|U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
|--------------------------------------------------------

|Form 10-Q
|---------

|(Mark one)
|----------

|[ X ] | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly
period ended March 31, 2011
|----- | -------------------------------------------------------------------------------------------------------------------------------------

|OR
|--

|[ ] | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|--- | ----------------------------------------------------------------------------------------

|Commission File No. 0-29417
|---------------------------

|
|

| | ALL Fuels & Energy Company                             | 
| | ------------------------------------------------------ | 
| | (Exact name of registrant as specified in its charter) | 

|
|

| | DELAWARE |  | 62-1581902 | 
| | -------- |  | ---------- | 

| | (State or Other Jurisdiction of
incorporation or organization) |  | (I.R.S. Employer
Identification Number) | 
| | -------------------------------------------------------------- |  | --------------------------------------- | 

|
|

| | 6165 N.W. 86th Street, Johnston, Iowa 50131 | 
| | ------------------------------------------- | 

| | (Address of principal executive offices, including zip code) | 
| | ------------------------------------------------------------ | 

| | (515) 331-6509 | 
| | -------------- | 

| | (Issuer’s telephone number, including area code) | 
| | ------------------------------------------------ | 

|
|

|Indicate by check mark whether the registrant (1) has 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 [  ]
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated
filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and
"smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one):
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Large accelerated filer [ ] |  | Accelerated filer [ ]
|--------------------------- |  | ---------------------

|Non-accelerated filer [ ] (Do not check if a smaller reporting company) |  | Smaller reporting company [ X ]
|----------------------------------------------------------------------- |  | -------------------------------

|Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes [ ] No [ X ]
|---------------------------------------------------------------------------------------------------------------------------------

|As of May 12, 2011, there were 64,732,747 shares of the issuer’s common stock outstanding.
|------------------------------------------------------------------------------------------

|PART I - FINANCIAL INFORMATION
|------------------------------

|Item 1.  Financial Statements
|-----------------------------

|INDEX TO FINANCIAL STATEMENTS
|-----------------------------

| | Page
| | ----

|ALL Fuels & Energy Company
|--------------------------

|Consolidated Balance Sheets as of March 31, 2011 (unaudited), and December 31, 2010 | 3
|----------------------------------------------------------------------------------- | -

|Consolidated Statements of Operations for the Three Months Ended March 31, 2011 and 2010
(unaudited), and the Period from Commencement of Development Stage (June 7, 2004) to March 31,
2011 (unaudited) | 4
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -

|Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2011 (unaudited) and
2010 (unaudited), and the Period from Commencement of Development Stage (June 7, 2004) to March
31, 2011 (unaudited) | 5
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -

|Notes to Consolidated Financial Statements | 7
|------------------------------------------ | -

| | ALL FUELS & ENERGY COMPANY | 
| | -------------------------- | 

| | (a development stage company) | 
| | ----------------------------- | 

| | CONSOLIDATED BALANCE SHEETS | 
| | --------------------------- | 

| | March 31, 2011, and December 31, 2010 | 
| | ------------------------------------- | 

| | 3/31/11
(unaudited) |  | 12/31/10
| | ------------------- |  | --------

|ASSETS
|------

|Current assets
|--------------

| | Cash and cash equivalents | $21,879 |  | $31,243
| | ------------------------- | ------- |  | -------

| | Prepaid expenses | --- |  | 18,807
| | ---------------- | --- |  | ------

| | Total current assets | 21,879 |  | 50,050
| | -------------------- | ------ |  | ------

|Property and equipment - at cost
|--------------------------------

| | Equipment | 3,333 |  | 3,333
| | --------- | ----- |  | -----

| | Less accumulated depreciation | (2,439) |  | (2,223)
| | ----------------------------- | ------- |  | -------

| | Total property and equipment - net | 894 |  | 1,110
| | ---------------------------------- | --- |  | -----

| | Total assets | $22,773 |  | $51,160
| | ------------ | ------- |  | -------

|LIABILITIES AND STOCKHOLDERS’ EQUITY
|------------------------------------

|Current liabilities
|-------------------

| | Accounts payable and accrued expenses | $541,231 |  | $463,459
| | ------------------------------------- | -------- |  | --------

| | Notes payable - related party | 71,000 |  | 88,611
| | ----------------------------- | ------ |  | ------

| | Notes payable - third party | 92,500 |  | 71,000
| | --------------------------- | ------ |  | ------

| | Total current liabilities | 704,731 |  | 623,070
| | ------------------------- | ------- |  | -------

|Stockholders’ equity
|--------------------

| | Preferred stock, $.01 par value; 50,000,000 shares authorized, -0- and -0-
shares issued and outstanding | --- |  | ---
| | -------------------------------------------------------------------------------------------------------- | --- |  | ---

| | Common stock, $.01 par value; 700,000,000 shares authorized,
64,732,747 and 64,682,747 shares issued in 2011 and 2010, respectively;
and 57,682,747 and 57,632,747 shares outstanding in 2011 and 2010,
respectively | 647,329 |  | 646,829
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------- |  | -------

| | Additional paid-in capital | 16,275,180 |  | 16,275,180
| | -------------------------- | ---------- |  | ----------

| | Treasury stock, at cost; 7,050,000 and 7,050,000 shares | (150,000) |  | (150,000)
| | ------------------------------------------------------- | --------- |  | ---------

| | Receivable from shareholder | (50,000) |  | (50,000)
| | --------------------------- | -------- |  | --------

| | Accumulated deficit | (6,423,944) |  | (6,423,944)
| | ------------------- | ----------- |  | -----------

| | Deficit accumulated during the development stage | (10,980,523) |  | (10,869,975)
| | ------------------------------------------------ | ------------ |  | ------------

| | Total stockholders’ equity (deficit) | (681,958) |  | (571,910)
| | ------------------------------------ | --------- |  | ---------

| | Total liabilities and stockholders’ equity | $22,773 |  | $51,160
| | ------------------------------------------ | ------- |  | -------

|The accompanying notes are an integral part of these statements.
|----------------------------------------------------------------

| | ALL FUELS & ENERGY COMPANY | 
| | -------------------------- | 

| | (a development stage company) | 
| | ----------------------------- | 

| | CONSOLIDATED STATEMENTS OF OPERATIONS | 
| | ------------------------------------- | 

| | For the Three Months Ended March 31, 2011 and 2010, and the Period from
Commencement of Development Stage (June 7, 2004) to March 31, 2011 | 
| | ------------------------------------------------------------------------------------------------------------------------------------------ | 

| | Three Months Ended March 31, |  |  | 
| | ---------------------------- |  |  | 

| | 2011
(unaudited) |  | 2010
(unaudited) |  | Period from
Commence-ment of
Development
Stage (June 7,
2004) to
3/31/11
(unaudited) |  |  |  | 
| | ---------------- |  | ---------------- |  | ------------------------------------------------------------------------------------ |  |  |  | 

|Revenues | $--- |  | $--- |  | $8,092 |  |  |  | 
|-------- | ---- |  | ---- |  | ------ |  |  |  | 

|Operating Costs and Expenses |  |  |  |  |  |  |  |  | 
|---------------------------- |  |  |  |  |  |  |  |  | 

| | Consulting | 4,214 |  | 875 |  | 7,761,095 |  |  |  | 
| | ---------- | ----- |  | --- |  | --------- |  |  |  | 

| | Legal and professional | 15,090 |  | 28,508 |  | 1,289,601 |  |  |  | 
| | ---------------------- | ------ |  | ------ |  | --------- |  |  |  | 

| | Impairment charge | --- |  | --- |  | 333,540 |  |  |  | 
| | ----------------- | --- |  | --- |  | ------- |  |  |  | 

| | Depreciation and
amortization | 216 |  | 274 |  | 8,365 |  |  |  | 
| | ----------------------------- | --- |  | --- |  | ----- |  |  |  | 

| | General and administrative | 83,570 |  | 86,660 |  | 2,039,305 |  |  |  | 
| | -------------------------- | ------ |  | ------ |  | --------- |  |  |  | 

| | Total operating expenses | 103,090 |  | 116,317 |  | 11,431,906 |  |  |  | 
| | ------------------------ | ------- |  | ------- |  | ---------- |  |  |  | 

|Other income (expense) |  |  |  |  |  |  |  |  | 
|---------------------- |  |  |  |  |  |  |  |  | 

| | Beneficial conversion
exercise | (3,889) |  | (76,000) |  | (171,000) |  |  |  | 
| | ------------------------------ | ------- |  | -------- |  | --------- |  |  |  | 

| | Interest expense | (3,575) |  | (2,623) |  | (76,039) |  |  |  | 
| | ---------------- | ------- |  | ------- |  | -------- |  |  |  | 

| | Interest income | 6 |  | 8 |  | 51,364 |  |  |  | 
| | --------------- | - |  | - |  | ------ |  |  |  | 

| | Rental income | --- |  | --- |  | 66,250 |  |  |  | 
| | ------------- | --- |  | --- |  | ------ |  |  |  | 

| | Loss on sale of land | --- |  | --- |  | (1,278) |  |  |  | 
| | -------------------- | --- |  | --- |  | ------- |  |  |  | 

| | Forgiveness of debt | --- |  | --- |  | 94,565 |  |  |  | 
| | ------------------- | --- |  | --- |  | ------ |  |  |  | 

| | Equity loss in subsidiary | --- |  | --- |  | (233,340) |  |  |  | 
| | ------------------------- | --- |  | --- |  | --------- |  |  |  | 

| | Total other income
(expense) | (7,458) |  | (78,615) |  | (269,478) |  |  |  | 
| | ---------------------------- | ------- |  | -------- |  | --------- |  |  |  | 

|Net loss | $(110,548) |  | $(194,932) |  | $(11,693,292) |  |  |  | 
|-------- | ---------- |  | ---------- |  | ------------- |  |  |  | 

|Income (loss) per share | $(0.00) |  | $(0.00) |  |  |  |  |  | 
|----------------------- | ------- |  | ------- |  |  |  |  |  | 

|Weighted average number of
shares outstanding (basic) | 64,716,080 |  | 51,891,608 |  |  |  |  |  | 
|----------------------------------------------------- | ---------- |  | ---------- |  |  |  |  |  | 

|Weighted average number of
shares outstanding (diluted) | 76,386,438 |  | 66,654,941 |  |  |  |  |  | 
|------------------------------------------------------- | ---------- |  | ---------- |  |  |  |  |  | 

|The accompanying notes are an integral part of these statements.
|----------------------------------------------------------------

| | ALL FUELS & ENERGY COMPANY | 
| | -------------------------- | 

| | (a development stage company) | 
| | ----------------------------- | 

| | CONSOLIDATED STATEMENTS OF CASH FLOWS | 
| | ------------------------------------- | 

| | For the Three Months Ended March 31, 2011 and 2010, and the Period from
Commencement of Development Stage (June 7, 2004) to March 31, 2011 | 
| | ------------------------------------------------------------------------------------------------------------------------------------------ | 

| | Three Months Ended March 31, | 
| | ---------------------------- | 

| | 2011
(unaudited) |  | 2010
(unaudited) |  | Period from
Commencement
of Development
Stage (June 7,
2004) to 3/31/11
(unaudited)
| | ---------------- |  | ---------------- |  | -----------------------------------------------------------------------------------

|CASH FLOWS FROM OPERATING ACTIVITIES |  |  |  |  | 
|------------------------------------ |  |  |  |  | 

|Net loss | $(110,548) |  | $(194,932) |  | $(11,693,292)
|-------- | ---------- |  | ---------- |  | -------------

| | Adjustments to reconcile net loss to cash used for
operating activities: |  |  |  |  | 
| | ------------------------------------------------------------------------ |  |  |  |  | 

| | Loss on sale of land | --- |  | --- |  | 1,278
| | -------------------- | --- |  | --- |  | -----

| | Loss on disposition of fixed assets | --- |  | --- |  | 187
| | ----------------------------------- | --- |  | --- |  | ---

| | Depreciation and amortization | 216 |  | 274 |  | 8,365
| | ----------------------------- | --- |  | --- |  | -----

| | Forgiveness of debt | --- |  | --- |  | 94,565
| | ------------------- | --- |  | --- |  | ------

| | Equity loss on subsidiary | --- |  | --- |  | 14,485
| | ------------------------- | --- |  | --- |  | ------

| | Non-cash beneficial conversion expense | 3,889 |  | 76,000 |  | 171,000
| | -------------------------------------- | ----- |  | ------ |  | -------

| | Options issued for compensation | --- |  | --- |  | 6,999,585
| | ------------------------------- | --- |  | --- |  | ---------

| | Stock issued for services and compensation | 500 |  | 22,000 |  | 1,243,845
| | ------------------------------------------ | --- |  | ------ |  | ---------

| | Impairment charge | --- |  | --- |  | 333,540
| | ----------------- | --- |  | --- |  | -------

| | Decrease (increase) in prepaids | 18,807 |  | (8,952) |  | (87,820)
| | ------------------------------- | ------ |  | ------- |  | --------

| | Increase in accounts payable | 77,772 |  | 55,724 |  | 374,550
| | ---------------------------- | ------ |  | ------ |  | -------

|Net cash used for operating activities | (9,364) |  | (49,886) |  | (2,539,712)
|-------------------------------------- | ------- |  | -------- |  | -----------

|CASH FLOWS FROM INVESTING ACTIVITIES |  |  |  |  | 
|------------------------------------ |  |  |  |  | 

| | Purchase of land | --- |  | --- |  | (951,238)
| | ---------------- | --- |  | --- |  | ---------

| | Increase in accrued liabilities - related party | --- |  | --- |  | 40,056
| | ----------------------------------------------- | --- |  | --- |  | ------

| | Proceeds from sale of land | --- |  | --- |  | 461,960
| | -------------------------- | --- |  | --- |  | -------

| | Purchase of office equipment | --- |  | --- |  | (4,160)
| | ---------------------------- | --- |  | --- |  | -------

| | Payments on construction-in-progress | --- |  | --- |  | (193,720)
| | ------------------------------------ | --- |  | --- |  | ---------

|Net cash used for investing activities | --- |  | --- |  | (647,102)
|-------------------------------------- | --- |  | --- |  | ---------

|
|

|The accompanying notes are an integral part of these statements.
|----------------------------------------------------------------

| | ALL FUELS & ENERGY COMPANY | 
| | -------------------------- | 

| | (a development stage company) | 
| | ----------------------------- | 

| | CONSOLIDATED STATEMENTS OF CASH FLOWS | 
| | ------------------------------------- | 

| | For the Three Months Ended March 31, 2011 and 2010, and the Period from
Commencement of Development Stage (June 7, 2004) to March 31, 2011 | 
| | ------------------------------------------------------------------------------------------------------------------------------------------ | 

| | Three Months Ended March 31, | 
| | ---------------------------- | 

| | 2011
(unaudited) |  | 2010
(unaudited) |  | Period from
Commencement
of Development
Stage (June 7,
2004) to 3/31/11
(unaudited)
| | ---------------- |  | ---------------- |  | -----------------------------------------------------------------------------------

|CASH FLOWS FROM FINANCING ACTIVITIES |  |  |  |  | 
|------------------------------------ |  |  |  |  | 

| | Proceeds from sale of common stock for cash | --- |  | --- |  | 2,703,623
| | ------------------------------------------- | --- |  | --- |  | ---------

| | Principal payments on related party advances | --- |  | --- |  | (3,988)
| | -------------------------------------------- | --- |  | --- |  | -------

| | Proceeds from notes payable - third party | --- |  | 65,000 |  | 100,000
| | ----------------------------------------- | --- |  | ------ |  | -------

| | Proceeds from notes payable - related party | --- |  | 11,000 |  | 71,000
| | ------------------------------------------- | --- |  | ------ |  | ------

| | Proceeds from long-term debt, net of deferred
borrowing costs | --- |  | --- |  | 483,120
| | ------------------------------------------------------------- | --- |  | --- |  | -------

| | Purchase of treasury stock | --- |  | --- |  | (150,000)
| | -------------------------- | --- |  | --- |  | ---------

| | Contributions from shareholders | --- |  | --- |  | 950
| | ------------------------------- | --- |  | --- |  | ---

|Net cash provided by financing activities | --- |  | 76,000 |  | 3,204,705
|----------------------------------------- | --- |  | ------ |  | ---------

|
|

|NET CHANGE IN CASH | (9,364) |  | 26,114 |  | 17,891
|------------------ | ------- |  | ------ |  | ------

|Cash, beginning of period | 31,243 |  | 4,748 |  | 3,988
|------------------------- | ------ |  | ----- |  | -----

|Cash, end of period | $21,879 |  | $30,862 |  | $21,879
|------------------- | ------- |  | ------- |  | -------

|
|

|The accompanying notes are an integral part of these statements.
|----------------------------------------------------------------

| | ALL FUELS & ENERGY COMPANY | 
| | -------------------------- | 

| | (a development stage company) | 
| | ----------------------------- | 

| | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | 
| | ------------------------------------------ | 

| | March 31, 2011
(unaudited) | 
| | -------------------------- | 

Note 1.  Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited interim financial statements of ALL Fuels & Energy Company (the “Company”) have been
prepared by the Company in accordance with accounting principles generally accepted in the United States of America,
pursuant to the Securities and Exchange Commission rules and regulations. In management’s opinion all adjustments
necessary for a fair presentation of the results for interim periods have been reflected in the interim financial statements.
The results of operations for any interim period are not necessarily indicative of the results for a full year. All adjustments
to the financial statements are of a normal recurring nature.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with
generally accepted accounting principles have been condensed or omitted. Such disclosures are those that would
substantially duplicate information contained in the most recent audited financial statements of the Company, such as
significant accounting policies and stock options. Management presumes that users of the interim statements have read
or have access to the audited financial statements and notes thereto included in the Company’s Annual Report on Form
10-K for the year ended December 31, 2010.

Note 2.  Going Concern



The Company has incurred losses totaling $11,693,292 through March 31, 2011, and had a working capital deficit of
$682,852 at March 31, 2011.  Because of these conditions, the Company will require additional working capital to
continue operations and develop its business. The Company intends to raise additional working capital either through
private placements, public offerings and/or bank financing.



There are no assurances that the Company will be able to achieve a level of revenues adequate to generate sufficient cash
flow from operations or obtain additional financing through private placements, public offerings and/or bank financing
necessary to support the Company’s working capital requirements. To the extent that funds generated from any private
placements, public offerings and/or bank financing are insufficient, the Company will have to raise additional working
capital. No assurance can be given that additional financing will be available, or if available, will be on terms acceptable
to the Company. If adequate working capital is not available, the Company may not continue its operations or execute
its business plan.

These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The financial
statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or
the amount and classification of liabilities that might be necessary should the Company be unable to continue as a going
concern.

Note 3.  Management’s Plans for Liquidity

Since the third quarter of 2009, $71,000 in loans from a director provided the Company with capital to sustain its
operations.  These loans made by this director are payable on demand and bear interest at 10% per annum and are
convertible, at the director’s option, into shares of the Company’s common stock at the rate of one share for every $.01
of debt converted.  This director has indicated that he will not demand payment of these loans, until such time as the
Company has adequate funds with which to repay the loans.

In January 2010, the Company borrowed $65,000 from a third party, and in May 2010, the Company borrowed $35,000
from the same third party, through the issuance of convertible promissory notes, payable in October 2010 (which was
not extended and the balance due as of December 31, 2010, is $92,500) and February 2011, respectively, bearing interest
at 8% per annum, and convertible into a number of shares based on the market price of the Company’s common stock.
On the dates of issuance, these promissory notes were convertible into an aggregate of approximately 16,000,000 shares
of Company common stock.  In August 2010, $7,500 of a convertible promissory note was converted into 2,508,361
shares of the Company’s common stock.

The Company will require additional funds, in order to sustain its operations through the remainder of 2011.  The
Company will require substantial additional capital to purchase one or more existing ethanol production facilities or to
pursue other business opportunities.  The Company believes it will be able to secure the financing, in the form of debt,
equity or a combination thereof, necessary to complete these opportunities.  The Company does not have a current
commitment for an equity investment or a loan in any amount.

During the remainder of 2011, the Company intends to commit its available capital, if any, to its pursuit of the acquisition
of an existing ethanol production facility. The needed funding will be sought from third parties.

Note 4.  Business of the Company

Ethanol Plant Acquisition Activities.  Since 2009, the Company has actively pursued the acquisition of several ethanol
plants.  The Company’s efforts in this regard have not yet been successful.  However, the Company continues to pursue
the acquisition of one or more ethanol plants and, currently, has begun formal negotiations for the acquisition of an
ethanol plant.  The Company is unable to determine whether these negotiations will result in its acquisition of such
ethanol plant. The Company will be required to obtain capital from third parties, in order to consummate any such
acquisition transaction.

Note 5.  Prepaid Expenses

At March 31, 2011, the Company had $-0- in prepaid expenses.  At December 31, 2010, the Company had prepaid
expenses of $18,807, which represented prepaid insurance and prepaid legal costs.

Note 6.  Notes Payable - Related Party

During the last half of 2009, one of the Company’s directors loaned the Company a total of $60,000 for use as working
capital.  In January 2010, the same director made an additional loan to the Company in the amount of $11,000.  All of
the loans made by this director are evidenced by promissory notes, are payable on demand, bear interest at 10% per
annum and are convertible, at the director’s option, into shares of the Company’s common stock at the rate of one share
for every $.01 of debt converted.  This director has indicated that he will not demand payment of these loans, until such
time as the Company has adequate funds with which to repay the loans.

Note 7.  Notes Payable - Third Party

In January 2010, the Company borrowed $65,000 from a third party and, in May 2010, the Company borrowed $35,000
from the same third party, through the issuance of convertible promissory notes, payable in October 2010 (which was
not extended and the balance due as of March 31, 2011, is $92,500, less a debt discount related to the conversion feature
of $3,889 which will be amortized in 2011) and February 2011 (which was not extended and the balance due as of March
31, 2011, is $35,000), respectively, bearing interest at 8% per annum, and convertible into a number of shares based on
the market price of the Company’s common stock.  On the dates of issuance, these promissory notes were convertible
into an aggregate of approximately 16,000,000 shares of Company common stock.  In August 2010, $7,500 of a
convertible promissory note was converted into 2,508,361 shares of the Company’s common stock.

Note 8.  Capital Stock

Common Stock for Director Bonus

In March 2010, the Company issued 50,000 shares of its common stock as a bonus to one of its directors.  These shares
were valued at $.04 per share, or $2,000, in the aggregate.

Common Stock for Services

During the first three months of 2011, the Company issued 50,000 shares of common stock in payment of $500 in
consulting services.

During the first three months of 2010, the Company issued 2,000,000 shares of common stock in payment of $20,000
in legal services.

Warrant Cancellation

In March 2010, a former Company director tendered for cancellation 5,520,366 warrants to purchase a like number of
shares of Company common stock.  The Company accepted such tender and cancelled all of such warrants.

Note 9.  Subsequent Events

Related Party Loan

In April 2011, one of the Company’s directors loaned the Company $5,000 for use as working capital.  The loan made
by this director is evidenced by a promissory note, is payable on demand, bears interest at 10% per annum and is
convertible, at the director’s option, into shares of the Company’s common stock at the rate of one share for every $.01
of debt converted.  This director has indicated that he will not demand payment of these loans, until such time as the
Company has adequate funds with which to repay the loans.

Third Party Loans

In April 2011, the Company borrowed $20,000 from a third party, through the issuance of a convertible promissory note,
payable on demand, bearing interest at 10% per annum, and convertible, at the third party’s option, into shares of the
Company’s common stock at the rate of one share for every $.01 of debt converted.  On the date of issuance, this
promissory note was convertible into 2,000,000 shares of Company common stock.

Also in April 2011, the Company borrowed $5,000 from a third party for use as working capital, through the issuance
of a convertible promissory note, payable on demand, bearing interest at 10% per annum, and convertible, at the third
party’s option, into shares of the Company’s common stock at the rate of one share for every $.01 of debt converted.
On the date of issuance, these promissory notes were convertible into a total of 1,000,000 shares of Company common
stock.

|Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations.
|-----------------------------------------------------------------------------------------------

|Critical Accounting Policies
|----------------------------

|While we believe that the factors considered provide a meaningful basis for the accounting policies applied in the
preparation of the condensed consolidated financial statements, we cannot guarantee that our estimates and
assumptions will be accurate. If such estimates and assumptions prove to be inaccurate, we may be required to make
adjustments to these estimates in future periods.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Litigation and Tax Assessments. Should we become involved in lawsuits, we intend to assess the likelihood of any
adverse judgments or outcomes of any of these matters as well as the potential range of probable losses. A
determination of the amount of accrual required, if any, for these contingencies will be made after careful analysis
of each matter. The required accrual may change from time to time, due to new developments in any matter or changes
in approach (such as a change in settlement strategy) in dealing with these matters.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Additionally, in the future, we may become engaged in various tax audits by federal and state governmental authorities
incidental to our business activities. We anticipate that we will record reserves for any estimated probable losses for
any such proceeding.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Stock-Based Compensation. We account for stock-based compensation based on the provisions of Accounting
Standard Codification (“ASC”) 718 Share Based Payments. ASC 718 requires companies to apply a fair-value-based
measurement method in accounting for share-based payment transactions with employees and to record compensation
cost for all stock awards granted after the required effective date and for awards modified, repurchased or cancelled
after that date. The scope of ASC 718 encompasses a wide range of share-based compensation arrangements,
including share options, restricted share plans, performance-based awards, share appreciation rights and employee
share purchase plans.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Recent Accounting Pronouncements.  There were no recent accounting pronouncements that our company has not
implemented that materially affect our financial statements.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Results of Operations - First Quarter 2011 vs. First Quarter 2010
|-----------------------------------------------------------------

|Revenues.  During the First Quarter 2011 and the First Quarter 2010, we generated no revenues.  Unless and until we
are successful in acquiring an existing ethanol plant, we do not expect that our operations will generate revenues.
Currently, we are seeking the acquisition of one or more ethanol plants.  We cannot predict whether we will be
successful in these efforts.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Expenses.  Our cash outlays for operating expenses during the First Quarter 2011 were $9,364, down from $49,886
for the First Quarter 2010.  Our non-cash operating expenses, which include stock issued for services, totaled $500
and $22,000 for the First Quarter 2011 and the First Quarter 2010, respectively.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|We continue to drastically reduce our monthly operating expenses, such that they are, including salary and
professional fees, currently approximately $10,000.  The level of such operating expenses are expected to remain at
such levels for the foreseeable future, unless we are able complete the acquisition of an existing ethanol production
facility, of which there is no assurance. Should our Ethanol Group continue to generate business opportunities, or
should we be successful in acquiring an ethanol plant or becoming the operator of an ethanol plant, our operating
expenses will significantly increase, although we are unable to predict the amount of such increase.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Financial Condition
|-------------------

|At March 31, 2011, we had $21,879 in cash and a working capital deficit of $682,852.  At December 31, 2010, our
cash position was $31,243 and our working capital deficit was $573,020.  Our current cash position is adequate to
sustain our current level of operations for approximately four months, unless we are able to obtain operating capital.
In addition, as discussed below, we will be required to obtain additional capital to pursue current business
opportunities and otherwise to pursue our complete plan of business.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|During the last half of 2009, one of the Company’s directors loaned the Company a total of $60,000 for use as
working capital.  In January 2010, the same director made an additional loan to the Company in the amount of
$11,000.  All of the loans made by this director are evidenced by promissory notes, are payable on demand, bear
interest at 10% per annum and are convertible, at the director’s option, into shares of the Company’s common stock
at the rate of one share for every $.01 of debt converted.  This director has indicated that he will not demand payment
of these loans, until such time as the Company has adequate funds with which to repay the loans.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|In January 2010, the Company borrowed $65,000 from a third party and, in May 2010, the Company borrowed
$35,000 from the same third party, through the issuance of convertible promissory notes, payable in October 2010
(which was not extended and the balance due as of March 31, 2011, is $92,500, less a debt discount related to the
conversion feature of $3,889 which will be amortized in 2011) and February 2011 (which was not extended and the
balance due as of March 31, 2011, is $35,000), respectively, bearing interest at 8% per annum, and convertible into
a number of shares based on the market price of the Company’s common stock.  On the dates of issuance, these
promissory notes were convertible into an aggregate of approximately 16,000,000 shares of Company common stock.
In August 2010, $7,500 of a convertible promissory note was converted into 2,508,361 shares of the Company’s
common stock.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|In April 2011, one of the Company’s directors loaned the Company $5,000 for use as working capital.  The loan made
by this director is evidenced by a promissory note, is payable on demand, bears interest at 10% per annum and is
convertible, at the director’s option, into shares of the Company’s common stock at the rate of one share for every
$.01 of debt converted.  This director has indicated that he will not demand payment of these loans, until such time
as the Company has adequate funds with which to repay the loans.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|In April 2011, the Company borrowed $20,000 from a third party, through the issuance of a convertible promissory
note, payable on demand, bearing interest at 10% per annum, and convertible, at the third party’s option, into shares
of the Company’s common stock at the rate of one share for every $.01 of debt converted.  On the date of issuance,
this promissory note was convertible into 2,000,000 shares of Company common stock.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Also in April 2011, the Company borrowed $5,000 from a third party for use as working capital, through the issuance
of a convertible promissory note, payable on demand, bearing interest at 10% per annum, and convertible, at the third
party’s option, into shares of the Company’s common stock at the rate of one share for every $.01 of debt converted.
On the date of issuance, these promissory notes were convertible into a total of 1,000,000 shares of Company common
stock.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Management’s Plans Relating to Future Liquidity
|-----------------------------------------------

|We currently possess approximately $10,000 in cash. However, we will require additional capital to maximize the
potential for strategic acquisitions. We may never obtain capital for this purpose. Should we locate an existing ethanol
production facility that we are able to acquire, we would be unable to complete any such acquisition, without
significant financing. While our management believes we will be able to secure the financing, in the form of debt,
equity or a combination thereof, necessary to complete any such proposed acquisition, there is no assurance that such
will be the case. This uncertainty in the availability of financing has been exacerbated by the recent severe downturn
in the U.S. economy lead by the banking and securities industries.  To date, we have not received a commitment for
an equity investment or a loan in any amount.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Capital Expenditures
|--------------------

|During the First Quarter 2011 and the First Quarter 2010, we made no capital expenditures.  We cannot predict the
amount of any future capital expenditures, if any.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Item 3.  Quantitative and Qualitative Disclosures About Market Risk.
|--------------------------------------------------------------------

|Not applicable.
|---------------

|Item 4.  Controls and Procedures.
|---------------------------------

|Our Chief Executive Officer/Acting Chief Financial Officer, after evaluating the effectiveness of our disclosure
controls and procedures, as defined in Rule 13a-15(e) of the Securities Exchange Act of 1934 has concluded that, as
of the end of the fiscal quarter covered by this report on Form 10-Q, our disclosure controls and procedures were
effective to provide reasonable assurances that information required to be disclosed in the reports filed or submitted
under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods
specified in the Securities and Exchange Commission’s rules and forms and such information is accumulated and
communicated to management, including the Chief Executive Officer/Acting Chief Financial Officer, as appropriate,
to allow timely decisions regarding disclosures.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|There was no change in our internal control over financial reporting during the quarter ended March 31, 2011, that
has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial
reporting.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|PART II - OTHER INFORMATION
|---------------------------

|Item 1. Legal Proceedings.
|--------------------------

|We are not currently involved in any legal proceedings.
|-------------------------------------------------------

|Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
|--------------------------------------------------------------------

|All unregistered sales of equity securities occurring during the first three months of 2011 have been reported
previously.
|--------------------------------------------------------------------------------------------------------------------------

|Item 3. Defaults upon Senior Securities.
|----------------------------------------

|None.
|-----

|Item 4. Submission of Matters to a Vote of Security Holders.
|------------------------------------------------------------

|No matter was submitted to our shareholders, during the three months ended March 31, 2010.
|------------------------------------------------------------------------------------------

|Item 5. Other Information.
|--------------------------

|None.
|-----

|Item 6. Exhibits.
|-----------------

| | Exhibit No. |  | Description
| | ----------- |  | -----------

| | 31.1 * |  | Certification of Chief Executive Officer and Principal Financial and Accounting
Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
| | ------ |  | -------------------------------------------------------------------------------------------------------------------------------------------------

| | 32.1 * |  | Certification of Chief Executive Officer and Principal Financial and Accounting
Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
| | ------ |  | -------------------------------------------------------------------------------------------------------------------------------------------------

| | * filed herewith.
| | -----------------

|
|

|SIGNATURES
|----------

|In accordance with the requirements of the Securities Exchange Act of 1934, Registrant has duly caused this report
to be signed on its behalf by the undersigned, hereunto duly authorized.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|
|

|Date: May 22, 2011. | ALL FUELS & ENERGY COMPANY
|------------------- | --------------------------

|
|

| | By: | /s/ DEAN E. SUKOWATEY | 
| | --- | --------------------- | 

| | Dean E. Sukowatey, President and Acting
Chief Financial Officer | 
| | --------------------------------------------------------------- |