| Colorado                                 | 84-0627918             |
|------------------------------------------|------------------------|
| (State or other jurisdiction of          | (IRS Employer          |
| incorporation or organization)           | Identification Number) |
|                                     |                   |
| 214 West Texas Avenue, Suite 1101        |                   |
| Midland, Texas                           | 79701                  |
| (Address of principal executive offices) | (Zip code)             |

| Large Accelerated Filer [  ] | Accelerated Filer [  ]    |
|----------------------------------------|-------------------------------------|
|                                   |                                |
| Non-Accelerated Filer [  ]   | Smaller reporting company [√] |

----

|                                     |     | Table of Contents                                                                                                                    |   |
|------------------------------------------|----------|--------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                     |     |                                                                                                                                 | Page   |
| PART I.  FINANCIAL INFORMATION |     |
|                                     |     |
|                                     | Item 1.  | Consolidated Balance Sheets (Unaudited) as of December 31, 2010 and March 31, 2010                                                   | 3      |
|                                     |     |                                                                                                                                 |   |
|                                     |     | Consolidated Statements of Operations (Unaudited) for the three months and nine months ended December 31, 2010 and December 31, 2009 | 4      |
|                                     |     |                                                                                                                                 |   |
|                                     |     | Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) as of December 31, 2010                                 | 5      |
|                                     |     |                                                                                                                                 |   |
|                                     |     | Consolidated Statements of Cash Flows (Unaudited) for the nine months ended December 31, 2010 and December 31, 2009                  | 6      |
|                                     |     |                                                                                                                                 |   |
|                                     |     | Notes to Consolidated Financial Statements (Unaudited)                                                                               | 7      |
|                                     |     |                                                                                                                                 |   |
|                                     | Item 2.  | Management's Discussion and Analysis of Financial Condition and Results of Operations                                                | 12     |
|                                     |     |                                                                                                                                 |   |
|                                     | Item 3.  | Quantitative and Qualitative Disclosures About Market Risk                                                                           | 16     |
|                                     |     |                                                                                                                                 |   |
|                                     | Item 4.  | Controls and Procedures                                                                                                              | 16     |
|                                     |     |                                                                                                                                 |   |
| PART II.  OTHER INFORMATION    |     |
|                                     |     |
|                                     | Item 1.  | Legal Proceedings                                                                                                                    | 17     |
|                                     |     |                                                                                                                                 |   |
|                                     | Item 1A. | Risk Factors                                                                                                                         | 17     |
|                                     |     |                                                                                                                                 |   |
|                                     | Item 2.  | Unregistered Sales of Equity Securities and Use of Proceeds                                                                          | 17     |
|                                     |     |                                                                                                                                 |   |
|                                     | Item 3.  | Defaults upon Senior Securities                                                                                                      | 17     |
|                                     |     |                                                                                                                                 |   |
|                                     | Item 4.  | Removed and Reserved                                                                                                                 | 17     |
|                                     |     |                                                                                                                                 |   |
|                                     | Item 5.  | Other Information                                                                                                                    | 17     |
|                                     |     |                                                                                                                                 |   |
|                                     | Item 6.  | Exhibits                                                                                                                             | 17     |
|                                     |     |                                                                                                                                 |   |
| SIGNATURES                               | 17       |
|                                     |     |
| CERTIFICATIONS                           |     |

----

| Mexco Energy Corporation and Subsidiaries                                                                                                |   |
|------------------------------------------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED BALANCE SHEETS                                                                                                              |   |
|                                                                                                                                     |   |   |   |   |   |   |
|                                                                                                                                     |   | December 31, |   |   | March 31, |   |
|                                                                                                                                     |   | 2010 |   |   | 2010 |   |
|                                                                                                                                     |   | (Unaudited) |   |   |   |   |
| ASSETS                                                                                                                                   |   |   |   |   |   |   |
| Current assets                                                                                                                           |   |   |   |   |   |   |
| Cash and cash equivalents                                                                                                                |   | $ | 165,573 |   |   | $ | 160,439 |   |
| Accounts receivable:                                                                                                                     |   |   |   |   |   |   |   |   |
| Oil and gas sales                                                                                                                        |   |   | 408,326 |   |   |   | 538,444 |   |
| Trade                                                                                                                                    |   |   | 33,542 |   |   |   | 63,455 |   |
| Related parties                                                                                                                          |   |   | - |   |   |   | 55 |   |
| Prepaid costs and expenses                                                                                                               |   |   | 83,688 |   |   |   | 17,161 |   |
| Total current assets                                                                                                                     |   |   | 691,129 |   |   |   | 779,554 |   |
|                                                                                                                                     |   |   |   |   |   |   |   |   |
|                                                                                                                                     |   |   |   |   |   |   |   |   |
|                                                                                                                                     |   |   |   |   |   |   |   |   |
| Property and equipment, at cost                                                                                                          |   |   |   |   |   |   |   |   |
| Oil and gas properties, using the full cost method                                                                                       |   |   | 29,643,465 |   |   |   | 27,353,016 |   |
| Other                                                                                                                                    |   |   | 78,520 |   |   |   | 76,161 |   |
|                                                                                                                                     |   |   | 29,721,985 |   |   |   | 27,429,177 |   |
|                                                                                                                                     |   |   |   |   |   |   |   |   |
| Less accumulated depreciation, depletion and amortization                                                                                |   |   | 14,942,407 |   |   |   | 14,179,156 |   |
| Property and equipment, net                                                                                                              |   |   | 14,779,578 |   |   |   | 13,250,021 |   |
|                                                                                                                                     |   | $ | 15,470,707 |   |   | $ | 14,029,575 |   |
|                                                                                                                                     |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                     |   |   |   |   |   |   |   |   |
| Current liabilities                                                                                                                      |   |   |   |   |   |   |   |   |
| Accounts payable and accrued expenses                                                                                                    |   | $ | 181,204 |   |   | $ | 301,160 |   |
|                                                                                                                                     |   |   |   |   |   |   |   |   |
| Long-term debt                                                                                                                           |   |   | 1,950,000 |   |   |   | 700,000 |   |
| Asset retirement obligations                                                                                                             |   |   | 508,286 |   |   |   | 486,305 |   |
| Deferred income tax liabilities                                                                                                          |   |   | 888,158 |   |   |   | 902,757 |   |
|                                                                                                                                     |   |   |   |   |   |   |   |   |
| Commitments and contingencies                                                                                                            |   |   |   |   |   |   |   |   |
|                                                                                                                                     |   |   |   |   |   |   |   |   |
| Stockholders' equity                                                                                                                     |   |   |   |   |   |   |   |   |
| Preferred stock - $1.00 par value;                                                                                                       |   |   |   |   |   |   |   |   |
| 10,000,000 shares authorized; none outstanding                                                                                           |   |   | - |   |   |   | - |   |
| Common stock - $0.50 par value; 40,000,000 shares authorized;                                                                            |   |   |   |   |   |   |   |   |
| 2,010,116 and 2,003,866 shares issued;1,950,949 and 1,919,866 shares outstanding as ofDecember 31, 2010 and March 31, 2010, respectively |   |   | 1,005,058 |   |   |   | 1,001,933 |   |
| Additional paid-in capital                                                                                                               |   |   | 5,981,814 |   |   |   | 5,907,899 |   |
| Retained earnings                                                                                                                        |   |   | 5,258,852 |   |   |   | 5,156,138 |   |
| Treasury stock, at cost (59,167 and 84,000 shares as of                                                                                  |   |   |   |   |   |   |   |   |
| December 31, 2010 and March 31, 2010, respectively)                                                                                      |   |   | (302,665 | ) |   |   | (426,617 | ) |
| Total stockholders' equity                                                                                                               |   |   | 11,943,059 |   |   |   | 11,639,353 |   |
|                                                                                                                                     |   | $ | 15,470,707 |   |   | $ | 14,029,575 |   |

----

| Mexco Energy Corporation and Subsidiaries   |   |
|---------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF OPERATIONS       |   |
| (Unaudited)                                 |   |
|                                        |   |
|                                        |   | Three Months Ended |   |   | Nine Months Ended |   |
|                                        |   | December 31 |   |   | December 31 |   |
|                                        |   | 2010 |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
| Operating revenue:                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Oil and gas                                 |   | $ | 752,778 |   |   | $ | 857,035 |   |   | $ | 2,368,778 |   |   | $ | 2,248,789 |   |
| Other                                       |   |   | 3,798 |   |   |   | 8,134 |   |   |   | 12,830 |   |   |   | 20,851 |   |
| Total operating revenues                    |   |   | 756,576 |   |   |   | 865,169 |   |   |   | 2,381,608 |   |   |   | 2,269,640 |   |
|                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses:                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Production                                  |   |   | 200,785 |   |   |   | 269,154 |   |   |   | 822,150 |   |   |   | 779,379 |   |
| Accretion of asset retirement obligation    |   |   | 8,489 |   |   |   | 7,963 |   |   |   | 25,463 |   |   |   | 23,570 |   |
| Depreciation, depletion, and amortization   |   |   | 244,065 |   |   |   | 252,940 |   |   |   | 763,251 |   |   |   | 791,474 |   |
| General and administrative                  |   |   | 235,137 |   |   |   | 198,527 |   |   |   | 682,820 |   |   |   | 628,941 |   |
| Total operating expenses                    |   |   | 688,476 |   |   |   | 728,584 |   |   |   | 2,293,684 |   |   |   | 2,223,364 |   |
|                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating profit                            |   |   | 68,100 |   |   |   | 136,585 |   |   |   | 87,924 |   |   |   | 46,276 |   |
|                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other income (expenses):                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                             |   |   | 10 |   |   |   | 100 |   |   |   | 36 |   |   |   | 328 |   |
| Interest expense                            |   |   | (15,151 | ) |   |   | (8,516 | ) |   |   | (25,347 | ) |   |   | (26,877 | ) |
|                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net other expense                           |   |   | (15,141 | ) |   |   | (8,416 | ) |   |   | (25,311 | ) |   |   | (26,549 | ) |
|                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings before provision for income taxes  |   |   | 52,959 |   |   |   | 128,169 |   |   |   | 62,613 |   |   |   | 19,727 |   |
|                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income tax expense (benefit):               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current                                     |   |   | (59,500 | ) |   |   | 21,988 |   |   |   | (25,502 | ) |   |   | 21,988 |   |
| Deferred                                    |   |   | 85,561 |   |   |   | (60,964 | ) |   |   | (14,599 | ) |   |   | (259,753 | ) |
|                                        |   |   | 26,061 |   |   |   | (38,976 | ) |   |   | (40,101 | ) |   |   | (237,765 | ) |
|                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                  |   | $ | 26,898 |   |   | $ | 167,145 |   |   | $ | 102,714 |   |   | $ | 257,492 |   |
|                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per common share:                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                       |   | $ | 0.01 |   |   | $ | 0.09 |   |   | $ | 0.05 |   |   | $ | 0.14 |   |
| Diluted                                     |   | $ | 0.01 |   |   | $ | 0.09 |   |   | $ | 0.05 |   |   | $ | 0.13 |   |
|                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average common shares outstanding: |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                       |   |   | 1,947,370 |   |   |   | 1,891,866 |   |   |   | 1,934,953 |   |   |   | 1,884,598 |   |
| Diluted                                     |   |   | 1,961,041 |   |   |   | 1,946,076 |   |   |   | 1,951,316 |   |   |   | 1,946,362 |   |

----

| Mexco Energy Corporation and Subsidiaries                 |   |
|-----------------------------------------------------------|--------|
| CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY |   |
| (Unaudited)                                               |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                      |   | Common Stock Par Value |   |   | Treasury Stock |   |   | Additional Paid-In Capital |   |   | Retained Earnings |   |   | Total Stockholders’ Equity |   |
| Balance at March 31, 2010                                 |   | $ | 1,001,933 |   |   | $ | (426,617 | ) |   | $ | 5,907,899 |   |   | $ | 5,156,138 |   |   | $ | 11,639,353 |   |
| Net income                                                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,776 |   |   |   | 5,776 |   |
| Issuance of stock through                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| options exercised                                         |   |   | 1,250 |   |   |   | - |   |   |   | 9,625 |   |   |   | - |   |   |   | 10,875 |   |
| Stock based compensation                                  |   |   | - |   |   |   | - |   |   |   | 3,668 |   |   |   | - |   |   |   | 3,668 |   |
| Balance at June 30, 2010                                  |   | $ | 1,003,183 |   |   | $ | (426,617 | ) |   | $ | 5,921,192 |   |   | $ | 5,161,914 |   |   | $ | 11,659,672 |   |
| Net Income                                                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 70,040 |   |   |   | 70,040 |   |
| Issuance of stock for                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| properties                                                |   |   | - |   |   |   | 136,277 |   |   |   | 28,479 |   |   |   | - |   |   |   | 164,756 |   |
| Excess tax benefits from                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| stock-based compensation                                  |   |   |   |   |   |   |   |   |   |   | 33,998 |   |   |   |   |   |   |   | 33,998 |   |
| Stock based compensation                                  |   |   | - |   |   |   | - |   |   |   | 13,754 |   |   |   | - |   |   |   | 13,754 |   |
| Balance at September 30, 2010                             |   | $ | 1,003,183 |   |   | $ | (290,340 | ) |   | $ | 5,997,423 |   |   | $ | 5,231,954 |   |   | $ | 11,942,220 |   |
| Net income                                                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 26,898 |   |   |   | 26,898 |   |
| Purchase of stock                                         |   |   | - |   |   |   | (12,325 | ) |   |   | - |   |   |   | - |   |   |   | (12,325 | ) |
| Issuance of stock through                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| options exercised                                         |   |   | 1,875 |   |   |   | - |   |   |   | 14,437 |   |   |   | - |   |   |   | 16,312 |   |
| Excess tax benefit from                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| stock-based compensation                                  |   |   | - |   |   |   | - |   |   |   | (59,500 | ) |   |   | - |   |   |   | (59,500 | ) |
| Stock based compensation                                  |   |   | - |   |   |   | - |   |   |   | 29,454 |   |   |   | - |   |   |   | 29,454 |   |
| Balance at December 31, 2010                              |   | $ | 1,005,058 |   |   | $ | (302,665 | ) |   | $ | 5,981,814 |   |   | $ | 5,258,852 |   |   | $ | 11,943,059 |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| SHARE ACTIVITY                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock shares, issued:                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at March 31, 2010                                 |   |   |   |   |   |   | 2,003,866 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issued                                                    |   |   |   |   |   |   | 2,500 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at June 30, 2010                                  |   |   |   |   |   |   | 2,006,366 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issued                                                    |   |   |   |   |   |   | - |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at Sept. 30, 2010                                 |   |   |   |   |   |   | 2,006,366 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issued                                                    |   |   |   |   |   |   | 3,750 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at Dec. 31, 2010                                  |   |   |   |   |   |   | 2,010,116 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock shares, held in treasury:                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at March 31, 2010                                 |   |   |   |   |   |   | (84,000 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
| Acquisitions                                              |   |   |   |   |   |   | - |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at June 30, 2010                                  |   |   |   |   |   |   | (84,000 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
| Exchange for property                                     |   |   |   |   |   |   | 26,833 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at Sept. 30, 2010                                 |   |   |   |   |   |   | (57,167 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
| Acquisitions                                              |   |   |   |   |   |   | (2,000 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at Dec. 31, 2010                                  |   |   |   |   |   |   | (59,167 | ) |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock shares, outstanding                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| at December 31, 2010                                      |   |   |   |   |   |   | 1,950,949 |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| Mexco Energy Corporation and Subsidiaries                            |   |
|----------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF CASH FLOWS                                |   |
| For the Nine Months Ended December 31,                               |   |
| (Unaudited)                                                          |   |
|                                                                 |   |   |   |   |   |   |
|                                                                 |   | 2010 |   |   | 2009 |   |
| Cash flows from operating activities:                                |   |   |   |   |   |   |
| Net income                                                           |   | $ | 102,714 |   |   | $ | 257,492 |   |
| Adjustments to reconcile net income to net cash                      |   |   |   |   |   |   |   |   |
| provided by operating activities:                                    |   |   |   |   |   |   |   |   |
| Deferred income tax expense (benefit)                                |   |   | (14,599 | ) |   |   | (259,753 | ) |
| Excess tax expense (benefit) from share based payment arrangement    |   |   | 25,502 |   |   |   | (21,988 | ) |
| Stock-based compensation                                             |   |   | 46,876 |   |   |   | 21,645 |   |
| Depreciation, depletion and amortization                             |   |   | 763,251 |   |   |   | 791,474 |   |
| Accretion of asset retirement obligations                            |   |   | 25,463 |   |   |   | 23,570 |   |
| Other                                                                |   |   | (17,860 | ) |   |   | (5,849 | ) |
| Changes in assets and liabilities:                                   |   |   |   |   |   |   |   |   |
| Decrease (increase) in accounts receivable                           |   |   | 170,936 |   |   |   | (16,875 | ) |
| (Increase) decrease in prepaid expenses                              |   |   | (66,527 | ) |   |   | 4,196 |   |
| (Decrease) increase in income taxes payable                          |   |   | (25,502 | ) |   |   | 21,988 |   |
| Decrease in accounts payable and accrued expenses                    |   |   | (97,478 | ) |   |   | (49,843 | ) |
| Net cash provided by operating activities                            |   |   | 912,776 |   |   |   | 766,057 |   |
|                                                                 |   |   |   |   |   |   |   |   |
| Cash flows from investing activities:                                |   |   |   |   |   |   |   |   |
| Additions to oil and gas properties                                  |   |   | (1,668,296 | ) |   |   | (621,870 | ) |
| Acquisition of business                                              |   |   | (478,000 | ) |   |   | - |   |
| Additions to other property and equipment                            |   |   | (2,359 | ) |   |   | (8,371 | ) |
| Proceeds from sale of oil and gas properties and equipment           |   |   | 1,653 |   |   |   | 103,674 |   |
| Net cash used in investing activities                                |   |   | (2,147,002 | ) |   |   | (526,567 | ) |
|                                                                 |   |   |   |   |   |   |   |   |
| Cash flows from financing activities:                                |   |   |   |   |   |   |   |   |
| Proceeds from exercise of stock options                              |   |   | 27,187 |   |   |   | 92,792 |   |
| Acquisition of treasury stock                                        |   |   | (12,325 | ) |   |   | - |   |
| Reduction of long-term debt                                          |   |   | (645,000 | ) |   |   | (485,000 | ) |
| Proceeds from long-term debt                                         |   |   | 1,895,000 |   |   |   | 75,000 |   |
| Excess tax (expense) benefit from share based payment arrangement    |   |   | (25,502 | ) |   |   | 21,988 |   |
| Net cash provided by (used in) financing activities                  |   |   | 1,239,360 |   |   |   | (295,220 | ) |
|                                                                 |   |   |   |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                 |   |   | 5,134 |   |   |   | (55,730 | ) |
|                                                                 |   |   |   |   |   |   |   |   |
| Cash and cash equivalents at beginning of period                     |   |   | 160,439 |   |   |   | 223,583 |   |
|                                                                 |   |   |   |   |   |   |   |   |
| Cash and cash equivalents at end of period                           |   | $ | 165,573 |   |   | $ | 167,853 |   |
|                                                                 |   |   |   |   |   |   |   |   |
|                                                                 |   |   |   |   |   |   |   |   |
| Supplemental disclosure of cash flow information:                    |   |   |   |   |   |   |   |   |
| Cash paid for interest                                               |   | $ | 22,896 |   |   | $ | 27,789 |   |
| Income taxes paid                                                    |   | $ | - |   |   | $ | - |   |
|                                                                 |   |   |   |   |   |   |   |   |
| Non-cash investing and financing activities:                         |   |   |   |   |   |   |   |   |
| Asset retirement obligations                                         |   | $ | 8,064 |   |   | $ | 11,689 |   |
| Issuance of common stock in exchange for oil and gas properties      |   | $ | 164,756 |   |   | $ | - |   |
| Acquisition of Southwest Texas Disposal Corporation resulting in the |   |   |   |   |   |   |   |   |
| assumption of liabilities as follows:                                |   |   |   |   |   |   |   |   |
| Fair value of assets                                                 |   | $ | 487,868 |   |   |   | - |   |
| Cash paid                                                            |   |   | (478,000 | ) |   |   | - |   |
| Liabilities assumed                                                  |   | $ | 9,868 |   |   |   | - |   |

----

----

| Proved oil and gas properties        |   | $      | 477,018 |   |
|--------------------------------------|--------|--------|---------|--------|
| Accounts receivable                  |   |   | 10,850  |   |
| Total assets acquired                |   |   | 487,868 |   |
|                                 |   |   |    |   |
| Accounts payable                     |   |   | (7,850  | )      |
| Asset retirement obligations assumed |   |   | (2,018  | )      |
| Net purchase price                   |   | $      | 478,000 |   |

----

| Carrying amount of asset retirement obligations as of April 1, 2010     |   | $      | 536,305 |   |
|-------------------------------------------------------------------------|--------|--------|---------|--------|
| Liabilities incurred                                                    |   |   | 8,064   |   |
| Liabilities settled                                                     |   |   | (11,546 | )      |
| Accretion expense                                                       |   |   | 25,463  |   |
| Carrying amount of asset retirement obligations as of December 31, 2010 |   |   | 558,286 |   |
| Less: Current portion                                                   |   |   | 50,000  |   |
| Non-Current asset retirement obligation                                 |   | $      | 508,286 |   |

| Grant-date fair value    | $5.15  |
|--------------------------|--------|
| Volatility factor        | 82.83% |
| Dividend yield           | -      |
| Risk-free interest rate  | 2.07%  |
| Expected term (in years) | 7      |

----

|                             |   | Number of Shares |    |   | WeightedAverage Exercise Price Per Share |   |   | WeightedAggregate Average Remaining Contract Life in Years |   |   | Intrinsic Value |   |
|----------------------------------|--------|------------------|---------|--------|------------------------------------------|--------|--------|------------------------------------------------------------|--------|--------|-----------------|--------|
| Outstanding at March 31, 2010    |   |             | 107,500 |   |                                     | $      | 5.94   |                                                       |   |   | 2.51            |   |   | $ | 237,088 |   |
| Granted                          |   |             | 42,500  |   |                                     |   | 6.24   |                                                       |   |   |            |   |   |   |   |   |
| Exercised                        |   |             | (6,250  | )      |                                     |   | 4.35   |                                                       |   |   |            |   |   |   |   |   |
| Forfeited or Expired             |   |             | (7,500  | )      |                                     |   | 5.65   |                                                       |   |   |            |   |   |   |   |   |
| Outstanding at December 31, 2010 |   |             | 136,250 |   |                                     | $      | 6.12   |                                                       |   |   | 4.23            |   |   | $ | 207,788 |   |
|                             |   |             |    |   |                                     |   |   |                                                       |   |   |            |   |   |   |   |   |
| Vested at December 31, 2010      |   |             | 90,000  |   |                                     | $      | 6.15   |                                                       |   |   | 1.76            |   |   | $ | 135,313 |   |
| Exercisable at December 31, 2010 |   |             | 90,000  |   |                                     | $      | 6.15   |                                                       |   |   | 1.76            |   |   | $ | 135,313 |   |

----

----

|                                                          |   | Three Months Ended |      |   | Nine Months Ended |   |
|---------------------------------------------------------------|--------|--------------------|-----------|--------|-------------------|--------|
|                                                          |   | December 31        |      |   | December 31       |   |
|                                                          |   | 2010               |      |   | 2009              |   |   | 2010 |   |   | 2009 |   |
| Net income                                                    |   | $                  | 26,898    |   |              | $      | 167,145 |   |   | $ | 102,714 |   |   | $ | 257,492 |   |
|                                                          |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Shares outstanding:                                           |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Weighted avg. common shares outstanding – basic    |   |               | 1,947,370 |   |              |   | 1,891,866 |   |   |   | 1,934,953 |   |   |   | 1,884,598 |   |
| Effect of the assumed exercise of dilutive stock options |   |               | 13,671    |   |              |   | 54,210 |   |   |   | 16,363 |   |   |   | 61,764 |   |
| Weighted avg. common shares outstanding – dilutive |   |               | 1,961,041 |   |              |   | 1,946,076 |   |   |   | 1,951,316 |   |   |   | 1,946,362 |   |
|                                                          |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per common share:                                    |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                         |   | $                  | 0.01      |   |              | $      | 0.09 |   |   | $ | 0.05 |   |   | $ | 0.14 |   |
| Diluted                                                       |   | $                  | 0.01      |   |              | $      | 0.09 |   |   | $ | 0.05 |   |   | $ | 0.13 |   |

----

----

|                        |   | Payments Due In (1): |      |
|-----------------------------|--------|----------------------|-----------|
|                        |   | Total                |      |   | less than 1 year |   |   | 1-3 years |   |   | 3 years |   |
| Contractual obligations:    |   |                 |      |   |   |   |   |   |   |   |   |   |
| Secured bank line of credit |   | $                    | 1,950,000 |   |   | $ | — |   |   | $ | 1,950,000 |   |   | $ | — |   |

| (1)  | Does not include estimated interest of $54,000 less than 1 year and $162,000 1-3 years. |
|-----------|-----------------------------------------------------------------------------------------|

|                    |   | 2010   |    |   | 2009   |   |    | % Difference |   |
|-------------------------|--------|--------|---------|--------|--------|--------|---------|--------------|--------|
| Oil:                    |   |   |    |   |   |   |    |         |   |
| Revenue                 |   | $      | 334,141 |   |   | $      | 324,245 |         |   |   | 3.1 | % |
| Volume (bbls)           |   |   | 4,169   |   |   |   | 4,519   |         |   |   | (7.7 | %) |
| Average Price (per bbl) |   | $      | 80.15   |   |   | $      | 71.76   |         |   |   | 11.7 | % |
|                    |   |   |    |   |   |   |    |         |   |   |   |   |
| Gas:                    |   |   |    |   |   |   |    |         |   |   |   |   |
| Revenue                 |   | $      | 418,637 |   |   | $      | 532,790 |         |   |   | (21.4 | %) |
| Volume (mcf)            |   |   | 115,911 |   |   |   | 136,073 |         |   |   | (14.8 | %) |
| Average Price (per mcf) |   | $      | 3.61    |   |   | $      | 3.92    |         |   |   | (7.9 | %) |

----

|                    |   | 2010   |      |   | 2009   |   |      | % Difference |   |
|-------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------------|--------|
| Oil:                    |   |   |      |   |   |   |      |         |   |
| Revenue                 |   | $      | 987,257   |   |   | $      | 839,184   |         |   |   | 17.6 | % |
| Volume (bbls)           |   |   | 13,154    |   |   |   | 13,229    |         |   |   | (0.6 | %) |
| Average Price (per bbl) |   | $      | 75.05     |   |   | $      | 63.44     |         |   |   | 18.3 | % |
|                    |   |   |      |   |   |   |      |         |   |   |   |   |
| Gas:                    |   |   |      |   |   |   |      |         |   |   |   |   |
| Revenue                 |   | $      | 1,381,521 |   |   | $      | 1,409,604 |         |   |   | (2.0 | %) |
| Volume (mcf)            |   |   | 351,855   |   |   |   | 422,343   |         |   |   | (16.7 | %) |
| Average Price (per mcf) |   | $      | 3.93      |   |   | $      | 3.34      |         |   |   | 17.7 | % |

----

----

|   | 31.1 | Certification of the Chief Executive Officer of Mexco Energy Corporation |
|--------|------|--------------------------------------------------------------------------|

|   | 31.2 | Certification of the Chief Financial Officer of Mexco Energy Corporation |
|--------|------|--------------------------------------------------------------------------|

|   | 32.1 | Certification of the Chief Executive Officer and Chief Financial Officer of Mexco Energy Corporation pursuant to 18 U.S.C. §1350 |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------|

|                     | MEXCO ENERGY CORPORATION                                                                                                                       |
|--------------------------|------------------------------------------------------------------------------------------------------------------------------------------------|
|                     | (Registrant)                                                                                                                                   |
|                     |                                                                                                                                           |
|                     |                                                                                                                                           |
| Dated: February 14, 2011 | /s/ Nicholas C. Taylor                     |
|                     | Nicholas C. Taylor                                                                                                                             |
|                     | President                                                                                                                                      |
|                     |                                                                                                                                           |
|                     |                                                                                                                                           |
| Dated: February 14, 2011 | /s/ Tamala L. McComic                                |
|                     | Tamala L. McComic                                                                                                                              |
|                     | Executive Vice President, Treasurer and Assistant Secretary                                                                                    |