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 May 31, 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 (X)        No ( )

     The number of shares of Common Stock, $.05 par value, outstanding as of
May 31, 2001, was 8,015,415.


DOCUMENTS INCORPORATED BY REFERENCE:  NONE

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




















<PAGE>
SILVER  BUTTE  MINING  COMPANY
FORM 10QSB QUARTERLY REPORT
MAY 31, 2001



INDEX
                                                                      Page
                                                                     Number
Part  I- FINANCIAL INFORMATION

Item 1.  Condensed Financial Statements (Unaudited)

     Balance Sheets, May 31, 2001, and August 31, 2000                 3

     Income statements for the three months and nine months
     ended May 31, 2001, and 2000                                      4

     Cash Flow Statements for the nine months ended May 31,
     2001, and 2000                                                    5

     Notes to Condensed Financial Statements                           6

Item 2.  Management's Discussion and Analysis of Financial
         condition and Results of Operations                           6-7

Signature Page                                                         7



































<PAGE>
SILVER  BUTTE  MINING  COMPANY
CONDENSED BALANCE SHEETS- UNAUDITED
MAY 31, 2001, AND AUGUST 31, 2000


                                                     May 31,        August 31,
                                                      2001            2000
                                                 --------------  --------------
ASSETS
CURRENT ASSETS
       Cash and cash equivalents                 $       1,213   $         652
       Certificate of deposit for State lease            5,000            5000
       Marketable securities                            65,516          64,177
       Accounts receivable                                 817             839
                                                 --------------  --------------
             TOTAL CURRENT ASSETS                       72,546          70,668
                                                 --------------  --------------

PROPERTY, PLANT & EQUIPMENT
       Properties                                        3,000           3,000
       Equipment and machinery                          19,704          19,704
       Accumulated depreciation                        (19,704)        (19,704)
                                                 --------------  --------------
             TOTAL FIXED ASSETS                          3,000           3,000
                                                 --------------  --------------
             TOTAL ASSETS                        $      75,546   $      73,668
                                                 ==============  ==============

LIABILITIES AND SHAREHOLDER'S EQUITY
CURRENT LIABILITIES
       Accounts payable                          $           0   $       1,400
                                                 --------------  --------------
             TOTAL CURRENT LIABILITIES                       0           1,400
                                                 --------------  --------------

SHAREHOLDERS' EQUITY
       Common stock, $.05 par value, authorized
         10,000,000 shares, issued and
         outstanding:
           7,828,748 shares 8-31-2000                      -           391,437
           8,015,415 shares 5-31-2001                  400,771             -
       Additional paid-in capital                      385,019         392,953
       Accumulated deficit                            (710,244)       (712,122)
                                                 --------------  --------------
             TOTAL SHAREHOLDER'S EQUITY                 75,546          72,268
                                                 --------------  --------------
             TOTAL LIABILITIES AND
             SHAREHOLDERS' EQUITY                $      75,546   $      73,668
                                                 ==============  ==============











The accompanying notes are an integral part of these financial statements

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SILVER  BUTTE  MINING  COMPANY
CONDENSED INCOME STATEMENTS- UNAUDITED
 FOR THE THREE AND NINE MONTHS ENDED MAY 31, 2001 AND 2000

<table>
<caption>
                                       Three Months ended           Nine Months ended
                                   --------------------------  --------------------------
                                      May 31,       May 31,       May 31,       May 31,
                                       2001          2000          2001          2000
                                   ------------  ------------  ------------  ------------

                                <c>           <c>           <c>           <c>
REVENUES
     Dividend income               $       803   $       750   $     2,840   $     2,322
     Interest income                        81            47           238           181
     Other Income                          100           -             100           -
                                   ------------  ------------  ------------  ------------
            Total Revenues                 984           797         3,178         2,503
                                   ------------  ------------  ------------  ------------

EXPENSES
     Compensation                          -             -             -             985
     Professional fees                     105            85           896         1,231
     Rent & royalties                      -             175           175           875
     Office expense                         76            21           -              96
     Taxes & insurance                     -             -             125            49
     Miscellaneous                          56           767           104           945
                                   ------------  ------------  ------------  ------------
            Total Expenses                 237         1,048         1,300         4,181
                                   ------------  ------------  ------------  ------------

INCOME (LOSS) BEFORE INCOME TAXES          747          (251)        1,878        (1,678)

INCOME TAXES                               -             -             -             -
                                   ------------  ------------  ------------  ------------

NET INCOME (LOSS)                  $       747   $      (251)  $     1,878   $    (1,678)
                                   ============  ============  ============  ============

Income (Loss) per Share
  of Common Stock Outstanding      $       NIL   $       NIL   $    0.0002   $   (0.0002)
                                   ============  ============  ============  ============

Weighted Average number of
 Common Shares Outstanding           7,899,790     7,828,748     8,015,415     7,828,748
                                   ============  ============  ============  ============
</TABLE>













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


<PAGE>
SILVER  BUTTE  MINING COMPANY
CONDENSED STATEMENTS OF CASH FLOWS-UNAUDITED
FOR THE NINE MONTHS ENDED MAY 31, 2001 AND 2000



                                                          Nine Months ended
                                                     --------------------------
                                                        May 31,       May 31,
                                                         2001          2000
                                                     ------------  ------------

CASH  FLOWS FROM  OPERATING
ACTIVITIES
  Net income (loss)                                  $     1,878   $    (1,678)
  Adjustments to reconcile net income (loss)
    to net cash provided by (used in)
    operating  activities:
      Increase (decrease) in payables                     (1,400)          884
      Decrease in prepaid expenses                           -             667
     (Decrease) Increase in receivables                      (22)          830
                                                     ------------  ------------
Net cash provided by (used in) operating
   Activities                                                456        (1,065)
                                                     ------------  ------------

CASH FLOWS FROM FINANCING ACTIVITIES
  Stock Issued to Pay Liablities                          (1,400)          -
                                                     ------------  ------------

CASH FLOWS FROM INVESTING ACTIVITIES
  Dividends received and reinvested in
    marketable securities                                  2,840         2,000
  Marketable Securities redeemed                          (1,335)       (2,322)
                                                     ------------  ------------
Net cash provided by (used in) investing
  activities                                               1,505          (322)
                                                     ------------  ------------

NET INCREASE IN CASH AND CASH EQUIVALENTS                    561        (1,387)

Cash and Cash Equivalents at Beginning of Period           5,652         1,893
                                                     ------------  ------------

Cash and Cash Equivalents at End of Period           $     6,213   $       506
                                                     ============  ============


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

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







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

<PAGE>
SILVER  BUTTE  MINING  COMPANY
NOTES TO CONDENSED FINANCIAL STATEMENTS- UNAUDITED
MAY 31, 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 May 31, 2001, and the
results of operations for the three months ended May 31, 2001 and 2000, and cash
flows for the three months ended May 31, 2001 and 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
10QSB,  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  decided  to  abandon  its status as a development stage enterprise by
ceasing  all  mine  exploration  activities  in 1994.  The Company's exploration
efforts  developed  no commercial ore deposits, and all capitalized mining costs
were  written off. The Company continues to search for business opportunities in
the  mining  industry,  and  will   also  investigate  opportunities   in  other
industries.  The  Company's  limited  financial  resources  limit its ability to
carry out the type of  mine exploration activity 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.

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.

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

     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
other  business  opportunities.  Management is unaware of any such opportunities
at  this  time and will disclose such opportunities to its shareholders when and
if  they  should  arise.

<PAGE>
SILVER  BUTTE  MINING  COMPANY
CONTINUATION OF ITEM 2
MAY 31, 2001

MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS


RESULTS OF OPERATION

REVENUES.

The Company's dividend and interest  income increased  slightly for the  quarter
ended May 31, 2001, compared to the same period ended May 31, 2000.

Total expenses for the periods involved were

             Three Months                      Nine Months
       -----------------------------  -----------------------------
       5-31-2001         5-31-2000    5-31-2001           5-31-2000
       $   237           $  1,048     $  1,300            $  4,181

FINANCIAL POSITION.

There  was  an increase of $1,339 in marketable securities at May 31, 2001, when
compared  to  the  balance  at  August  31,  2000, the previous fiscal year end.
Securities  are  sold  to  provide  funds  for  administrative  and  reclamation
expenses.  There  were  no  other changes in financial position during the third
quarter,  other  than  a  reduction  in  accounts  payable.

CASH  FLOWS.

Cash  and  cash equivalents increased $ 561 during the nine months ended May 31,
2001.  The  Company  has  no  plans  for  capital expenditures that will require
significant  amounts  of  cash.



SIGNATURE

     In accordance with the requirements 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

                                /s/ Robert Evans
Date:  June 28, 2001            ___________________________________
                                Robert Evans
                                (Principal Accounting Officer)



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