**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

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**FORM 10-QSB/A**

| **(Mark                one)** |   |                                                                                                                           |
|-------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------|
| **x**                         |   | **QUARTERLY                REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT                OF 1934.** |

**For      the fiscal quarter ended September 30, 2006**

**OR**

| **o** |   | **TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES                EXCHANGE ACT OF 1934.** |
|-------|--------|---------------------------------------------------------------------------------------------------------------------------------------|

**For      the transition period      from                                  to**

**Commission      File No. 000-50906**

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**ETERNAL      ENERGY CORP.**

| **Nevada**                                                                                 |   | **20-0237026**                                                    |
|--------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------|
| (State                or Other Jurisdictionof                Incorporation orOrganization) |   | (I.R.S.                EmployerIdentification                No.) |

**2120      West Littleton Blvd., Suite 300**

**Littleton,      Colorado**

**(303)      385-1230**

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| **TITLE                OF CLASS**              |   | **NUMBER                OF SHARES****OUTSTANDING** |
|------------------------------------------------|--------|----------------------------------------------------|
| Common                Stock, $0.001 par value. |   | 42,550,000                                         |

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**PART      I. FINANCIAL INFORMATION**

**Item      3. Controls and Procedures**

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**PART      II OTHER INFORMATION**

**Item      6. Exhibits**

| **Exhibit                Number** |   | **Description                of Document**                                                                                                                                                                                                                                                                                                                                                              |
|-----------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.1                              |   | Letter                Agreement by and between Eternal Energy Corp. and International Frontier                Resources Corporation Relating to Quad 41 and Quad 42 dated January                30,                2006 (Incorporated by reference to Exhibit 10.1 of the Company’s Current                Report on Form 8-K filed on February 3, 2006).                                        |
|                              |   |                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.2                              |   | Amended                and Restated Letter Agreement by and between Eternal Energy Corp.                and                Internatioanl Frontier Resources Corporation Relating to Quad 14                dated                January 30, 2006 (Incorporated by reference to Exhibit 10.2 of the                Company’s Current Report on Form 8-K filed on February 3,                2006). |
|                              |   |                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.3                              |   | Finder’s                Fee Agreement by and between Eternal Energy Corp. and Taverham Company                Ltd. Dated January 30, 2006 (Incorporated by reference to Exhbiit                10.3 of                the Company’s Current Report on Form 8-K filed on February 3,                2006).                                                                                   |
|                              |   |                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.4                              |   | Form                of Subscription Agreement (Incorporated by refernce to Exhibit 10.1                of the                Company’s Current Report on Form 8-K filed on March 8,                2006).                                                                                                                                                                                         |
|                              |   |                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.5                              |   | Form                of Common Stock Purchase Warrant (Incoroprated by reference to Exhibit                10.2 of the Company’s Current Report on Form 8-K filed on March 8,                2006).                                                                                                                                                                                                |
|                              |   |                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.6                              |   | Form                of Registration Rights Agreement (Incorporated by reference to Exhibit                10.3 of the Company’s Current Report on Form 8-K filed on March 8,                2006).                                                                                                                                                                                                |
|                              |   |                                                                                                                                                                                                                                                                                                                                                                                                    |
| 31.1*                             |        | Certification                pursuant to Section 302 of the Sarbanes-Oxley Act                                                                                                                                                                                                                                                                                                                     |
|                              |   |                                                                                                                                                                                                                                                                                                                                                                                                    |
| 32.1*                             |   | Certification                pursuant to Section 906 of the Sarbanes-Oxley                Act                                                                                                                                                                                                                                                                                                      |

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**SIGNATURES**

| ETERNAL                ENERGY CORP. |                                                                                                                |                                               |
|-------------------------------------|---------------------------------------------------------------------------------------------------------------------|----------------------------------------------------|
|                                |                                                                                                                |
| (Registrant)                        |                                                                                                                |
|                                |                                                                                                                |
| January                18, 2007     |                                                                                                                | /s/                Bradley                M. Colby |
|                                | Bradley                M. Colby                                                                                     |
|                                | President,                Chief Executive Officer, Secretary, Treasurer,                and Chief Financial Officer |

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