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                     SECURITIES AND EXCHANGE COMMISSION
                        Washington, D.C.  20549

                                FORM 10-QSB

       QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
                     EXCHANGE COMMISSION ACT OF 1934 

                    For the period ended May 31, 1998

                  Commission File Number:    001-05970

                         SILVER BUTTE MINING COMPANY
            (Exact name of registrant as specified in its charter)

                  IDAHO                            82-0263301
 (State or other jurisdiction of            (I.R.S. Employer       
   Incorporation or organization)            Identification Number)


    2501 E. SHERMAN AVENUE, #215, COEUR D'ALENE, ID           83814
       (Address of Principal Executive Offices)             (Zip Code)

                             (208) 664-0880
          Registrant's telephone number, including area code


Check whether the issuer (1) filed all reports required to be filed by 
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the 
preceding 12 months (or for such shorter period that the registrant was 
required to file such reports), and (2) has been subject to such filing 
requirements for the past 90 days.

                 Yes    ( )            No (X)

The number of shares of Common Stock, $.05 par value, outstanding as of 
May 31, 1998, was 7,828,748. 

DOCUMENTS INCORPORATED BY REFERENCE:  Form 8-K dated April 10, 1998.

Transitional Small Business Disclosure Format (Check One):  Yes ( ) No (X)


















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<PAGE>

                         SILVER BUTTE MINING COMPANY
                         FORM 10-QSB QUARTERLY REPORT
                                 May 31, 1998


INDEX 



                                                                     Page
                                                                    Number     
Part I                   FINANCIAL INFORMATION

Item 1.  Condensed Financial Statements                              

         Condensed Balance Sheets, May 31, 1998,
            and August 31, 1997                                       3

         Condensed Income Statements for the three and nine
            month periods ended May 31, 1998, and 1997                4

         Condensed Statements of Cash Flows for the nine months 
            ended May 31, 1998, and 1997                              5

         Notes to Condensed Financial Statements                      6 


Item 2.  Management's Discussion and Analysis of
            Financial Condition and Results of Operations             7 -8

Part II                    OTHER INFORMATION

Item 6.  Exhibits and Reports on Form 8-K                             9

Signature Page                                                        10

























                                         2
<PAGE>
SILVER BUTTE MINING COMPANY
CONDENSED BALANCE SHEETS
May 31, 1998 and August 31, 1997

<TABLE>
                                                May 31,          August 31,
                                                 1998              1997
                                             ____________      ____________

<C>                                          <S>               <S>
ASSETS

CURRENT ASSETS
     Cash and cash equivalents               $     1,251       $    84,297
     Certificate of deposit for State lease        5,000             5,000
     Marketable securities                        71,383               -
     Accounts receivable                           1,091             1,092
     Prepaid expenses                              1,685               -
                                             ____________      ____________

         TOTAL CURRENT ASSETS                     80,410            90,389

PROPERTY, PLANT & EQUIPMENT
     Properties                                    3,000             3,000
     Equipment and machinery                      19,704            19,704
     Accumulated depreciation                    (19,704)          (19,704)
                                             ____________      ____________
                                                   3,000             3,000
                                             ____________      ____________

TOTAL ASSETS                                 $    83,410       $    93,389
                                             ============      ============

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES

   Accounts payable                          $     4,270       $     7,910
                                             ____________      ____________

         TOTAL CURRENT LIABILITIES                 4,270             7,910
                                             ____________      ____________
SHAREHOLDERS' EQUITY

     Common stock, $.05 par value
       authorized 10,000,000 shares,
       issued and outstanding,
       7,828,748 shares                          391,437           391,437
     Additional paid-in capital                  392,953           392,953
     Accumulated deficit                        (705,250)         (698,911)

                                             ____________      ____________

         TOTAL SHAREHOLDERS' EQUITY               79,140            85,479
                                             ____________      ____________

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $    83,410       $    93,389
                                             ============      ============
</TABLE>

The accompanying notes are an integral part of these financial statements.

                                      3
<PAGE>
SILVER BUTTE MINING COMPANY
CONDENSED INCOME STATEMENTS
For the Three and Nine Months Ended May 31, 1998 and 1997

<TABLE>
                             Three Months Ended         Nine Months Ended
                        __________________________   __________________________
                           May 31,      May 31,         May 31,       May 31,
                            1998         1997            1998          1997
                        ____________  ____________   ____________  ____________
<S>                     <C>           <C>            <C>           <C>
REVENUES
  Dividend income       $     1,331   $       -      $     1,882   $       -   
  Interest income                84         1,258          1,030         3,607
  Rock sales                    -             -              780         1,077
  Misc. other income            -             -              -             399
                        ____________  ____________   ____________  ____________

       Total Revenues         1,415         1,258          3,692         5,083
                        ____________  ____________   ____________  ____________


EXPENSES
  Wages and other
    compensation                640           425          5,350         1,935
  Professional 
    services                    288           517          2,692         2,339
  Rent & royalties              -             -              390           200
  Office expense                211            27            560           304
  Dues, taxes and
    licenses                     29            56            709           420
  Miscellaneous                  1            521            330           637
                        ____________  ____________   ____________  ____________

        Total Expenses        1,169         1,546         10,031         5,835
                        ____________  ____________   ____________  ____________

INCOME (LOSS) BEFORE             246         (288)        (6,339)         (752)
  INCOME TAXES

INCOME TAXES                    -             -              -             -  
                        ____________  ____________   ____________  ____________

NET INCOME (LOSS)       $        246  $      (288)   $    (6,339)  $      (752)
                        ============  ============   ============  ============

Income (Loss) per Share
  Of Common Stock 
  Outstanding           $   (0.0000)  $   (0.0000)   $   (0.0008)  $   (0.0001)
                        ============  ============   ============  ============

Weighted Average Number
  Of Common Shares
  Outstanding             7,828,748     7,828,748      7,828,748     7,828,748
                        ============  ============   ============  ============


</TABLE>

The accompanying notes are an integral part of these financial statements.

                                        4
<PAGE>
SILVER BUTTE MINING COMPANY
CONDENSED STATEMENTS OF CASH FLOWS
For the Nine Months Ended May 31, 1998 and 1997

<TABLE>

                                                  Nine Months Ended
                                             ______________________________
                                                May 31  ,         May 31,
                                                 1998              1997
                                             ____________      ____________


<C>                                          <S>               <S>

CASH FLOWS FROM OPERATING ACTIVITIES

  Net Loss                                   $    (6,339)      $      (752)
  Adjustments to reconcile net loss
    to net cash provided by operating
    activities:
      Increase (decrease) in payables             (3,640)            1,730
      Decrease (increase) prepaid expenses        (1,685)            2,240
      Decrease (increase) receivables                  1            (2,092) 
                                             ____________      ____________
           Net cash provided by (used in)
             operating activities                (11,663)            1,126
                                             ____________      ____________

CASH FLOWS FROM INVESTING ACTIVITIES

      Increase in marketable securities          (71,383)              -
                                             ____________      ____________
           Net cash used in investing
              activities                         (71,383)              -
                                             ____________      ____________

NET INCREASE (DECREASE) IN
   CASH AND CASH EQUIVALENTS                     (83,046)            1,126

Cash and Cash Equivalents at Beginning 
  of Period                                       89,297            86,090 
                                             ____________      ____________

Cash and Cash Equivalents at End of Period   $     6,251       $    87,216
                                             ============      ============

Interest expense paid                        $       -         $       -  
                                             ============      ============


Income taxes paid                            $       -         $       -  
                                             ============      ============





</TABLE>

The accompanying notes are an integral part of these financial statements.

                                        5
<PAGE>


SILVER BUTTE MINING COMPANY

NOTES TO CONDENSED FINANCIAL STATEMENTS


Note 1.  Presentation of Interim Information 

The accompanying unaudited condensed financial statements have been 
prepared by Silver Butte Mining Company's management. In management's 
opinion, these condensed financial statements include all normal 
adjustments considered necessary to present fairly the financial position 
as of May 31, 1998, and the results of operations for the three and nine 
months ended May 31, 1998 and 1997, and cash flows for the nine months 
ended May 31, 1998 and 1997.  Interim results are not necessarily 
indicative of results for a full year.  The Company's sales of rock are 
seasonal in nature.

The condensed financial statements and notes are presented as permitted 
by Form 10-QSB, and do not contain certain information that is included 
in the Company's annual financial statements.  



Note 2.  Marketable Securities 

The Company has invested in certain money market fund equity securities 
which it considers as available for sale according to Statement of 
Financial Accounting Standards (SFAS) 115.  Unrealized holdings gains 
and losses on such securities are not expected, but will be excluded 
from earnings and reported as a separate component of shareholders' 
equity, if gains or losses occur.  The cost of these marketable equity 
securities, when sold, will be determined by the specific identification 
method.

The fair value of these securities, in accordance with SFAS 107, is 
considered to be the same as their cost, based on quoted market prices.   


Note 3.  Commitments and Contingencies 

The Company sold a seven-acre parcel of land in the fiscal year ended 
August 31, 1996 that contained mine waste rock and mill tailings.  The 
Company believes there is a remote possibility that this property may 
require some cleanup, and an even more remote possibility that the 
Company may be required to participate in the cost of such a cleanup, 
which the Company estimates would be less than $10,000.













                                         6
<PAGE>
                         SILVER BUTTE MINING COMPANY 

                        Form 10-QSB QUARTERLY REPORT 

                               May 31, 1998 


Item 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION 
         AND RESULTS OF OPERATION 


The Company was a mining company engaged in exploration activities from 
its inception in 1965 through 1994.  In 1994, the Company abandoned all 
exploration activities, and is now seeking other business opportunities 
in mining or other industries.  The Company continues to hold and maintain 
the properties on which it performed its exploration efforts.  The 
Company's fiscal year ends on August 31.

OVERVIEW


The Company's management determined in 1994 that the Company did not 
have the financial resources to continue to explore for commercial ore 
deposits after many years of unsuccessful efforts.  The Company has 
performed some reclamation work on its mining properties since 1994, 
and is soliciting buyers for its remaining real estate and mining 
equipment.  The Company is seeking out other business opportunities.  
Management is unaware of any such opportunities at this time, and will 
disclose such opportunities when and if they should arise.


RESULTS OF OPERATIONS 


REVENUES.  The Company has had no meaningful sales activities in the last 
21 months.  The Company's interest income decreased by $1,174 to $84 for 
the third fiscal quarter ended May, 31, 1998, compared to the third 
quarter of fiscal 1997.  This was the result of the Company investing a 
significant portion  of its funds in  money market equity securities during 
the second  quarter of the fiscal year ended August 31, 1997.  The Company 
realized $1,331 of dividend income from its money market accounts during the 
third quarter of fiscal 1998, compared to no dividend income for the third 
quarter of fiscal 1997.  

The Company's interest income decreased from $3,607 to $1,030 during the 
three quarters ended May 31, 1998, compared to the three quarters ended 
May 31, 1997, for the reason discussed above.  The dividend income for 
the first three quarters of fiscal 1998, exceeded the dividend income 
for the first three quarters of fiscal 1997 by $1,882 as explained 
above.  The Company's rock sales decreased by $297 from the first 
three quarters of fiscal 1997, compared to the first three quarters of 
fiscal 1998.








                                         7
<PAGE>

                         SILVER BUTTE MINING COMPANY 

                        Form 10-QSB QUARTERLY REPORT 

                               May 31, 1998 


Item 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION 
         AND RESULTS OF OPERATION (Continued)


EXPENSES.  The Company's  expenses were slightly less ($377) in the third 
quarter of the fiscal year ended May 31, 1998, than in the third quarter 
of fiscal 1997. 

Wages and other compensation were significantly higher in the first nine 
months of fiscal 1998 when compared to the first nine months of fiscal 
1997 because the Company renewed its SEC reporting.  Other expenses for 
the nine months ended May 31, 1998, did not differ significantly from 
the nine months ended May 31, 1997. 


FINANCIAL CONDITION

LIQUIDITY.  Cash and cash equivalents decreased by $83,423 and marketable 
securities increased by $71,383 during the first nine months of the fiscal 
year 1998.  The marketable securities are money market funds that allow 
the Company immediate access to funds when the Company needs additional 
cash.  The Company  has prepaid $500 in production royalties as a 
requirement for the renewal of its lease with  the State of Idaho, and 
$879 of industrial insurance during the first nine months of the fiscal 
year ending August 31, 1998. 

CAPITAL REQUIREMENTS.  The Company has no plans that will require 
significant cash outlays  during the foreseeable future other than normal 
operating  costs. The Company will continue with it's efforts to sell or 
abandon a significant portion of its equipment and machinery. This will 
not have a material effect on the Company's financial condition 
because the machinery and equipment are fully depreciated, and the amount 
of cash that may be generated from such sales is  not expected to be 
significant.  



















                                         8
<PAGE>

                         SILVER BUTTE MINING COMPANY 

                        Form 10-QSB QUARTERLY REPORT 

                               May 31, 1998 


Part II                       OTHER INFORMATION 


Item 6.  Exhibits and Reports on Form 8-K.

         (b)  Reports on Form 8-K

The Company reported on Form 8-K dated April 10, 1998, that the Company 
had received from the State of Idaho an executed ten year renewal of its 
mineral lease.  The lease renewal is effective from January 1, 1998 
through December 31, 2007.  A copy of the lease was filed with the 
Form 8-K dated April 10, 1998, and is incorporated herein by reference.









































                                        9
<PAGE>


****************************************************************************
                                  SIGNATURES
****************************************************************************

In accordance with section 13 or 15(d) of the Exchange Act, the registrant 
caused this report to be signed on its behalf by the undersigned, thereunto 
duly authorized.


SILVER BUTTE MINING COMPANY
(Registrant)


/s/  R. Richard Rice
_________________________             Date:  July 15, 1998
R. Richard Rice
Title:  President
(Principle Executive Officer and
Principle Accounting Officer)






































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