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, 2002

                  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)Some Forms 10-Q were filed late
                                             during the past fiscal year


The number of shares of Common Stock, $.05 par value, outstanding as
of February 28,2002, was 8,485,415.



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 28,2002



INDEX

                                                                   Page
                                                                  Number

Part  I - FINANCIAL  INFORMATION

Item  1.  Condensed  Financial  Statements

     Balance Sheets, February 28, 2002, and August 31, 2001         3

     Income statements for the three months
          ended February 28, 2002, and February 28, 2001            4

     Cash Flow Statements for the three months ended
          February 28,2002 and February 28, 2001                    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, 2002 and August 31, 2001

                                             February 28,        August 31,
                                                 2002              2001
                                             ____________      ____________
ASSETS

CURRENT ASSETS
     Cash and cash equivalents               $       637       $     1,296
     Certificate of deposit State lease            5,000             5,000
     Marketable securities                        62,440            65,159
     Accounts receivable                             817               839
                                             ____________      ____________

         TOTAL CURRENT ASSETS                     68,894            72,294

PROPERTY, PLANT & EQUIPMENT
     Properties                                    3,000             3,000
     Equipment and machinery                       1,500             1,500
     Accumulated depreciation                     (1,500)           (1,500)
                                             ____________      ____________
                                                   3,000             3,000
                                             ____________      ____________

TOTAL ASSETS                                 $    71,894       $    75,294
                                             ============      ============

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES

   Accounts payable                          $     1,024       $     3,044
                                             ____________      ____________

SHAREHOLDERS' EQUITY

     Common stock, $.05 par value
       authorized 10,000,000 shares,
       issued and outstanding:
         8,485,415 shares at 2-28-2002           424,271
         8,015,415 shares at 8-31-2001                         400,771
     Additional paid-in capital                  370,919           385,019
     Accumulated deficit                        (724,320)         (713,540)

                                             ____________      ____________
         TOTAL SHAREHOLDERS' EQUITY               70,870            72,250
                                             ____________      ____________

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $    71,894       $    75,294
                                             ============      ============

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 28 2001 and February 28,2002

                            Three Months Ended            Six Months Ended
                        __________________________   __________________________
                        February 28,  February 28,   February 28,  February 28,
                            2002         2001           2002          2001
                        ____________  ____________   ___________   ____________

REVENUES
  Dividend income      $       301    $    1,014           780           2,036
  Interest income               50            78           104             158
                        ____________  ____________   ____________   ___________

       Total Revenues          351         1,092           884           2,194
                        ____________  ____________   ____________   ___________


EXPENSES
  Wages and other
    compensation              325           -               325           -
  Professional
    services                  356           565           1,504           616
  Taxes and insurance         137           -               137           104
  Rent                        -             -               -             -
  Office expense               21            21              42           125
  Miscellaneous               (52)          -               256           217
  Directors Fees              -             -               -           9,400
                        ____________  ____________   ____________   ___________

        Total Expenses        787           586          11,664         1,062
                        ____________  ____________   ____________   ___________

INCOME (LOSS) BEFORE         (436)          506         (10,780)        1,132
  INCOME TAXES

INCOME TAXES                  -            -                 -            -
                       ____________  ____________   ____________   ____________

NET INCOME (LOSS)       $    (436)   $      506     $   (10,780)   $    1,132
                       ============  ============   ============   ============

Income (Loss) per Share
  Of Common Stock
  Outstanding           $ (0.0001)   $   0.0001     $   (0.0013)   $    0.0001
                       ============  ============   ============   ============

Weighted Average Number
  Of Common Shares
  Outstanding            8,485,000     7,828,748       8,485,000     7,828,748
                       ============  ============   ============   ============


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 28, 2001 and February 28,2002



                                                   Six Months Ended
                                             ______________________________
                                             February 28,      February 28,
                                                 2002              2001
                                             ____________      ____________

CASH FLOWS FROM OPERATING ACTIVITIES

  Net Income (Loss)                          $   (10,780)      $     1,132
  Adjustments to reconcile net income
    (loss) to net cash provided by
    (used in) operating activities:
      Increase in payables                        (2,020)              -
      Decrease in prepaid expenses                   -                 -
      Decrease in receivables                         21               -
      Stock issued for services                    9,400               -
                                             ____________      ____________
           Net cash provided by (used in)
             operating activities                 (3,379)             1,132
                                             ____________      ____________

CASH FLOWS FROM INVESTING ACTIVITIES

      Decrease (increase) in marketable
        securities                                 2,720              (536)
                                             ____________      ____________
           Net cash provided by (used in)
              investing activities                 2,720              (536)
                                             ____________      ____________

NET INCREASE (DECREASE) IN
   CASH AND CASH EQUIVALENTS                        (659)              596

Cash and Cash Equivalents at Beginning
  of Period                                        6,296             5,674
                                             ____________      ____________

Cash and Cash Equivalents at End of Period   $     5,637       $     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 28,2002

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 28,2002, and
the  results  of  operations  for the  three  months ended February 28,2002  and
February  28,  2001,and cash  flows for the three months ended  February 28,2002
and  February  28, 2001.  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 t hat 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, 2002


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 a portion 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
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, 2002






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: March 28, 2002              /s/    /TERRY MCCONNAUGHEY/
                                      --------------------------------------
                                      Terry McConnaughey, President
                                      (Principal  Executive  Officer)





























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