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 quarterly period ended February 28, 2001

                  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)


            520 Cedar Street, Sandpoint, ID                   83864
       (Address of Principal Executive Offices)             (Zip Code)

                             (208) 263-5154
          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)This report is being filed late


The number of shares of Common Stock, $.05 par value, outstanding as
of February 28,2001, was 7,828,748.



DOCUMENTS INCORPORATED BY REFERENCE:  NONE

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
















Document page 1 of 8
SILVER  BUTTE  MINING  COMPANY
FORM  10-QSB  QUARTERLY  REPORT
February 28,2001



INDEX

                                                                   Page
                                                                  Number

Part  I - FINANCIAL  INFORMATION

Item  1.  Condensed  Financial  Statements

     Balance Sheets, February 28, 2001, and August 31, 2000         3

     Income statements for the three months
          ended February 28, 2001, and February 29, 2000            4

     Cash Flow Statements for the three months ended
          February 28,2001 and February 29, 2000                    5

     Notes  to  Condensed  Financial  Statements                    6

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

Signature  Page                                                     8

































Document page 2 of 8
SILVER BUTTE MINING COMPANY
CONDENSED BALANCE SHEETS
February 28, 2001 and August 31, 2000


                                             February 28,        August 31,
                                                 2001              2000
                                             ____________      ____________


ASSETS

CURRENT ASSETS
     Cash and cash equivalents               $     1,270       $       674
     Certificate of deposit State lease            5,000             5,000
     Marketable securities                        64,713            64,177
     Accounts receivable                             817               817
     Prepaid expenses
                                             ____________      ____________

         TOTAL CURRENT ASSETS                     71,800            70,668

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                                 $    74,800       $    73,668
                                             ============      ============

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES

   Accounts payable                          $     1,400       $     1,400
                                             ____________      ____________

         TOTAL CURRENT LIABILITIES                 1,400             1,400
                                             ____________      ____________
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                        (710,990)         (712,122)

                                             ____________      ____________

         TOTAL SHAREHOLDERS' EQUITY               73,400            72,268
                                             ____________      ____________

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $    74,800       $    73,668
                                             ============      ============


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

Document page 3 of 8
SILVER BUTTE MINING COMPANY
CONDENSED INCOME STATEMENTS
For the Three and Six Months Ended February 29, 2000 and February 28,2001

<TABLE>
                             Three Months Ended                    Six Months Ended
                        __________________________           __________________________
                        February 29,  February 28,           February 29,   February 28,
                            2000         2001                     2000          2001
                        ____________  ____________           ___________    ___________
<S>                     <C>           <C>                    <C>            <C>
REVENUES
  Dividend income      $       750    $    1,014	                  1,572          2,036
  Interest income               67            78	                    134            158
  Rock sales                    -              -                    -              -
  Misc. other income            -              -
                        ____________  ____________           ___________    ___________

       Total Revenues          817         1,092	                  1,706          2,194
                        ____________  ____________           ___________    ___________


EXPENSES
  Wages and other
    compensation              985          -                      1,034            -
  Professional
    services                1,026           565	                   1,135            616
  Taxes and insurance          48           -                        -	             104
  Rent                        700	           875                     175
  Office expense               27            21                      85            125
  Miscellaneous                -	              4                      42            -
                        ____________  ____________          ____________    ___________

        Total Expenses      2,786           586	                   3,133          1,062
                        ____________  ____________          	____________    ___________

INCOME (LOSS) BEFORE       (1,969)          506	                  (1,427)         1,132
  INCOME TAXES

INCOME TAXES                    -             -                      -	              -
                       ____________  ____________           ____________    ____________

NET INCOME (LOSS)       $  (1,969)   $      506	             $    (1,427)    $     1,132
                       ============  ============           ============    ============

Income (Loss) per Share
  Of Common Stock
  Outstanding           $(0.0003)  $   (0.0001)             $    (0.0002)   $    (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.

Document page 4 of 8
SILVER BUTTE MINING COMPANY
CONDENSED STATEMENTS OF CASH FLOWS
For the Six Months Ended February 29, 2000 and February 28,2001



                                                   Six Months Ended
                                             ______________________________
                                             February 29,      February 28,
                                                 2000              2001
                                             ____________      ____________




CASH FLOWS FROM OPERATING ACTIVITIES

  Net Income (Loss)                          $    (1,427)      $      1,132
  Adjustments to reconcile net income
    (loss) to net cash provided by
    (used in) operating activities:
      Increase in payables                          (516)               -
      Decrease in prepaid expenses                   176                -
      Decrease in receivables                          1                -
                                             ____________      ____________
           Net cash provided by (used in)
             operating activities                 (1,766)            1,132
                                             ____________      ____________

CASH FLOWS FROM INVESTING ACTIVITIES

      Decrease (increase) in marketable
        securities                                   426              (536)
                                             ____________      ____________
           Net cash provided by (used in)
              investing activities                   426              (536)
                                             ____________      ____________

NET INCREASE (DECREASE) IN
   CASH AND CASH EQUIVALENTS                      (1,340)              596

Cash and Cash Equivalents at Beginning
  of Period                                        6,893             5,674
                                             ____________      ____________

Cash and Cash Equivalents at End of Period   $     5,553       $     6,270
                                             ============      ============

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


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





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

Document page 5 of 8

SILVER  BUTTE  MINING  COMPANY
NOTES  TO  CONDENSED  FINANCIAL  STATEMENTS-UNAUDITED
February 28,2001

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 February 28,2001, and
the  results  of  operations  for  the  three  months ended February 28,2001 and
February  29,  2000,and  cash  flows for the three months ended February 28,2001
and  February  29, 2000.  Interim results  are  not  necessarily  indicative  of
results  for  a  full  year.

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.     Company  Business

The Company was incorporated under the laws of the State of Idaho on January 19,
1965,  and  was  in  the  exploratory  mining  stage from its inception until it
abandoned  its  status  as  a  development  stage enterprise by ceasing all mine
exploration  activities   in  1994.   The  company's  mine  exploration  efforts
developed  no  commercial  ore  deposits,  and all capitalized mining costs were
written off.  The Company  continues  to search for  new business opportunities.
The  Company's  financial  resources  limit its ability to carry out the type of
mining  exploration   activity  that  it  performed   in  past  years,  and  the
Company's  management  considers  it  unlikely  that  the  Company  will  obtain
additional  funding  with  which  to  undertake  such  exploration in the future


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's management estimates would be
less  than  $10,000.




















Document  page  6  of  8
SILVER  BUTTE  MINING  COMPANY
FORM  10-QSB  QUARTERLY  REPORT
February 28, 2001


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 a commercial ore deposit 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 these should arise.

RESULTS  OF  OPERATIONS

REVENUES.  The Company's only income  during the current year has  been interest
income and dividend income.

The company may  continue to sell  marketable securities,  if necessary,  during
the balance of the fiscal  year to provide cash for operating expenses in excess
of income.





























Document  page  7  of  8
SILVER  BUTTE  MINING  COMPANY
FORM  10-QSB  QUARTERLY  REPORT
February 28, 2001






SIGNATURE


     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)


     Date: May 11,2001                /s/    TERRY MCCONNAUGHEY
                                      --------------------------------------
                                      Terry McConnaughey, President
                                      (Principal  Executive  Officer)