BEN

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. To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/July2011/15/c5802.html p bButte Energy Inc./bbr/ Victor Redekop, Chairmanbr/ (403) 541-5310 /p

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