Butte Energy Announces Update to Previously Announced Transaction

TSXV – BEN.H

VANCOUVER, BC, March 26, 2021 /CNW/ - 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

Except for the statements of historical fact, this news release contains "forward-looking information" 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 available 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 such 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 as defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Butte Energy Inc.

Joanna Vastardis, CFO & Corporate Secretary, Tel: [phone]