UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                    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 June 30, 2011
                                       or

[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934

          For the transition period from ____________ to ____________

                        Commission File Number 000-54073


                            LIBERTY COAL ENERGY CORP.
             (Exact name of registrant as specified in its charter)

            Nevada                                               75-3252264
  (State or other jurisdiction                                 (IRS Employer
of incorporation or organization)                            Identification No.)

99 - 18th Street, Suite 3000, Denver, Colorado                     80202
  (Address of principal executive offices)                       (Zip Code)

                                 (303) 997-3161
              (Registrant's telephone number, including area code)

                                       N/A
              (Former name, former address and former fiscal year,
                         if changed since last report)

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. [X] YES [ ] NO

Indicate by check mark whether the registrant has submitted electronically and
posted on its corporate Web site, if any, every Interactive Data File required
to be submitted and posted pursuant to Rule 405 of Regulation S-T (ss.232.405 of
this chapter) during the preceding 12 months (or for such shorter period that
the registrant was required to submit and post such files). [ ] YES [ ] NO

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

Large accelerated filer [ ]                        Accelerated filer [ ]

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

Indicate by check mark whether the  registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act [ ] YES [X] NO

                      APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of the latest practicable date.

58,566,667 common shares issued and outstanding as of August 15, 2011
<PAGE>
                                TABLE OF CONTENTS

PART I - FINANCIAL INFORMATION

   Item 1. Financial Statements                                                3

   Item 2. Management's Discussion and Analysis of Financial Condition and
           Results of Operations                                              11

   Item 3. Quantitative and Qualitative Disclosures About Market Risk         16

   Item 4. Controls and Procedures                                            17

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                                                           18

SIGNATURES                                                                    19

                                       2
<PAGE>
                         PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Our unaudited interim financial  statements for the three and nine month periods
ended  June 30,  2011 form part of this  quarterly  report.  They are  stated in
United States  Dollars  (US$) and are prepared in accordance  with United States
generally accepted accounting principles.



                                       3
<PAGE>
                            Liberty Coal Energy Corp.
                         (An Exploration Stage Company)
                           BALANCE SHEETS (Unaudited)

<TABLE>
<CAPTION>
                                                                            As of                As of
                                                                           June 30,           September 30,
                                                                             2011                 2010
                                                                          ----------           ----------
<S>                                                                       <C>                  <C>
                                     ASSETS

ASSETS
  Cash                                                                    $  385,283           $   59,190
  Prepaid                                                                     17,135                5,291
                                                                          ----------           ----------
TOTAL CURRENT ASSETS                                                         402,418               64,481
                                                                          ----------           ----------

Website, net of amortization                                                   2,111                3,378
Mineral properties                                                           397,985              350,000
                                                                          ----------           ----------
TOTAL OTHER ASSETS                                                           400,096              353,378
                                                                          ----------           ----------

      TOTAL ASSETS                                                        $  802,514           $  417,859
                                                                          ==========           ==========

                       LIABILITIES & STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
  Accounts payable and accrued liabilities                                $   15,120           $   18,590
  Loans payable                                                                   --                   --
                                                                          ----------           ----------
TOTAL LIABILITIES                                                             15,120               18,590
                                                                          ----------           ----------
STOCKHOLDERS' EQUITY
  Common stock, $0.001 par value, (1,500,000) shares authorized;
   58,566,667 and 57,900,000 shares issued and outstanding as
   of June 30, 2011 and September 30, 2010, respectively)                     58,567               57,900
  Additional paid-in capital                                                 624,911              346,786
  Additional paid-in capital - warrants                                      404,522              183,314
  Accumulated deficit during the exploration sage                           (300,606)            (188,731)
                                                                          ----------           ----------
TOTAL STOCKHOLDERS' EQUITY                                                   787,394              399,269
                                                                          ----------           ----------

      TOTAL LIABILITIES & STOCKHOLDERS' EQUITY                            $  802,514           $  417,859
                                                                          ==========           ==========
</TABLE>


                 See Notes to Consolidated Financial Statements

                                       4
<PAGE>
                            LIBERTY COAL ENERGY CORP
                      Statements of Operations (Unaudited)
                         (An Exploration Stage Company)

<TABLE>
<CAPTION>
                                                                                                       Cumulative Amounts
                                                                                                          From Date of
                                                                                                        Incorporation on
                                        For Three Months Ending            For Nine Months Ending       August 31, 2007 -
                                       June 30,         June 30,         June 30,          June 30,         June 30,
                                         2011             2010             2011              2010             2011
                                     ------------     ------------     ------------      ------------     ------------
<S>                                  <C>              <C>              <C>               <C>              <C>
REVENUES
  Revenues                           $         --     $         --     $         --      $         --     $         --
                                     ------------     ------------     ------------      ------------     ------------
NET SALES                                      --               --               --                --               --

COSTS AND EXPENSES
  General & administrative                  6,157            2,141           19,138             3,342           37,540
  Consulting services                      22,500           45,000           52,500            45,000          112,500
  Amortization                                422               --            1,267                --            1,687
  Investor relations                        8,185           13,333           21,381            13,333           43,497
  Transfer agent                               --               --              382             2,895           14,691
  Legal & accounting                        7,690           20,286           13,706            33,924           87,190
                                     ------------     ------------     ------------      ------------     ------------
Loss before income taxes                   44,954           80,760          108,374            98,494          297,105

Provision for income taxes                     --               --               --                --               --
                                     ------------     ------------     ------------      ------------     ------------

LOSS FROM OPERATIONS                      (44,954)         (80,760)        (108,374)          (98,494)        (297,105)

OTHER INCOME & (EXPENSES)
  Interest expense                         (2,111)              --           (3,500)               --           (3,500)
                                     ------------     ------------     ------------      ------------     ------------
TOTAL OTHER INCOME & (EXPENSES)            (2,111)              --           (3,500)               --           (3,500)
                                     ------------     ------------     ------------      ------------     ------------

NET LOSS FROM CONTINUING OPERATIONS       (47,065)         (80,760)        (111,874)          (98,494)        (300,605)
                                     ------------     ------------     ------------      ------------     ------------

NET LOSS                             $    (47,065)    $    (80,760)    $   (111,874)     $    (98,494)    $   (300,605)
                                     ============     ============     ============      ============     ============
BASIC AND DILUTED LOSS PER COMMON
 SHARE                               $         (1)    $         (1)    $         (1)     $         (1)
                                     ------------     ------------     ------------      ------------
WEIGHTED AVERAGE NUMBER OF
 COMMON SHARES OUTSTANDING             58,255,556       75,900,000       58,018,519        74,913,553
                                     ============     ============     ============      ============
</TABLE>


                 See Notes to Consolidated Financial Statements

                                       5
<PAGE>
                            Liberty Coal Energy Corp.
                      Statements of Cash Flows (Unaudited)
                            (an Exploration Company)

<TABLE>
<CAPTION>
                                                                                                        Cumulative Amounts
                                                                                                           From Date of
                                                                     Nine Months        Nine Months      Incorporation on
                                                                        Ended              Ended          August 31, 2007 -
                                                                       June 30,           June 30,           June 30,
                                                                         2011               2010               2011
                                                                      ----------         ----------         ----------
<S>                                                                   <C>                <C>                <C>
CASH FLOWS FROM OPERATING ACTIVITIES
  Net income (loss)                                                   $ (111,874)        $  (17,734)        $ (300,605)
  Amortization                                                             1,267                 --              1,689
  Accrued interest expense                                                    --                 --                 --
  (Increase) decrease in prepaid expenses                                (11,845)               445            (17,136)
  Increase (decrease) in accounts payable and accrued liabilities         (2,566)            (3,100)            10,116
  Increase (decrease) in related party payables                             (904)                --              5,004
  Increase (decrease) in due to stockholder                                   --             (5,000)                --
                                                                      ----------         ----------         ----------
          NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES           (125,922)           (25,389)          (300,932)

CASH FLOWS FROM INVESTING ACTIVITIES
  Investment in website                                                   (3,800)
  Acquisition of mineral properties                                      (47,985)          (325,000)          (372,985)
                                                                      ----------         ----------         ----------
          NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES            (47,985)          (325,000)          (376,785)

CASH FLOWS FROM FINANCING ACTIVITIES
  Stock issued for cash                                                  500,000            500,000          1,063,000
  Payments made on loans payable                                        (100,000)                --           (100,000)
  Proceeds from loans payable                                            100,000                 --            100,000
                                                                      ----------         ----------         ----------
          NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES            500,000            500,000          1,063,000
                                                                      ----------         ----------         ----------

NET INCREASE (DECREASE) IN CASH                                          326,093            149,611            385,283

CASH AT BEGINNING OF PERIOD                                               59,190             17,430                 --
                                                                      ----------         ----------         ----------

CASH AT END OF PERIOD                                                 $  385,283         $  167,041         $  385,283
                                                                      ==========         ==========         ==========

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
  Income taxes paid                                                   $       --         $       --         $       --
                                                                      ==========         ----------         ==========
  Interest paid                                                       $    3,500         $       --         $    3,500
                                                                      ==========         ==========         ==========
NON-CASH ACTIVITIES
  Notes issued to officers                                            $       --         $       --         $       --
  Retirement of debt                                                          --                 --                 --
  Reclassified long-term loan to short-term loan                              --            219,754            219,754
  Stock issued from conversion of convertible notes                           --                 --                 --
  Notes payable for settlement of notes                                       --          2,183,000          2,183,000
  Stock issued for services                                                   --                 --                 --
  Preferred stock issuance for settlement of notes payable                    --          3,104,139          3,104,139
                                                                      ----------         ----------         ----------
Total non-cash activities                                             $       --         $5,506,893         $5,506,893
                                                                      ==========         ==========         ==========
</TABLE>


                 See Notes to Consolidated Financial Statements

                                       6
<PAGE>
                            Liberty Coal Energy Corp.
                         (An Exploration Stage Company)
                          NOTES TO FINANCIAL STATEMENTS


NOTE 1 - NATURE OF OPERATIONS

Liberty Coal Energy Corp. (the "Company") incorporated in the state of Nevada on
August 31,  2007 to develop  business  activities  in  teacher  recruiting.  The
Company  changed its business focus in March,  2010 and now intends to enter the
business of precious  mineral  exploration,  development,  and  production.  The
Company has not yet commenced  significant business operations and is considered
to be in the exploration stage (formerly in the development stage).

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES

MANAGEMENT CERTIFICATION

The financial  statements herein are certified by the officers of the Company to
present fairly, in all material  respects,  the financial  position,  results of
operations  and  cash  flows  for  the  periods  presented  in  conformity  with
accounting  principles  generally  accepted  in the  United  States of  America,
consistently applied.

CASH AND CASH EQUIVALENTS

The Company  considers all highly liquid  investments  with  maturities of three
months or less to be cash equivalents.

FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company's  financial  instruments consist of cash and amounts due to Company
stockholder.

The carrying amount of these financial  instruments  approximates fair value due
either to length of  maturity  or  interest  rates that  approximate  prevailing
market rates unless  otherwise  disclosed in these financial  statements.  It is
management's  opinion that the Company is not exposed to  significant  interest,
currency or credit risks arising from its other  financial  instruments and that
their fair values  approximate  their  carrying  values except where  separately
disclosed.

USE OF ESTIMATES

The preparation of financial  statements in conformity  with generally  accepted
accounting principles of the United States requires management to make estimates
and assumptions  that affect the reported  amounts of assets and liabilities and
disclosure of  contingent  assets and  liabilities  at the date of the financial
statements  and the reported  amounts of revenues and expenses  during the year.
The  more  significant  areas  requiring  the  use of  estimates  include  asset
impairment,  stock-based compensation, and future income tax amounts. Management
bases its estimates on historical experience and on other assumptions considered
to be reasonable  under the  circumstances.  However,  actual results may differ
from the estimates.

MINERAL PROPERTIES

Costs of exploration,  carrying and retaining  unproven mineral lease properties
are expensed as incurred.  Mineral  property  acquisition  costs are capitalized
including  licenses and lease payments.  Although the Company has taken steps to
verify title to mineral properties in which it has an interest, these procedures
do not guarantee the Company's  title.  Such  properties may be subject to prior
agreements or transfers and title may be affected by undetected defects.

Impairment  losses are recorded on mineral  properties  used in operations  when
indicators of impairment are present and the  undiscounted  cash flows estimated
to be generated by those assets are less than the assets' carrying amount.

                                       7
<PAGE>
LOSS PER SHARE

Basic loss per share is calculated  using the weighted  average number of common
shares  outstanding  and the treasury stock method is used to calculate  diluted
earnings  per share.  For the years  presented,  this  calculation  proved to be
anti-dilutive.

DIVIDENDS

The  Company  has not  adopted any policy  regarding  payment of  dividends.  No
dividends have been paid during the period shown.

INCOME TAXES

The Company provides for income taxes using an asset and liability approach.

Deferred tax assets are reduced by a valuation allowance if, based on the weight
of  available  evidence,  it is more  likely  than not  that  some or all of the
deferred  tax assets will not be  realized.  No  provision  for income  taxes is
included in the statement  due to its  immaterial  amount,  net of the allowance
account,   based  on  the   likelihood  of  the  Company  to  utilize  the  loss
carry-forward. See Note 5.

NET LOSS PER COMMON SHARE

Net loss per common share is computed  based on the weighted  average  number of
common shares  outstanding and common stock  equivalents,  if not anti-dilutive.
The Company has not issued any potentially dilutive common shares.

RECENTLY ADOPTED PRONOUNCEMENTS

The Company does not expect the  adoption of other  recently  issued  accounting
pronouncements  to  have a  significant  impact  on  the  Company's  results  of
operations, financial position or cash flow.

RECLASSIFICATIONS

Certain  balances  in the prior years have been  reclassified  to conform to the
current year presentation.

NOTE 3 - MINERAL PROPERTIES

CAMPBELL PROPERTY

On February 1, 2010 the Company  entered into, and closed,  a Mineral and Mining
Lease with Miller and Associates,  LLC. Pursuant to this agreement,  the Company
issued 100,000 (post split) shares of its common stock to Miller and Associates,
LLC and  acquired  a 5 year  lease on  certain  mining  claims  in the  state of
Wyoming.  In addition to the 100,000  (post split)  shares  issued,  the Company
agreed to pay an annual fee of US $20,000,  adjusted for inflation, as well as a
production  royalty of 4% on the gross sales of product  produced by the mineral
claims considered by this agreement.

SHERIDAN PROPERTY

The Company  acquired a mineral  property  leasehold  interest  in exchange  for
$55,000  (paid),  $25,000 within 90 days of the each of the next three following
anniversaries  of the date of the Agreement.  The first of the $25,000  payments
has been paid. Additionally, the Company must spend $2,750,000 on development of
the property within three years of the date of the Agreement.  Additionally, the
lessor would  receive a royalty of $1 per ton of coal produced from the property
and sold with a maximum of  $5,000,000.  The maximum  amount of royalty  must be
paid within 15 years of the date of the Agreement.

                                       8
<PAGE>
NOTE 4 - LOANS PAYABLE

Loans  payable  as of June 30,  2011  and  September  30,  2010  consist  of the
following:

                                      June 30, 2011      September 30, 2010
                                      -------------      ------------------

       Loan at 10% interest              $     --             $     --
                                         --------             --------
         Net deferred tax asset          $     --             $     --
                                         ========             ========

The  company  paid its only loan off with a face  value of  $100,000  and $3,500
interest.

NOTE 5 - CAPITAL STOCK

The company has 1,500,000,000  common shares authorized at a par value of $0.001
per share.

On August 31, 2007, the company issued  1,500,000  common shares to founders for
total proceeds of $15,000.

On May 31, 2008,  the company  completed a private  placement  whereby it issued
960,000 common shares at $0.05 per share for total proceeds of $48,000.

On February 1, 2010, the company completed a private placement whereby it issued
1,000,000  units for $0.25 per unit.  Each unit consists of one common share and
common share purchase  warrant allowing the holder to purchase a common share at
$0.25 per share expiring February 1, 2012.

On  February  1, 2010,  the  company  issued  100,000  common  shares as partial
consideration to acquire the Campbell Property.

On February  11,  2010,  the company  completed a private  placement  whereby it
issued  1,000,000  units for $0.25 per unit.  Each unit  consists  of one common
share and common share purchase warrant allowing the holder to purchase a common
share at $0.25 per share expiring February 1, 2012.

On March 15, 2010,  the Company  increased  its  authorized  common  shares from
50,000,000 shares to 1,500,000,000  shares and effected a 30 for 1 forward stock
split.  All  share  amounts  reflected  in the  financial  statements  have been
adjusted to reflect the results of the stock split.

On March  20,  2010,  the  Company  cancelled  18,000,000  of its  common  stock
outstanding.

On May 11 2011,  the  Company  completed a private  placement  whereby it issued
666,667  units for $0.75 per unit.  Each unit  consists of one  commonshare  and
common share purchase  warrant allowing the holder to purchase a common share at
$0.82 per share expiring April 30, 2013.

WARRANTS

                                                                Outstanding at
Issue Date            Number      Price       Expiry Date     September 30, 2010
----------            ------      -----       -----------     ------------------
February 1, 2010     1,000,000    $0.25    February 1, 2012        1,000,000
February 11, 2010    1,000,000    $0.25    February 11, 2012       1,000,000
May 11, 2011           666,667    $0.82    May 11, 2013              666,667


                                       9
<PAGE>
NOTE 6 - INCOME TAXES

The Company  provides  for income taxes using an asset and  liability  approach.
Deferred  tax assets  and  liabilities  are  recorded  based on the  differences
between the financial  statement and tax bases of assets and liabilities and the
tax rates in effect currently.

Deferred tax assets are reduced by a valuation allowance if, based on the weight
of  available  evidence,  it is more  likely  than not  that  some or all of the
deferred  tax assets  will not be  realized.  In the  Company's  opinion,  it is
uncertain whether they will generate  sufficient taxable income in the future to
fully  utilize the net deferred tax asset.  Accordingly,  a valuation  allowance
equal to the deferred tax asset has been recorded.

The cumulative net operating loss  carry-forward  is  approximately  $300,606 at
June 30, 2011,  and will expire  beginning in the year 2028.The  cumulative  tax
effect at the  expected  rate of 22% of  significant  items  comprising  our net
deferred tax amount is as follows:


                                         June 30, 2011      September 30, 2010
                                         -------------      ------------------
Deferred tax asset attributable to:
  Net operating loss carryover             $ 66,793              $ 41,388
  Valuation allowance                       (66,793)              (41,388)
                                           --------              --------
      Net deferred tax asset               $     --              $     --
                                           ========              ========

NOTE 7 - RELATED PARTY TRANSACTION

As of June 30, 2011,  there is a balance owing to two officers of the Company in
the amount of $7,500  (September 30, 2010 - $5,908).  This amount is included in
accounts payable.

The  officers  and  directors  of the  Company are  involved  in other  business
activities  and  may,  in  the  future,   become   involved  in  other  business
opportunities  that  become  available.  They may face a conflict  in  selecting
between the Company and other business interests. The Company has not formulated
a policy for the resolution of such conflicts.

NOTE 8 - GOING CONCERN

The  accompanying  financial  statements  have been  prepared  assuming that the
company  will  continue as a going  concern.  As  discussed  in the notes to the
financial  statements,  the Company has no established  source of revenue.  This
raises  substantial  doubt  about the  Company's  ability to continue as a going
concern. Without realization of additional capital, it would be unlikely for the
Company to continue as a going concern.  The financial statements do not include
any adjustments that might result from this uncertainty.

The Company's activities to date have been supported by equity financing. It has
sustained  losses in all  previous  reporting  periods with an inception to date
loss of $300,605 as of June 30, 2010.  Management continues to seek funding from
its shareholders  and other qualified  investors to pursue its business plan. In
the  alternative,  the  Company  may be  amenable  to a sale,  merger  or  other
acquisition  in the event such  transaction is deemed by management to be in the
best interests of the shareholders.

                                       10
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

FORWARD-LOOKING STATEMENTS

This quarterly  report contains  forward-looking  statements.  These  statements
relate to future events or our future financial performance.  In some cases, you
can identify forward-looking  statements by terminology such as "may," "should,"
"expects,"  "plans,"   "anticipates,"   "believes,"   "estimates,"   "predicts,"
"potential"  or  "continue"  or the negative of these terms or other  comparable
terminology. These statements are only predictions and involve known and unknown
risks,  uncertainties and other factors, including the risks noted herein in the
section  entitled "Risk  Factors,"  that may cause our or our industry's  actual
results,  levels of  activity,  performance  or  achievements  to be  materially
different  from  any  future  results,   levels  of  activity,   performance  or
achievements expressed or implied by these forward-looking statements.

Although  we believe  that the  expectations  reflected  in the  forward-looking
statements  are  reasonable,  we  cannot  guarantee  future  results,  levels of
activity,  performance or  achievements.  Except as required by applicable  law,
including the securities  laws of the United States,  we do not intend to update
any of the  forward-looking  statements  to conform  these  statements to actual
results.

Our financial  statements  are stated in United  States  Dollars  (US$),  unless
otherwise specified, and are prepared in accordance with United States Generally
Accepted Accounting  Principles.  All references to "common shares" refer to the
common shares in our capital stock.

As used in this quarterly  report,  the terms "we," "us," "our company," and the
"Company" mean Liberty Coal Energy Corp., a Nevada corporation, unless otherwise
indicated.

CORPORATE HISTORY

The address of our  principal  executive  office is 99 18th Street,  Suite 3000,
Denver, Colorado 80202. Our telephone number is 303.997.3161.

Our common stock is quoted on the OTC Bulletin Board under the symbol "LBTG."

We were incorporated on August 31, 2007 as "ESL Teachers Inc." under the laws of
the State of Nevada.  Our original  business plan was to develop and sell online
employment  services  specifically  for both  ESL  Teachers  and ESL  operations
seeking to hire  teachers  worldwide.  On March 15, 2010, we changed our name to
Liberty  Coal Energy Corp.  by way of a merger with our wholly owned  subsidiary
"Liberty  Coal  Energy  Corp."  which was formed  solely for the  purpose of the
change of name.  The  change of name was to better  represent  the new  business
direction  of our  company  to  that  of a coal  exploration,  development,  and
production company.

In addition,  on March 15, 2010,  we effected a 30 for 1 forward  stock split of
our authorized and issued and  outstanding  shares of common stock such that our
authorized capital increased from 50,000,000 shares of common stock,  $0.001 par
value per share to  1,500,000,000  shares of common stock,  par value $0.001 per
share.

OUR CURRENT BUSINESS

Our primary business focus is to acquire, explore and develop coal properties in
North America.  We are currently  exploring two properties,  the Sheridan County
Project in Sheridan County, Wyoming and the Campbell Project in Campbell County,
Wyoming.

Our first project is the Sheridan County Project. In May 2010, we entered into a
letter of agreement for the acquisition of private mineral  leasehold  rights to
certain coal mining  properties  in Sheridan  County,  Wyoming with Rocking Hard
Investments,  LLC and Synfuel Technology,  Inc. Effective May 2, 2011 we entered
into that certain Second Amended Agreement with Rocking Hard Investments, LLC to
revise  certain terms of the  agreements  related to the Sheridan,  Wyoming coal
property.  In consideration for the mineral  leasehold,  we were required to pay
$25,000 by February 13, 2011 and an additional $25,000 on or before February 13,
2012. Additionally, we must spend $500,000 on development of the property within
three years of the date of the agreement. As part of the agreement, Rocking Hard

                                       11
<PAGE>
is to receive  certain  royalties  including  a royalty of $1.00 per ton of coal
produced from the property and sold with a maximum  royalty of  $5,000,000.  The
minimum  royalty  shall be paid  beginning  February  13,  2013 in the amount of
$35,000, $45,000 in 2014, and $55,000 in 2015. Minimum royalties shall remain at
$55,000  annually  until  production   royalties  becomes  due  or  the  Company
surrenders  the  property to Synfuel  Technology,  Inc.  The  maximum  amount of
royalty must be paid within 15 years of the date of the agreement.

The second project is the Campbell Project. On February 1, 2010, we entered into
a lease agreement with Miller and Associates,  LLC to acquire a 100% interest in
the project by issuing  100,000 shares of our common stock, an annual payment of
$20,000  adjusted  annually by the CPI (consumer price index as published by the
US  Government) - according to this formula each year's payment is calculated by
multiplying $20,000 by [1+ fractional CPI index]. For example, if the CPI is 3%,
the payment will be $20,000 x 1.03 or $20,600. In addition,  we agreed to pay on
the  25th  day of each  calendar  month,  for the  right to mine all coal on the
project,  a production  royalty of 4% of the gross sales price of all coal mined
and sold from the project.

We are an exploration stage company with limited operations and no revenues from
our business activities.

The  following is a discussion  and analysis of our results of operation for the
quarter  ended June 30,  2011,  and the  factors  that  could  affect our future
financial condition and results of operation.

GOING CONCERN CONSIDERATION

Our registered  independent auditors included an explanatory  paragraph in their
report on our financial  statements as of and for the years ended  September 30,
2010 and 2009,  regarding  concerns  about our  ability to  continue  as a going
concern.

RESULTS OF OPERATIONS

The following summary of our results of operations should be read in conjunction
with our  financial  statements  for the  quarter  ended June 30, 2011 which are
included herein.

THREE MONTHS ENDED JUNE 30, 2011 COMPARED TO THE THREE MONTHS ENDED JUNE 30,
2010

The following  table  summarizes  key items of  comparison  for the three months
ended June 30, 2011, and 2010:

                                                   Three Months Ended
                                                        June 30,
                                               2011                  2010
                                             --------              --------
Amortization                                 $    422              $     --
General and administrative                      6,157                 2,141
Legal and accounting                            7,690                20,286
Investor Relations                              8,185                13,333
Consulting                                     22,500                45,000
Transfer agent                                     --                    --
Interest Expense                                2,111                    --
                                             --------              --------
Net Loss                                     $ 47,065              $ 80,760
                                             ========              ========

We had a net loss of $47,065  for the  quarter  ended June 30,  2011,  which was
$33,695  less than the net loss of $80,760 for the quarter  ended June 30, 2010.
The  significant  change in our results  over the two periods is  primarily  the
result of management's activities around the Company's projects.

                                       12
<PAGE>
NINE MONTHS ENDED JUNE 30, 2011 COMPARED TO THE NINE MONTHS ENDED JUNE 30, 2010

The following table summarizes key items of comparison for the nine months ended
June 30, 2011, and 2010:

                                                   Nine Months Ended
                                                        June 30,
                                               2011                  2010
                                             --------              --------
Amortization                                 $  1,267              $     --
General and administrative                     19,138                 3,342
Legal and accounting                           13,706                33,924
Investor Relations                             21,381                13,333
Consulting                                     52,500                45,000
Transfer agent                                    382                 2,895
Interest Expense                                3,500                    --
                                             --------              --------
Net Loss                                     $111,874              $ 98,494
                                             ========              ========

We had a net loss of $111,874 for the nine months ended June 30, 2011, which was
$13,380  greater than the net loss of $98,494 for the nine months ended June 30,
2010.  The  significant  change in our results over the two periods is primarily
the result of management's activities around the Company's projects.

PERIOD FROM INCEPTION, AUGUST 31, 2007 TO JUNE 30, 2011

Since  inception,  we have an  accumulated  deficit  of  $300,605.  We expect to
continue to incur losses as a result of continued exploration and development of
our coal mining interests.

LIQUIDITY AND CAPITAL RESOURCES

Our balance sheet as of June 30, 2011, reflects assets of $802,514.  We had cash
in the amount of $385,283  and  working  capital in the amount of $387,298 as of
June 30, 2011.  On May 11, 2011,  the Company sold 666,667  shares of its common
stock ("Shares") to one investor in exchange for $500,000, or $0.75 per share in
accordance  with a subscription  agreement.  In connection  with the sale of the
Shares,  the investor also received  warrants to purchase six hundred  sixty-six
thousand six hundred sixty-seven  (666,667) shares of the Company's common stock
at a purchase price of $0.82 per share ("Warrants"). The Warrants provide for an
expiration period of two years from the date of the investment.

                                            Nine Months            Nine Months
                                               Ended                  Ended
                                              June 30,               June 30,
                                                2011                   2010
                                             ----------             ----------
Net Cash (Used in) Operating Activities      $ (125,922)            $  (25,389)
Net Cash (Used in) Investing Activities         (47,985)              (325,000)
Net Cash Provided by Financing Activities       500,000                500,000
                                             ----------             ----------
Increase (Decrease) in Cash                  $  326,093             $  149,611
                                             ==========             ==========

Our current cash  requirements  are significant  due to planned  exploration and
development  of our current coal mining  property  interests,  and we anticipate
generating losses. In order to execute on our business  strategy,  including the
exploration  and  development  of our current  coal  interest,  we will  require
additional  working  capital,  commensurate  with the  operational  needs of our
planned projects and obligations. Our management believes that we should be able
to raise sufficient amounts of working capital through debt or equity offerings,
as may be required to meet our short-term obligations.  However,  changes in our
operating plans, increased expenses, acquisitions, or other events, may cause us
to seek  additional  equity  or debt  financing  in the  future.  We  anticipate
continued and additional operations on our properties. Accordingly, we expect to
continue to use debt and equity financing to fund operations for the next twelve
months, as we look to expand our asset base and fund exploration and development
of our properties.

                                       13
<PAGE>
There  are no  assurances  that we will be able to raise  the  required  working
capital on terms  favorable,  or that such working  capital will be available on
any terms when needed.  Any failure to secure additional  financing may force us
to modify our business plan. In addition,  we cannot be assured of profitability
or continued operations in the future.

OPERATING ACTIVITIES

Net cash flow used in operating activities during the nine months ended June 30,
2011 was  $125,922,  an increase  of $100,533  from the $25,389 net cash used in
operating activities during the nine months ended June 30, 2010.

INVESTING ACTIVITIES

The primary driver of cash used in investing  activities in previous periods was
capital spending in the acquisition of coal  properties.  Cash used in investing
activities  during  the nine  months  ended  June 30,  2011 was  $47,985,  which
resulted in a decrease  of $277,015  from the  $325,000  cash used in  investing
activities during the nine months ended June 30, 2010.

FINANCING ACTIVITIES

Financing  activities  during  the nine  months  ended June 30,  2011,  provided
$500,000,  which  remained the same from the $500,000 cash proceeds in financing
activities during the nine months ended June 30, 2010.

APPLICATION OF CRITICAL ACCOUNTING POLICIES

MANAGEMENT CERTIFICATION

The financial  statements herein are certified by the officers of the Company to
present fairly, in all material  respects,  the financial  position,  results of
operations  and  cash  flows  for  the  periods  presented  in  conformity  with
accounting  principles  generally  accepted  in the  United  States of  America,
consistently applied.

CASH AND CASH EQUIVALENTS

The Company  considers all highly liquid  investments  with  maturities of three
months or less to be cash equivalents.

FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company's financial instruments consist of cash and amounts due to a Company
stockholder.

The carrying amount of these financial  instruments  approximates fair value due
either to length of  maturity  or  interest  rates that  approximate  prevailing
market rates unless  otherwise  disclosed in these financial  statements.  It is
management's  opinion that the Company is not exposed to  significant  interest,
currency or credit risks arising from its other  financial  instruments and that
their fair values  approximate  their  carrying  values except where  separately
disclosed.

USE OF ESTIMATES

The preparation of financial  statements in conformity  with generally  accepted
accounting principles of the United States requires management to make estimates
and assumptions  that affect the reported  amounts of assets and liabilities and
disclosure of  contingent  assets and  liabilities  at the date of the financial
statements  and the reported  amounts of revenues and expenses  during the year.
The  more  significant  areas  requiring  the  use of  estimates  include  asset
impairment,  stock-based compensation, and future income tax amounts. Management
bases its estimates on historical experience and on other assumptions considered
to be reasonable  under the  circumstances.  However,  actual results may differ
from the estimates.

                                       14
<PAGE>
MINERAL PROPERTIES

Costs of exploration,  carrying and retaining  unproven mineral lease properties
are expensed as incurred.  Mineral  property  acquisition  costs are capitalized
including  licenses and lease payments.  Although the Company has taken steps to
verify title to mineral properties in which it has an interest, these procedures
do not guarantee the Company's  title.  Such  properties may be subject to prior
agreements or transfers and title may be affected by undetected defects.

Impairment  losses are recorded on mineral  properties  used in operations  when
indicators of impairment are present and the  undiscounted  cash flows estimated
to be generated by those assets are less than the assets' carrying amount.

LOSS PER SHARE

Basic loss per share is calculated  using the weighted  average number of common
shares  outstanding  and the treasury stock method is used to calculate  diluted
earnings  per share.  For the years  presented,  this  calculation  proved to be
anti-dilutive.

DIVIDENDS

The  Company  has not  adopted any policy  regarding  payment of  dividends.  No
dividends have been paid during the period shown.

INCOME TAXES

The Company provides for income taxes using an asset and liability approach.

Deferred tax assets are reduced by a valuation allowance if, based on the weight
of  available  evidence,  it is more  likely  than not  that  some or all of the
deferred  tax assets will not be  realized.  No  provision  for income  taxes is
included in the statement  due to its  immaterial  amount,  net of the allowance
account,   based  on  the   likelihood  of  the  Company  to  utilize  the  loss
carry-forward.

NET LOSS PER COMMON SHARE

Net loss per common share is computed  based on the weighted  average  number of
common shares  outstanding and common stock  equivalents,  if not anti-dilutive.
The Company has not issued any potentially dilutive common shares.

RECENT ACCOUNTING PRONOUNCEMENTS

VARIABLE INTEREST ENTITIES

In June 2009,  the FASB issued  changes to require an  enterprise  to perform an
analysis to determine  whether the enterprise's  variable  interest or interests
give it a  controlling  financial  interest in a variable  interest  entity;  to
require  ongoing   reassessments   of  whether  an  enterprise  is  the  primary
beneficiary  of a  variable  interest  entity;  to  eliminate  the  quantitative
approach  previously  required  for  determining  the primary  beneficiary  of a
variable  interest  entity;  to  add an  additional  reconsideration  event  for
determining  whether an entity is a variable interest entity when any changes in
facts and  circumstances  occur such that  holders of the equity  investment  at
risk, as a group,  lose the power from voting rights or similar  rights of those
investments  to direct  the  activities  of the entity  that most  significantly
impact the entity's economic  performance;  and to require enhanced  disclosures
that  will  provide  users  of  financial   statements  with  more   transparent
information about an enterprise's involvement in a variable interest entity. The
guidance  became  effective for the Company on February 1, 2010. The adoption of
the guidance did not have an impact on the Company's financial statements.

                                       15
<PAGE>
CODIFICATION OF GAAP

In June 2009,  the FASB issued  guidance to establish the  Accounting  Standards
Codification  TM  ("Codification")  as the  source of  authoritative  accounting
principles  recognized by the FASB to be applied by nongovernmental  entities in
the  preparation  of financial  statements  in conformity  with GAAP.  Rules and
interpretive  releases of the SEC under authority of federal securities laws are
also sources of authoritative GAAP for SEC registrants.  The FASB will no longer
issue new standards in the form of Statements, FASB Staff Positions, or Emerging
Issues Task Force Abstracts;  instead,  the FASB will issue Accounting Standards
Updates ("ASU").  ASUs will not be authoritative in their own right as they will
only  serve  to  update  the  Codification.  The  issuance  of SFAS  168 and the
Codification does not change GAAP. The guidance became effective for the Company
for the period  ending  October 31,  2009.  The adoption of the guidance did not
have an impact on the Company's financial statements.

BUSINESS COMBINATIONS

The Company  adopted the changes  issued by the FASB that requires the acquiring
entity in a business combination to recognize all (and only) the assets acquired
and liabilities  assumed in the  transaction;  establishes the  acquisition-date
fair value as the measurement  objective for all assets acquired and liabilities
assumed; and requires the acquirer to disclose additional  information needed to
evaluate  and  understand  the  nature  and  financial  effect  of the  business
combination.

The Company also adopted the changes  issued by the FASB which  requires  assets
and liabilities assumed in a business  combination that arise from contingencies
be  recognized on the  acquisition  date at fair value if it is more likely than
not that they meet the  definition of an asset or  liability;  and requires that
contingent  consideration  arrangements of the target assumed by the acquirer be
initially measured at fair value.

RECLASSIFICATIONS

Certain  balances  in the prior years have been  reclassified  to conform to the
current year presentation.

REVENUES

We have not generated revenues since inception.

OFF-BALANCE SHEET ARRANGEMENTS

We have no off-balance sheet arrangements.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As a "smaller  reporting issuer," we are not required to provide the information
required by this Item.

                                       16
<PAGE>
ITEM 4. CONTROLS AND PROCEDURES

MANAGEMENT'S REPORT ON DISCLOSURE CONTROLS AND PROCEDURES

Our management evaluated,  with the participation of our chief executive officer
and  chief  financial  officer  (our  principal  executive  officer,   principal
financial officer and principal  accounting  officer),  the effectiveness of the
design and operation of our disclosure  controls and procedures as of the end of
the period covered by this quarterly report. Based on this evaluation, our chief
executive  officer and our chief  financial  officer  (our  principal  executive
officer, principal financial officer and principal accounting officer) concluded
that our disclosure controls and procedures are effective as of June 30, 2011 to
ensure that  information  we are required to disclose in reports that we file or
submit under the  Securities  Exchange  Act of 1934 (i) is recorded,  processed,
summarized and reported within the time periods  specified in the Securities and
Exchange  Commission's rules and forms, and (ii) is accumulated and communicated
to our management, including our chief executive officer and our chief financial
officer  (our  principal  executive  officer,  principal  financial  officer and
principal  accounting  officer),  as  appropriate,  to  allow  timely  decisions
regarding  required  disclosure.  Our  disclosure  controls and  procedures  are
designed to provide  reasonable  assurance that such  information is accumulated
and  communicated  to our  management.  Our  disclosure  controls and procedures
include   components  of  our  internal   control  over   financial   reporting.
Management's  assessment  of the  effectiveness  of our  internal  control  over
financial  reporting is expressed at the level of reasonable  assurance that the
control  system,  no matter how well  designed  and  operated,  can provide only
reasonable,  but not absolute,  assurance that the control  system's  objectives
will be met.

CHANGES IN INTERNAL CONTROLS OVER FINANCIAL REPORTING

There have been no changes in our internal  controls  over  financial  reporting
that occurred  during the period  covered by this  quarterly  report,  that have
materially affected, or are reasonably likely to materially affect, our internal
control over financial reporting.

                           PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We know of no  material,  existing  or pending  legal  proceedings  against  our
company,  nor are we involved  as a  plaintiff  in any  material  proceeding  or
pending  litigation.  There are no  proceedings  in which any of our  directors,
officers or affiliates, or any registered beneficial shareholder,  is an adverse
party or has any material interest adverse to our interest.

ITEM 1A. RISK FACTORS

Not applicable.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. [REMOVED AND RESERVED]

ITEM 5. OTHER INFORMATION

None.

                                       17
<PAGE>
ITEM 6. EXHIBITS

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

3.1      Articles of Incorporation (Incorporated by reference to our
         Registration Statement on Form SB-2 originally filed on January 23,
         2008).

3.2      By-laws (Incorporated by reference to our Registration Statement on
         Form S1/A filed on February 27, 2008).

3.3      Articles of Merger (Incorporated by reference to our Current Report on
         Form 8-K filed on March 29, 2010).

3.4      Certificate of Change (Incorporated by reference to our Current Report
         on Form 8-K filed on March 29, 2010).

10.1     Form of Subscription Agreement (Incorporated by reference to our
         Quarterly Report on Form 10-Q filed on May 16, 2011)

10.2     Second Amended Agreement by and between Liberty Coal Energy Corp. and
         Rocking Hard Investments, LLC, dated May 2, 2010 (Incorporated by
         reference to our Quarterly Report on Form 10-Q filed on May 16, 2011)

31.1*    Certification of Chief Executive Officer pursuant to Section 302 of the
         Sarbanes-Oxley Act of 2002.

31.2*    Certification of Chief Financial Officer pursuant to Section 302 of the
         Sarbanes-Oxley Act of 2002.

32.1*    Certification of Chief Executive Officer pursuant to Section 906 of the
         Sarbanes-Oxley Act of 2002.

32.2*    Certification of Chief Financial Officer pursuant to Section 906 of the
         Sarbanes-Oxley Act of 2002.

----------
* Filed herewith

                                       18
<PAGE>
                                   SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned, thereunto duly authorized.

                                 LIBERTY COAL ENERGY CORP.


Date: August 15, 2011            /s/ Robert T. Malasek
                                 -----------------------------------------------
                                 ROBERT T. MALASEK
                                 Chief Financial Officer, Secretary and Director
                                 (Principal Financial Officer & Principal
                                 Accounting Officer)

                                       19