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 March 31, 2010

[ ] TRANISITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
    EXCHANGE ACT OF 1934

            For the transition period from __________ to __________

                         Commission File No. 333-148801


                            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 Number)

      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)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports); and (2) has been subject to such filing
requirements for the past 90 days. Yes [X] No [ ]

Indicate by check mark whether the registrant 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 checkmark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer or a smaller reporting company. See
the definitions of "large accelerated filer," "accelerated filer" and "smaller
reporting company" in Rule 12b-3 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 ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS
                        DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court. Yes [ ] No [ ]

                      APPLICABLE ONLY TO CORPORATE ISSUERS:

As of May 12, 2010, there were 75,900,000 shares of the registrant's $0.001 par
value common stock issued and outstanding.
<PAGE>
                            LIBERTY COAL ENERGY CORP.

                                 FORM 10-Q INDEX

                                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                                                12

Item 3. Quantitative and Qualitative Disclosures About Market Risk           16

Item 4T. Controls and Procedures                                             16

PART II - OTHER INFORMATION

Item 1. Legal Proceedings                                                    16

Item 1A. Risk Factors                                                        16

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds          16

Item 3. Defaults Upon Senior Securities                                      17

Item 4. Submission of Matters to a Vote of Security Holders                  17

Item 5. Other Information                                                    17

Item 6. Exhibits                                                             17

Signature Page                                                               18

                                       2
<PAGE>
                         PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

                            LIBERTY COAL ENERGY CORP.
                          (formerly ESL Teachers Inc.)
                         (An Exploration Stage Company)

                                 BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                   March 31,         September 30,
                                                                     2010                2009
                                                                   ---------           ---------
                                                                  (unaudited)          (audited)
<S>                                                                <C>                 <C>
ASSETS

Current asset
  Cash and bank accounts                                           $ 167,041           $  17,430
  Prepaid expenses                                                        --                 445
                                                                   ---------           ---------

Total current assets                                                 167,041              17,875
                                                                   ---------           ---------

Mineral Properties                                                   365,800                  --
                                                                   ---------           ---------

Total assets                                                       $ 532,841           $  17,875
                                                                   =========           =========

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities

Current liabilities
  Accounts payable and accrued liabilities                         $   4,100           $   7,200
  Due to stockholder                                                   1,058               6,058
                                                                   ---------           ---------

Total liabilities                                                      5,158              13,258
                                                                   ---------           ---------
Stockholders' equity
  Common stock authorized -
   1,500,000,000 common shares with a par value of $0.001
  Common stock issued and outstanding
   75,900,000 and 73,800,000 common shares                            75,900              73,800
  Additional paid-in capital                                         344,586             (10,800)
  Additional paid-in capital - warrants                              183,314                  --
  Deficit accumulated during the exploration stage                   (76,117)            (58,383)
                                                                   ---------           ---------

Total stockholders' equity                                           527,683               4,617
                                                                   ---------           ---------

Total liabilities and stockholders' equity                         $ 532,841           $  17,875
                                                                   =========           =========
</TABLE>


   The accompanying notes are an integral part of these financial statements.

                                       3
<PAGE>
                            LIBERTY COAL ENERGY CORP.
                          (formerly ESL Teachers Inc.)
                         (An Exploration Stage Company)

                      STATEMENTS OF OPERATIONS (unaudited)

<TABLE>
<CAPTION>
                                                                                                   Cumulative Amounts
                                                                                                      From Date of
                                     Three Months    Three Months     Six Months      Six Months    Incorporation on
                                        Ended           Ended           Ended           Ended      August 31, 2007 to
                                       March 31,       March 31,       March 31,       March 31,        March 31,
                                         2010            2009            2010            2009             2010
                                     ------------    ------------    ------------    ------------     ------------
<S>                                  <C>             <C>             <C>             <C>              <C>
REVENUE                              $         --    $         --    $         --    $         --     $         --

OPERATING EXPENSES
  General & Administrative                    187              --           1,201             135            5,307
  Transfer agent                            1,300           3,100           2,895           5,155           15,751
  Legal and Accounting                     13,138           2,202          13,638           4,002           55,059
                                     ------------    ------------    ------------    ------------     ------------

Loss before income taxes                  (14,625)         (5,302)        (17,734)         (9,292)         (76,117)

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

Net loss                             $    (14,625)   $     (5,302)   $    (17,734)   $     (9,292)    $    (76,117)
                                     ============    ============    ============    ============     ============

Basic and diluted loss per
 Common share                                  (1)             (1)             (1)             (1)
                                     ============    ============    ============    ============
Weighted average number of
 common shares outstanding (Note 5)    75,054,444      73,800,000      74,420,330      73,800,000
                                     ============    ============    ============    ============
</TABLE>

----------
(1) less than $0.01


   The accompanying notes are an integral part of these financial statements.

                                       4
<PAGE>
                            LIBERTY COAL ENERGY CORP.
                          (formerly ESL Teachers Inc.)
                         (An Exploration Stage Company)

                  STATEMENT OF STOCKHOLDERS' EQUITY (unaudited)

<TABLE>
<CAPTION>
                                                                                              Deficit
                                                                               Additional   Accumulated
                                           Common Stock          Additional     Paid-in      During the       Total
                                       ---------------------      Paid in       Capital     Exploration    Stockholders'
                                       Shares         Amount       Capital      Warrants        Stage         Equity
                                       ------         ------       -------      --------        -----         ------
<S>                                 <C>           <C>           <C>           <C>            <C>             <C>
Inception, August 31, 2007                   --      $    --      $     --      $     --      $     --       $     --

Initial sale of common stock         45,000,000       45,000       (30,000)           --            --         15,000

Net loss for the year                        --           --            --            --        (4,158)        (4,158)
                                     ----------      -------      --------      --------      --------       --------
Balance September 30, 2007           45,000,000       45,000       (30,000)           --        (4,158)        10,842

Private placement on May 31,
 2008 at $0.05 per share             28,800,000       28,800        19,200            --            --         48,000

Net loss for the period                      --           --            --            --       (31,673)       (31,673)
                                     ----------      -------      --------      --------      --------       --------
September 30, 2008                   73,800,000       73,800       (10,800)           --       (35,831)        27,169

Net loss for the period                      --           --            --            --       (22,552)       (22,552)
                                     ----------      -------      --------      --------      --------       --------
September 30, 2009                   73,800,000       73,800       (10,800)           --       (58,383)         4,617

Private placement on February 1,
 2010 at $0.25 per unit               1,000,000        1,000       157,343        91,657            --        250,000

Stock issued with respect to
 property acquisition                   100,000          100        40,700            --            --         40,800

Private placement on February 11,
 2010 at $0.25 per unit               1,000,000        1,000       157,343        91,657            --        250,000

Net loss for the period                      --           --            --       (17,734)      (17,734)
                                     ----------      -------      --------      --------      --------       --------

March 31, 2010                       75,900,000      $75,900      $344,586      $183,314      $(76,117)      $527,683
                                     ==========      =======      ========      ========      ========       ========
</TABLE>


   The accompanying notes are an integral part of these financial statements.

                                       5
<PAGE>
                            LIBERTY COAL ENERGY CORP.
                          (formerly ESL Teachers Inc.)
                            (An Exploration Company)

                      STATEMENTS OF CASH FLOWS (unaudited)

<TABLE>
<CAPTION>
                                                                                             Cumulative Amounts
                                                                                                From Date of
                                                         Six Months          Six Months       Incorporation on
                                                           Ended               Ended         August 31, 2007 to
                                                          March 31,           March 31,           March 31,
                                                            2010                2009                2010
                                                         ---------           ---------           ---------
<S>                                                      <C>                 <C>                 <C>
CASH FLOWS USED IN OPERATING ACTIVITIES
  Net loss for the period                                $ (17,734)          $  (9,292)          $ (76,117)
  (Increase) Decrease in prepaid expenses                      445              (5,446)                 --
  Increase (Decrease) in accounts payable and
   accrued liabilities                                      (3,100)             (6,077)              4,100
  Increase (Decrease) in due to stockholder                 (5,000)                 --               1,058
                                                         ---------           ---------           ---------

Net cash used in operating activities                      (25,389)            (20,815)            (70,959)
                                                         ---------           ---------           ---------
CASH FLOWS FROM FINANCING ACTIVITIES
  Proceeds from issuance of common stock                   500,000                  --             563,000
                                                         ---------           ---------           ---------

Net cash used in financing activities                      500,000                  --             563,000
                                                         ---------           ---------           ---------
CASH FLOWS USED IN INVESTING ACTIVITY
  Acquisition of mineral properties                       (325,000)                 --            (325,000)
                                                         ---------           ---------           ---------

Change in cash during the period                           149,611             (20,815)            167,041

Cash, beginning of the period                               17,430              40,604                  --
                                                         ---------           ---------           ---------

Cash, end of the period                                  $ 167,041           $  19,789           $ 167,041
                                                         =========           =========           =========

Supplemental disclosure with respect to cash flows:
  Cash paid for income taxes                             $      --           $      --           $      --
                                                         =========           =========           =========
  Cash paid for interest                                 $      --           $      --           $      --
                                                         =========           =========           =========
</TABLE>


   The accompanying notes are an integral part of these financial statements.

                                       6
<PAGE>
                            LIBERTY COAL ENERGY CORP.
                          (formerly ESL Teachers Inc.)
                         (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,  and  was  developing   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

ACCOUNTING BASIS

The accompanying  unaudited interim  financial  statements have been prepared in
accordance with accounting principles generally accepted in the United States of
America and the rules of the Securities  and Exchange  Commission  ("SEC"),  and
should be read in conjunction  with the audited  financial  statements and notes
thereto contained in the Company's annual report filed with the SEC on Form 10-K
as of and for the period ended September 30, 2009. In the opinion of management,
all  adjustments  necessary  in  order  to make  the  financial  statements  not
misleading  have been  reflected  herein.  The results of operations for interim
periods are not  necessarily  indicative  of the results to be expected  for the
full year.

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.

                                       7
<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 usng 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

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  consolidated  financial
statements. 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 consolidated financial statements.

                                       8
<PAGE>
SUBSEQUENT EVENTS

On  July  31,  2009,  the  Company  adopted  changes  issued  by the  FASB  that
establishes  general  standards of accounting  for and disclosure of events that
occur after the balance sheet date but before financial statements are issued or
are  available to be issued.  Specifically,  the guidance  sets forth the period
after the  balance  sheet date during  which  management  of a reporting  entity
should evaluate events or transactions that may occur for potential  recognition
or disclosure  in the financial  statements,  the  circumstances  under which an
entity should recognize events or transactions occurring after the balance sheet
date in its financial statements, and the disclosures that an entity should make
about events or  transactions  that occurred  after the balance sheet date.  The
Company  has  evaluated   subsequent  events  through  the  date  the  financial
statements were issued.

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.

The guidance is effective for the Company's  acquisitions  occurring on or after
February 1, 2009. The Company  applied these new provisions to two  acquisitions
that occurred  during the year,  Rock Coast Media,  Inc. and Pixel Bridge,  Inc.
These  acquisitions  are  more  fully  disclosed  in Note 5 in our  Consolidated
Financial Statements.

NON-CONTROLLING INTERESTS

In December 2007, the FASB issued changes to establish  accounting and reporting
standards for all entities that prepare  consolidated  financial statements that
have outstanding non-controlling interests,  sometimes called minority interest.
These standards require that ownership interests in subsidiaries held by outside
parties be clearly identified, labeled and presented in equity separate from the
parent's  equity;  the amount of net income  attributable  to the parent and the
non-controlling  interest be separately presented on the consolidated  statement
of income;  accounting  standards  applied to changes in a parent's  interest be
consistently   applied;   fair  value  measurement  upon  deconsolidation  of  a
non-controlling  interest  be used;  and the  interests  of the  non-controlling
owners be already  identified and  distinguished.  The adoption of this guidance
had no impact on the Company's consolidated financial statements.

INTANGIBLE ASSETS

In April 2008,  the FASB adopted  changes to require  companies  estimating  the
useful  life of a  recognized  intangible  asset to  consider  their  historical
experience in renewing or extending  similar  arrangements or, in the absence of
historical  experience,  to consider  assumptions that market participants would
use about  renewal or  extension as adjusted for  entity-specific  factors.  The
guidance is effective for fiscal years  beginning after December 15, 2008 and is
to be applied  prospectively  to intangible  assets whether  acquired  before or
after the effective  date. The Company adopted the guidance on February 1, 2009.
The adoption had no impact on the Company's consolidated financial statements.

HIERARCHY OF GENERALLY ACCEPTED ACCOUNTING PRINCIPLES ("GAAP")

In May 2008,  the FASB  issued  changes to identify  the  sources of  accounting
principles  and  the  framework  for  selecting  the  principles   used  in  the
preparation  of  financial  statements  of  nongovernmental  entities  that  are
presented  in  conformity  with GAAP  (the  GAAP  hierarchy).  The  guidance  is
effective 60 days following the SEC's approval of the Public Company  Accounting
Oversight  Board  amendments to AU section 411, THE MEANING OF PRESENT FAIRLY IN
CONFORMITY  WITH  GENERALLY  ACCEPTED  ACCOUNTING   PRINCIPLES.   Management  is
currently  evaluating  the guidance  and  assessing  the impact,  if any, on the
Company's consolidated financial statements.

                                       9
<PAGE>
REVENUE RECOGNITION

In September 2009, the FASB issued new revenue recognition  guidance on multiple
deliverable  arrangements.  It updates  the  existing  multiple-element  revenue
arrangements   guidance  currently  included  under  the  Accounting   Standards
Codification  ("ASC")  605-25.  The  revised  guidance  primarily  provides  two
significant  changes: 1) eliminates the need for objective and reliable evidence
of the fair value for the  undelivered  element in order for a delivered item to
be treated as a separate  unit of  accounting,  and 2)  requires  the use of the
relative selling price method to allocate the entire arrangement  consideration.
In addition,  the guidance also expands the disclosure  requirements for revenue
recognition. ASU 2009-13 will be effective for the first annual reporting period
beginning on or after fiscal 2011, with early adoption  permitted  provided that
the revised  guidance is  retroactively  applied to the beginning of the year of
adoption.  Management  is  currently  evaluating  the  impact of  adopting  this
guidance on the Company's consolidated financial statements.

RECLASSIFICATIONS

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

NOTE 3 - DUE TO STOCKHOLDER

The $1,058 due to a  stockholder  at March 31, 2010 is  unsecured,  non-interest
bearing and has no specific terms of repayment. See Note 6.

NOTE 4 - 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 in exchange for $55,000 within
10 days of the date of the Agreement (paid),  $25,000 within 90 days of the each
of the  next  three  following  anniversaries  of  the  date  of the  Agreement.
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.

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.

                                       10
<PAGE>
WARRANTS

                                                                  Outstanding at
  Issue Date           Number      Price        Expiry Date       March 31, 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

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  $76,117 at March 31, 2010, 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:

                                                    2010                 2009
                                                  --------             --------
Deferred tax asset attributable to:
  Net operating loss carryover                    $ 16,745             $ 12,888
  Valuation allowance                              (16,745)             (12,888)
                                                  --------             --------
    Net deferred tax asset                        $     --             $     --
                                                  ========             ========

NOTE 7 - RELATED PARTY TRANSACTION

As at March 31, 2010,  there is a balance owing to a stockholder  of the Company
in the amount of $1,058.

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 $76,117 as of March 31, 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.

                                       11
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

FORWARD LOOKING STATEMENTS

Except for historical  information,  the following  Management's  Discussion and
Analysis  contains  forward-looking  statements based upon current  expectations
that involve certain risks and uncertainties.  Such  forward-looking  statements
include statements regarding,  among other things, (a) discussions about mineral
resources and mineralized  material,  (b) our projected sales and profitability,
(c) our growth  strategies,  (d)  anticipated  trends in our  industry,  (e) our
future financing plans, (f) our anticipated  needs for working capital,  (g) our
lack of operational  experience and (h) the benefits related to ownership of our
common stock. Forward-looking statements, which involve assumptions and describe
our future plans,  strategies,  and expectations,  are generally identifiable by
use of the words "may," "will," "should,"  "expect,"  "anticipate,"  "estimate,"
"believe,"  "intend,"  or  "project"  or the  negative  of these  words or other
variations  on these  words or  comparable  terminology.  This  information  may
involve known and unknown risks, uncertainties, and other factors that may cause
our actual results, performance, or achievements to be materially different from
the future results,  performance,  or  achievements  expressed or implied by any
forward-looking  statements.  These statements may be found under  "Management's
Discussion and Analysis of Financial  Condition and Results of  Operations"  and
"Description of Business," as well as in this Report generally. Actual events or
results may differ materially from those discussed in forward-looking statements
as a result  of  various  factors,  including,  without  limitation,  the  risks
outlined under "Risk Factors" and matters described in this Report generally. In
light of these  risks  and  uncertainties,  there can be no  assurance  that the
forward-looking  statements  contained  in this  Report  will in fact  occur  as
projected.

In this quarterly  report,  unless otherwise  specified,  all dollar amounts are
expressed in United States  dollars.  All references to "common shares" refer to
the common shares in our capital stock.  As used in this quarterly  report,  the
terms "we," "us," and "our" mean Liberty  Coal Energy  Corp.,  unless  otherwise
indicated.

OVERVIEW

We  are a  precious  metal  mineral  acquisition,  exploration  and  development
company,  formed in Nevada on August 31, 2007. At the time of our incorporation,
we were  incorporated  under  the name  "ESL  Teachers  Inc."  and our  original
business plan was to develop and sell online  employment  services  specifically
for both ESL Teachers and the ESL operations seeking to hire them 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.  that was
formed  solely for the  purpose of  changing  our name.  In addition to the name
change,  we changed our  intended  business  purpose to that of  precious  metal
mineral exploration,  development and production.  Further,  effective March 15,
2010, we effected a 30 for 1 forward  stock split of our issued and  outstanding
common stock.  As a result,  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,  $0.001 par value per share. Unless specifically stated otherwise,
all share amounts  referenced  herein,  will refer to  post-forward  stock split
share amounts.

Our primary business focus is to acquire, explore and develop coal properties in
North  America.  Currently,  we are  developing  two projects.  The first is the
Sheridan County Project in Wyoming, USA, located on a 1,292.47-acre  property in
Sheridan County, Wyoming. We currently have a 100% interest in the property.

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  post-split  shares of 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  previous
payment times 1+ fractional CPI index.  For example,  if CPI is 3% the following
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.

                                       12
<PAGE>
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 plan of operation  for the
quarter  ended  March 31,  2010,  and the factors  that could  affect our future
financial condition and plan 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,
2009 and 2008,  regarding  concerns  about our  ability to  continue  as a going
concern.

Due to this doubt about our ability to continue as a going  concern,  management
is open to new business  opportunities,  which may prove more  profitable to our
shareholders.  Historically,  we have  been  able to raise a  limited  amount of
capital  through  private  placements of our equity stock,  but we are uncertain
about our continued ability to raise funds privately. If we are unable to secure
adequate  capital to continue  our  acquisition  and  exploration  efforts,  our
business may fail and our stockholders may lose some or all of their investment.

RESULTS OF OPERATIONS

THREE MONTHS  ENDED MARCH 31, 2010  COMPARED TO THE THREE MONTHS ENDED MARCH 31,
2009

We had a net loss of $14,625 for the quarter  ended  March 31,  2010,  which was
$9,323 greater than the net loss of $5,302 for the quarter ended March 31, 2009.
The  significant  change in our results  over the two periods is  primarily  the
result of increases in legal fees and  accounting  fees,.  These  increases were
partially offset by decreases in transfer agent fees.

The  following  table  summarizes  key items of  comparison  and  their  related
increase (decrease) for the quarters ended March 31, 2010, and 2009:

                                       Three-Months Ended
                                           January 31,
                                   --------------------------       Increase
                                     2010              2009        (Decrease)
                                   --------          --------      ----------
REVENUES                           $     --          $     --       $     --
                                   ========          ========       ========
EXPENSES:
  General and Administrative -
    Legal  and Accounting Fees       13,138             2,202         10,936
    General and Administrative          187                --            187
    Transfer Agent                    1,300             3,100         (1,800)
                                   --------          --------       --------
Total G & A Expenses               $ 14,625          $  5,302       $  9,323
                                   ========          ========       ========

NET (LOSS)                         $ 14,625          $  5,302       $  9,323
                                   ========          ========       ========

SIX MONTHS ENDED MARCH 31, 2010 COMPARED TO THE SIX MONTHS ENDED MARCH 31, 2009

We had a net loss of $17,734 for the six months ended March 31, 2010,  which was
$8,442  greater  than the net loss of $9,292 for the six months  ended March 31,
2009.  The  significant  change in our results over the two periods is primarily
the  result of  increases  in legal fees and  accounting  fees and  general  and
administrative  fees.  These  increases  were  partially  offset by decreases in
transfer agent fees.

                                       13
<PAGE>
The  following  table  summarizes  key items of  comparison  and  their  related
increase (decrease) for the quarters ended March 31, 2010, and 2009:

                                       Three-Months Ended
                                           January 31,
                                   --------------------------       Increase
                                     2010              2009        (Decrease)
                                   --------          --------      ----------
REVENUES                           $    --           $    --        $    --
                                   =======           =======        =======
EXPENSES:
  General and Administrative -
    Legal  and Accounting Fees      13,638             4,002          9,636
    General and Administrative       1,201               135          1,066
    Transfer Agent                   2,895             5,155         (2,260)
                                   -------           -------        -------
Total G & A Expenses               $17,734           $ 9,292        $ 8,442
                                   =======           =======        =======

NET (LOSS)                         $17,734           $ 9,292        $ 8,442
                                   =======           =======        =======

LIQUIDITY AND CAPITAL RESOURCES

Our balance sheet as of March 31, 2010, reflects assets of $532,841. We had cash
in the amount of $167,041 and a working  capital in the amount of $161,883 as of
March 31, 2010. We have sufficient working capital to enable us to carry out our
stated plan of operation for the next twelve months.

                                                        At             At
                                                     March, 31     September 30,
                                                       2010           2009
                                                     --------       --------
Current assets                                       $167,041       $ 17,875
Current liabilities                                     5,158         13,258
Working capital                                      $161,883       $  4,617

We  anticipate  generating  losses  and,  therefore,  may be unable to  continue
operations in the future.  If we require  additional  capital,  we would have to
issue debt or equity or enter into a strategic arrangement with a third party.

                                                         Six-Months Ended
                                                             March 31,
                                                     ------------------------
                                                       2010           2009
                                                     ---------      ---------
Net Cash (Used in) Operating Activities              $ (25,389)     $ (20,815)
Net Cash (Used in) Investing Activities               (325,000)            --
Net Cash Provided by Financing Activities              500,000             --
                                                     ---------      ---------
NET INCREASE (DECREASE) IN CASH                      $ 149,611      $ (20,815)
                                                     =========      =========

OPERATING ACTIVITIES

Net cash flow used in operating activities during the six-months ended March 31,
2010 was $25,389 - an  increase  of $4,574  from the  $20,815  net cash  outflow
during the six-months ended March 31, 2009.

                                       14
<PAGE>
INVESTING ACTIVITIES

The primary driver of cash used in investing  activities was capital spending in
the acquisition of coal properties.

Cash used in investing activities during the six-months ended March 31, 2010 was
$325,000,  which  was an  increase  of  $325,000  from  the $0 of  cash  used in
investing  activities  during the six-months ended March 31, 2009. This increase
in the cash used in investing activities was primarily due to the acquisition of
the Sheridan County and Campbell projects.

FINANCING ACTIVITIES

Financing  activities  during the  six-months  ended  March 31,  2010,  provided
$500,000  to us, an increase  of  $500,000  from the $0  provided  by  financing
activities during the six-months ended March 31, 2009.

On  February  1,  2010,  we  completed  a private  placement  whereby  we issued
1,000,000 (post-split) units at $0.25 per unit. Each unit consists of one common
share of the Company`s stock and one warrant to purchase an additional  share of
the Company's common stock at $0.50 per share for a period of 24 months.

On  February  11,  2010,  we  completed  a private  placement  whereby we issued
1,000,000 (post-split) units at $0.25 per unit. Each unit consists of one common
share of the Company`s stock and one warrant to purchase an additional  share of
the Company's common stock at $0.50 per share for a period of 24 months.

RECENT ACCOUNTING PRONOUNCEMENTS

For recent accounting pronouncements, please refer to the notes to the financial
statements section of this Quarterly Report.

MINERAL PROPERTIES

A. SHERIDAN VALLEY PROPERTY

On March 2, 2010,  we entered into letter of agreement  for the  acquisition  of
private  mineral  leasehold  rights to certain coal mining  property in Sheridan
County, Wyoming with Rocking Hard Investment,  LLC and Synfuel Technology,  Inc.
(the "Agreement").

In consideration for the mineral property leasehold,  we must pay $55,000 within
10 days of the date of the Agreement,  $25,000 within 90 days of the each of the
next three following  anniversaries of the date of the Agreement.  Additionally,
we must spend  $2,750,000 on development  of the property  within three years of
the date of the Agreement.

As part of the Agreement,  we have also agreed to enter into a royalty Agreement
with Rocking Hard Investment, LLC pursuant to which Rocking Hard would receive a
royalty  of $1.00 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.

B. CAMPBELL PROPERTY

On February 1, 2010 we 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 to Miller and  Associates,
LLC, we 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.

For the  period  beginning  the date of this lease and  continuing  to the third
anniversary date, the Lessor grants the Lessee an option to buy out 3% of the 4%
production  royalty in  increments  of 1% at a purchase  price of  $600,000  per
increment.

PURCHASE OR SALE OF EQUIPMENT

We do not expect to purchase or sell any plant or significant equipment.

REVENUES

We had no revenues for the quarter ended March 31, 2010.

                                       15
<PAGE>
OFF-BALANCE SHEET ARRANGEMENTS

We have no off-balance sheet arrangements.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not Applicable.

ITEM 4T. CONTROLS AND PROCEDURES

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

Our management evaluated,  with the participation of our Chief Executive Officer
and Chief Financial  Officer,  the  effectiveness of the design and operation of
our  disclosure  controls  and  procedures  (as defined in Rules  13a-15(e)  and
15d-15(e) under the Securities Exchange Act of 1934) as of the end of the period
covered by this Quarterly  Report on Form 10-Q.  Based on this  evaluation,  our
Chief  Executive  Officer and our Chief  Financial  Officer  concluded  that our
disclosure  controls and procedures are effective 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,  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 may be involved  from time to time in ordinary  litigation,  negotiation  and
settlement  matters that will not have a material  effect on our  operations  or
finances. We are not aware of any pending or threatened litigation against us or
our officers and directors in their  capacity as such that could have a material
impact on our operations or finances.

ITEM 1A. RISK FACTORS

Not Applicable.

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

On February 1, 2010, we entered into a  subscription  agreement  with a non-U.S.
investor,  who  acquired  1,000,000  (post  split)  units at $0.25  per unit for
aggregate  proceeds of $250,000.  Each unit  consists of one common share of our
common stock and one warrant to purchase an  additional  share of the  company's
common stock at $0.50 per share for a period of 24 months. These securities were
issued  pursuant to an exemption  from  registration  under  Regulation S of the
Securities Act of 1933, as amended.

Also on February 1, 2010 we entered into, and closed, a Mineral and Mining Lease
with Miller and Associates,  LLC. Pursuant to this agreement,  we issued 100,000
(post split) shares of our common stock to Miller and Associates, LLC. The share
issuance  was  made  without  a  prospectus  in  reliance  on  exemptions   from
registration in Section 4(2) of the Securities Act of 1933, as amended.

                                       16
<PAGE>
The above share  issuances were  completed upon the company  completing a 30 for
one forward split of its issued and outstanding shares of common stock.

On February 11, 2010,  we entered into a  subscription  agreement  with a with a
non-U.S.  investor who acquired  1,000,000  (post split) units at $0.25 per unit
for  aggregate  proceeds of $250,000.  Each unit consists of one common share of
the  Company's  stock and one  warrant to purchase  an  additional  share of the
Company's  common  stock at $0.50 per share  for a period  of 24  months.  These
securities  were  issued  pursuant  to  an  exemption  from  registration  under
Regulation S of the Securities Act of 1933, as amended.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

No  matters  have been  submitted  to a vote of  security  holders in the period
covered by this Quarterly Report on Form 10-Q.

ITEM 5. OTHER INFORMATION

Effective April 30, 2010, Maria Guadalupe Flores N. resigned as secretary and as
a director of our company.

Effective  April  30,  2010,  Mauricio  Beltran  resigned  as  president,  chief
executive  officer,  chief financial  officer and treasurer of our company.  Mr.
Beltran will remain as a director of our company.

On April 30, 2010, we appointed  Edwin G. Morrow as president,  chief  executive
officer, chief financial officer and as a director of our company.

ITEM 6. EXHIBITS

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

3.1          Articles   of   Incorporation   (Attached   as  a  exhibit  to  our
             Registration  Statement on Form SB-2 originally  filed with the SEC
             on January 23, 2008 and incorporated herein by reference).
3.2          Bylaws (Attached as a exhibit to our Registration Statement on Form
             S1/A  originally  filed  with  the SEC on  February  27,  2008  and
             incorporated herein by reference).
3.3          Articles of Merger (previously filed as Exhibit 3.01 to our Current
             Report on Form 8-K filed on March 29, 2010.)
3.4          Certificate  of Change  (previously  filed as  Exhibit  10.1 to our
             Current Report on Form 8-K filed on March 29, 2010.)
10.1         Mineral  and Mining  Lease with  Miller  and  Associates  LLC dated
             February 1, 2010.  (previously filed as Exhibit 10.1 to our Current
             Report on Form 8-K filed on February 10, 2010.)
10.2         Letter of Agreement with Rocking Hard  Investment,  LLC and Synfuel
             Technology,  Inc., dated March 2, 2010 (previously filed as Exhibit
             10.1 to our Current Report on Form 8-K filed on March 4, 2010.)
31.1         Certification  by the Chief Executive  Officer  pursuant to Section
             302 of the Sarbanes-Oxley Act of 2002 *
31.2         Certification  by the Chief Financial  Officer  pursuant to Section
             302 of the Sarbanes-Oxley Act of 2002 *
32           Certification  by the Chief  Executive  Officer and Chief Financial
             Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 *

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

                                       17
<PAGE>
                                   SIGNATURES

Pursuant to the  requirements of Section 13 or 15(d) 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: May 13, 2010                    By: /s/ Edwin G. Morrow
                                          --------------------------------------
                                       Name:  Edwin G. Morrow
                                       Title: Chief Executive Officer
                                              (Principal Executive Officer)


                                       18