-looking terminology such

as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "projects",

"intends", "anticipates", or "does not anticipate", or "believes", or "variations of such words and phrases or

state that certain actions, events or results "may", "can", "could", "would", "might", or "will" be taken",

"occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties

and other factors that may cause the actual results, level of activity, performance or achievements of the

Company to be materially different from those expressed or implied by such forward-looking statements,

including but not limited to: risks associated with general economic conditions, adverse industry events, loss

of markets, inability to obtain regulatory approvals, the liabilities of the Corporation, income tax and

regulatory matters. Although the Corporation has attempted to identify important factors that could cause

results to differ materially from those contained in forward-looking statements, there may be other factors

that cause results to be materially different from those anticipated, described, estimated, assessed or intended.

There can be no assurance that any forward-looking statements will prove accurate, as actual results and

future events could differ materially from those anticipated in such statements. Accordingly, readers should

not place undue reliance on forward-looking statements. The Corporation does not undertake to update any

forward-looking statements that are incorporated by reference herein, except in accordance with applicable

securities laws.

This press release is not an offer of the securities for sale in the United States. The securities have not been

registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United

States absent registration or an exemption from registration. This press release shall not constitute an offer

to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which

such offer, solicitation or sale would be unlawful.

Not for distribution to U.S. Newswire Services or for dissemination in the United States of America. Any

failure to comply with this restriction may constitute a violation of U.S. Securities laws.

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

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