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hours per response   135.00  UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C.  20549  FORM 10-QSB   [ X ]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  For the quarterly period November 30, 2006  OR  [    ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  For the transition period from  to  Commission file number: 001-05970  Silver Butte Co., Inc.  (Exact name of registrant as specified in its charter)  Nevada 82-0263301  (State of other jurisdiction of incorporation (I.R.S. Employer Identification No.) or organization)  520 Cedar Street, Sandpoint, ID 83864  (Address of principal executive offices) (Zip Code)  (208) 263-5154  (Issuer'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 Exchange Act during the past 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 at least the past 90 days. Yes    [X]     No  Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act.)  [X] Yes [  ] No  State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date: At January 9, 2007, 17,743,746 shares of the Companys common stock were outstanding.  Transitional Small Business Disclosure Format (check one);  Yes   [  ]       No     [X]  SEC 2334 (10-04) Potential persons who are to respond to the collection of information contained in this form are not required to respond unless the  form displays a currently valid OMB control number.   1         SILVER BUTTE CO., INC. TABLE OF CONTENTS  PART I. 3 ITEM 1.  FINANCIAL INFORMATION 3 Balance Sheets, November 30 2006 (Unaudited) and August 31, 2006 3 Statements of Operations for the three months ended November 30, 2006 and 2005 - Unaudited 4 Statements of Cash Flows for the three months ended November 30, 2006 and 2005 - Unaudited 5 Notes to Financial Statements - Unaudited 6  ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN OF OPERATION 7 MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN OF OPERATION, continued: 8 ITEM 3. CONTROLS AND PROCEDURES 8 PART II 8 ITEM 1. LEGAL PROCEEDINGS 8  ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 8 ITEM 3. DEFAULTS UPON SENIOR SECURITIES 8 ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS 8 ITEM 5. OTHER INFORMATION 8 ITEM 6. EXHIBITS 9    2       PART I.   ITEM 1.  FINANCIAL INFORMATION  Silver Butte Co., Inc.  Balance Sheets, November 30 2006 (Unaudited) and August 31, 2006  November 30 2006 August 31, (unaudited) 2006 ASSETS  Current assets: Cash and cash equivalents $ 40,066 $ 15,078  Total assets $ 40,066 $ 15,078  LIABILITES AND STOCKHOLDERS EQUITY  Current liabilities: Accounts payable $ 10,800 $ 83 Total current liabilities 10,800 83  Stockholders equity: Preferred stock, $0.001 par value; 10,000,000 shares authorized, none issued and outstanding Common stock, $0.001 par value; 300,000,000 shares authorized, 17,743,746 and 17,277,080 shares issued and outstanding at November 30 2006 and August 31, 2006, respectively 17,744 17,277 Additional paid-in capital 910,525 882,992 Accumulated deficit (899,003) (885,274) Total stockholders equity 29,266 14,995  Total liabilities and stockholders equity $ 40,066 $ 15,078     The accompanying notes are an integral part of these financial statements. .  3     Silver Butte Co., Inc.  Statements of Operations for the three months ended November 30, 2006 and 2005 - Unaudited     2006 2005 Operating expenses: Professional service fees $ 13,784 $ 9,246 Professional service fees paid to related parties - 976 Other general and administrative 62 139 Total operating expenses 13,846 10,361  Other income: Interest and dividend income 117 95  Net loss $ 13,729 $ 10,266  Loss per common share  basic Nil Nil  Weighted average common shares outstanding  basic 17,655,285 17,123,784 :          The accompanying notes are an integral part of these financial statements. .  4      Silver Butte Co., Inc.  Statements of Cash Flows for the three months ended November 30, 2006 and 2005 - Unaudited    2006 2005  Cash flows from operating activities: Net loss $ (13,729) $ (10,266) Adjustments to reconcile net loss to net cash used in operating activities: Increase in: Accounts payable 10,717 9,246 Accounts payable to related party - 557 Net cash used by operating activities (3,012) (463)  Cash flows from financing activities: Proceeds from sale of common stock 28,000 31,000 Net cash provided by financing activities 28,000 31,000  Net increase in cash and cash equivalents 24,988 30,537 Cash and cash equivalents, beginning of period 15,078 5,558  Cash and cash equivalents, end of period $ 40,066 $ 36,095          The accompanying notes are an integral part of these financial statements.  5     Silver Butte Co., Inc.    Notes to Financial Statements - Unaudited  1.  Basis of Presentation The financial statements of Silver Butte Co., Inc. (the Company) included herein have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission.  Although certain information normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted, the Company believes that the disclosures are adequate to make the information presented not misleading. These financial statements should be read in conjunction with the financial statements and notes thereto for the fiscal year ended August 31, 2006, included in the Companys Form 10-KSB.  The financial statements included herein reflect all normal recurring adjustments that, in the opinion of management, are necessary for a fair presentation.   The results for interim periods are not necessarily indicative of trends or of results to be expected for the full year ended August 31, 2007.  2.  Description of Business Silver Butte Co., Inc. is a Nevada corporation, and the successor of Silver Butte Mining Company, an Idaho corporation that was incorporated on January 19, 1965.  The Company was originally organized to explore, acquire and develop mineral properties and rights primarily in Idaho. However, the Companys exploration activities never developed any commercial ore deposits. During prior years, the Company made a strategic decision to abandon or sell its mineral properties and rights, and favorably position itself to seek other profitable business opportunities.  6         ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN OF OPERATION  General This Form 10-QSB contains forward-looking statements.  Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance and underlying assumptions that are not statements of historical facts.  This document and any other written or oral statements made by us or on our behalf may include forward-looking statements, which reflect our current views with respect to future events and financial performance.  The words believe, expect, anticipate, intends, estimates, forecast, project and similar expressions identify forward-looking statements.  The forward-looking statements in this document are based upon various assumptions, many of which are based on managements discussion and analysis or plan of operations and elsewhere in this report. Although we believe that these assumptions were reasonable when made, these statements are not guarantees of future performance and are subject to certain risks and uncertainties, some of which are beyond our control, and are difficult to predict.  Actual results could differ materially from those expressed in forward-looking statements.   Readers are cautioned not to place undue reliance on any forward-looking statements, which reflect managements view only as of the date of this report.  Plan of Operation The Companys purpose is to seek, investigate and, if such investigation warrants, acquire an interest in business opportunities presented to it by persons or firms who desire to seek the perceived advantages of a publicly registered corporation.  The Company will not restrict its search to any specific business, industry, or geographical location and the Company may participate in a business venture of virtually any kind or nature.  The Company may seek a business opportunity with entities which have recently commenced operations, or wish to utilize the public marketplace in order to raise additional capital in order to expand into new products or markets, to develop a new product or service, or for other corporate purposes.  The Company may acquire assets and establish wholly-owned subsidiaries in various businesses, or acquire existing businesses as subsidiaries.  Business opportunities may be available in many different industries and at various stages of development, all of which will make the task of comparative investigation and analysis of such business opportunities extremely difficult and complex.  Management of the Company, while not especially experienced in matters relating to the new business of the Company, will rely primarily upon their own efforts to accomplish the business purposes of the Company.  It is not anticipated that any outside consultants or advisors, other than the Company's legal counsel, will be utilized by the Company to effectuate its business purposes described herein.  Financial Condition and Liquidity During the three month period ended November 30 2006, the Company used $3,012 of cash for operating activities, compared to $463 used for operating activities during the three months ended November 30, 2005.   7      During the first quarter ended November 30, 2006, the Company had a private placement offering for the sale of 600,000 shares of the Companys common stock at a price of $0.06 per share for cash only. No warrants were granted in connection with this offering. Through November 30, 2006, 466,666 shares were sold for total proceeds of $28,000.  Proceeds from this offering will be used to finance ongoing operations.   ITEM 3.  CONTROLS AND PROCEDURES  An evaluation was performed by The Registrant's President and Secretary/ Treasurer of the effectiveness of the design and operation of the Registrants disclosure controls and procedures. Based on that evaluation, the president and secretary/treasurer concluded that disclosure controls and procedures were effective as of November 30, 2006, in ensuring that all material information required to be filed in this quarterly report has been made known to them in a timely fashion.  There has been no change in our internal control over financial reporting during the three month period ended November 30, 2006, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.   PART II   ITEM 1. LEGAL PROCEEDINGS NONE   ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS  During the quarter ended November 30, 2006, the Company had a private placement offering for the sale of 600,000 shares of the Companys common stock at a price of $0.06 per share for cash only. No warrants were granted in connection with this offering. Through November 30, 2006, 466,666 shares were sold for total proceeds of $28,000.  Proceeds from this offering will be used to finance ongoing operations.   ITEM 3. DEFAULTS UPON SENIOR SECURITIES NONE   ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS NONE.   ITEM 5. OTHER INFORMATION NONE.    8     ITEM 6. EXHIBITS  Exhibit 31.1  Certification required by Rule 13a-14(a) or Rule 15d-14(a).McConnaughey Exhibit 31.2  Certification required by Rule 13a-14(a) or Rule 15d-14(a), Evans Exhibit 32.1  Certification required by Rule 13a-14(b) or Rule 15d-14(b) and section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, McConnaughey Exhibit 32.2  Certification required by Rule 13a-14(b) or Rule 15d-14(b) and section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, Evans.  9     SIGNATURES  Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.  SILVER BUTTE CO., INC. (Registrant)  By:      /s/ Terry McConnaughey Terry McConnaughey, President and Director Date:  January 12, 2007   Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.  By    /s/ Robert J. Evans  Robert J. Evans, Secretary/Treasurer and Director Date:  January 12, 2007          10