Butte Energy Inc. announced that it has learned of circumstances which lead it to believe that Genesis Group Limited ("Genesis) has breached its agreement with the Company. The Company has not yet formally communicated its position in this regard, and is evaluating its legal options. In the meantime, the Company has received a letter from Genesis which purports to confirm the Company's termination of the agreement with Genesis. The Company will provide further updates as developments occur. In the interim, funds received from subscribers to the subscription receipt financing announced on February 12, 2021 and February 19, 2021 will be returned to the subscribers as soon as possible.