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 December 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 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 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

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

57,900,000 common shares issued and outstanding as of February 11, 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                                               14

Item 3.  Quantitative and Qualitative Disclosures About Market Risk          20

Item 4.  Controls and Procedures                                             20

PART II - OTHER INFORMATION

Item 1.  Legal Proceedings                                                   20

Item 1A. Risk Factors                                                        21

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds         21

Item 3.  Defaults Upon Senior Securities                                     21

Item 4.  Submission of Matters to a Vote of Security Holders                 21

Item 5.  Other Information                                                   21

Item 6.  Exhibits                                                            21

SIGNATURES                                                                   22

                                       2
<PAGE>
                         PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Our unaudited interim financial statements for the three month period ended
December 31, 2010 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.
                          (formerly ESL Teachers Inc.)
                         (An Exploration Stage Company)

                                 BALANCE SHEETS

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

Current asset
  Cash and bank accounts                                           $   26,046           $   59,190
  Prepaid expenses                                                      4,374                5,291
                                                                   ----------           ----------
Total current assets                                                   30,420               64,481

Website, net of amortization                                            2,956                3,378
Mineral Properties                                                    350,000              350,000
                                                                   ----------           ----------

Total assets                                                       $  383,376           $  417,859
                                                                   ==========           ==========

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities

Current liabilities
  Accounts payable and accrued liabilities                         $   12,922           $   18,590
                                                                   ----------           ----------
Total liabilities                                                      12,922               18,590
                                                                   ----------           ----------

Stockholders' equity
  Common stock authorized -
   1,500,000,000 common shares with a par value of $0.001
  Common stock issued and outstanding
   57,900,000 common shares                                            57,900               57,900
  Additional paid-in capital                                          346,786              346,786
  Additional paid-in capital - warrants                               183,314              183,314
  Deficit accumulated during the exploration stage                   (217,546)            (188,731)
                                                                   ----------           ----------
Total stockholders' equity                                            370,454              399,269
                                                                   ----------           ----------

Total liabilities and stockholders' equity                         $  383,376           $  417,859
                                                                   ==========           ==========
</TABLE>

   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)

                      STATEMENTS OF OPERATIONS (unaudited)

<TABLE>
<CAPTION>
                                                                                                Cumulative
                                                                                               Amounts From
                                                                                                 Date of
                                                 Three Months           Three Months         Incorporation on
                                                    Ended                  Ended            August 31, 2007 to
                                                 December 31,           December 31,           December 31,
                                                     2010                   2009                   2010
                                                 ------------           ------------           ------------
<S>                                              <C>                    <C>                    <C>
REVENUE                                          $         --           $         --           $         --
                                                 ------------           ------------           ------------
OPERATING EXPENSES
  General & Administrative                                845                  1,013                 19,245
  Consulting                                           15,000                     --                 75,000
  Amortization                                            422                     --                    844
  Investor Relations                                    8,286                     --                 30,402
  Transfer Agent                                           --                  1,595                 14,309
  Legal and Accounting                                  4,282                    500                 77,746
                                                 ------------           ------------           ------------

Loss before income taxes                              (28,815)                (3,108)              (217,546)

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

Net loss                                         $    (28,815)          $     (3,108)          $   (217,546)
                                                 ============           ============           ============

Basic and diluted loss per Common share (1)                (1)                    (1)
                                                 ============           ============
Weighted average number of common shares
 outstanding (Note 5)                              57,900,000             73,800,000
                                                 ============           ============
</TABLE>

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


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

                                       5
<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

Cancellation of stock                (18,000,000)     (18,000)       18,000            --             --            --

Net loss for the period                       --           --            --            --       (130,348)     (130,348)
                                     -----------      -------      --------      --------      ---------      --------
September 30, 2010                    57,900,000       57,900       346,786       183,314       (188,731)      399,269

Net loss for the period                       --           --            --            --        (28,815)      (28,815)
                                     -----------      -------      --------      --------      ---------      --------

December 31, 2010                    57,900,000       $57,900      $346,786      $183,314      $(217,546)     $370,454
                                     ==========       =======      ========      ========      =========      ========
</TABLE>


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

                                       6
<PAGE>
                            LIBERTY COAL ENERGY CORP.
                          (formerly ESL Teachers Inc.)
                            (An Exploration Company)

                      STATEMENTS OF CASH FLOWS (unaudited)

<TABLE>
<CAPTION>
                                                                                                 Cumulative
                                                                                                Amounts From
                                                                                                  Date of
                                                      Three Months         Three Months       Incorporation on
                                                         Ended                Ended          August 31, 2007 to
                                                      December 31,         December 31,         December 31,
                                                          2010                 2009                 2010
                                                       ----------           ----------           ----------
<S>                                                    <C>                  <C>                  <C>
CASH FLOWS USED IN OPERATING ACTIVITIES
  Net loss for the period                              $  (28,815)          $   (3,108)          $ (217,546)
  Adjustment for non-cash items:
    Amortization                                              422                   --                  844

  (Increase) Decrease in prepaid expenses                     917                  445               (4,374)
  Increase (Decrease) in accounts payable and
   accrued liabilities                                     (5,668)              (3,150)              12,922
                                                       ----------           ----------           ----------

Net cash used in operating activities                     (33,144)              (5,813)            (208,154)
                                                       ----------           ----------           ----------
CASH FLOWS FROM FINANCING ACTIVITIES
  Proceeds from issuance of common stock                       --                   --              563,000
                                                       ----------           ----------           ----------

Net cash used in financing activities                          --                   --              563,000
                                                       ----------           ----------           ----------
CASH FLOWS USED IN INVESTING ACTIVITY
  Investment in website                                        --                   --               (3,800)
  Acquisition of mineral properties                            --                   --             (325,000)
                                                       ----------           ----------           ----------

Net cash used in financing activities                          --                   --             (328,800)
                                                       ----------           ----------           ----------

Change in cash during the period                          (33,144)              (5,813)              26,046

Cash, beginning of the period                              59,190               17,430                   --
                                                       ----------           ----------           ----------

Cash, end of the period                                $   26,046           $   11,617           $   26,046
                                                       ==========           ==========           ==========

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.

                                       7
<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")  was  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 coal 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.

                                       8
<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

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.

                                       9
<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.

                                       10
<PAGE>
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.

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 - 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. 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.

                                       11
<PAGE>
NOTE 4 - 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.

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

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  $217,546 at
December 31, 2010, and will expire beginning in the year 2028.

                                       12
<PAGE>
The  cumulative  tax effect at the  expected  rate of 22% of  significant  items
comprising our net deferred tax amount is as follows:

                                               December 31,      September 30,
                                                  2010               2010
                                                --------           --------
   Deferred tax asset attributable to:
     Net operating loss carryover               $ 47,860           $ 41,388
     Valuation allowance                         (47,860)           (41,388)
                                                --------           --------
         Net deferred tax asset                 $     --           $     --
                                                ========           ========

NOTE 7 - RELATED PARTY TRANSACTION

As at December 31, 2010,  there is a balance  owing to an officer of the Company
in the amount of $5,000  (2009 - $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 $217,546 as of December 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.

NOTE 9 - SUBSEQUENT EVENTS

Management has evaluated  subsequent  events through  February 9, 2011, the date
these financial  statements were issued, and has determined it does not have any
material subsequent events to disclose.

                                       13
<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 in the  section
entitled  "Risk  Factors"  in our Annual  Report on Form 10-K for the year ended
September 30, 2010 filed with the Securities and Exchange  Commission on January
11,  2011,  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$) and are
prepared  in  accordance  with  United  States  Generally  Accepted   Accounting
Principles.

In this quarterly  report,  unless otherwise  specified,  all dollar amounts are
expressed in United States Dollars and 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",  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.

Other  than as set out  herein,  we have not been  involved  in any  bankruptcy,
receivership  or similar  proceedings,  nor have we been a party to any material
reclassification,  merger,  consolidation  or purchase or sale of a  significant
amount of assets not in the ordinary course of our business.

OUR CURRENT BUSINESS

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

                                       14
<PAGE>
Our first project is the Sheridan County  Project.  On March 2, 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 Investment,  LLC and Synfuel  Technology,  Inc. In consideration of
for the  mineral  leasehold,  we paid  $50,000  and are  required to pay $25,000
within  90  days  of  the  next  three   anniversary  dates  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  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.

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.

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  December 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,
2010 and 2009,  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 DECEMBER 31, 2010 COMPARED TO THE THREE MONTHS ENDED DECEMBER
31, 2009

The following summary of our results of operations should be read in conjunction
with our financial  statements for the quarter ended December 31, 2010 which are
included herein.

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

                                                      Three Months Ended
                                                         December 31,
                                                   2010                2009
                                                 --------            --------
     Amortization                                $    422            $     --
     General and administrative                       845               1,013
     Legal and accounting                           4,282                 500
     Investor Relations                             8,286                 Nil
     Consulting                                    15,000                 Nil
     Transfer agent                                    --               1,595
                                                 --------            --------
        Net Loss                                 $ 28,815            $  3,108
                                                 ========            ========

                                       15
<PAGE>
We had a net loss of $28,815 for the quarter ended December 31, 2010,  which was
$25,707  greater than the net loss of $3,108 for the quarter ended  December 31,
2009.  The  significant  change in our results over the two periods is primarily
the result of  increased  activity  related to the  acquisition  of our  mineral
property interests.

PERIOD FROM INCEPTION, AUGUST 31, 2007 TO DECEMBER 31, 2010

Since  inception,  we have an  accumulated  deficit  of  $217,546.  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 December 31, 2010,  reflects assets of $383,376.  We had
cash in the amount of $26,046 and a working  capital in the amount of $17,498 as
of December 31, 2010. We have  sufficient  working capital to enable us to carry
out our stated plan of operation for the next twelve months.

                                               Three Months       Three Months
                                                  Ended              Ended
                                               December 31,       December 31,
                                                  2010               2009
                                                --------           --------
Net Cash (Used in) Operating Activities         $(33,144)          $ (5,831)
Net Cash (Used in) Investing Activities               --                Nil
Net Cash Provided by Financing Activities             --                Nil
                                                --------           --------
Increase (Decrease) in Cash                     $(33,144)          $ (5,813)
                                                ========           ========

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.

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  three  months  ended
December 31, 2010 was  $33,144,  an increase of $27,331 from the $5,813 net cash
outflow during the three months ended December 31, 2009.

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 three  months ended  December 31,
2010 was $Nil,  which resulted in no change from the $Nil cash used in investing
activities during the three months ended December 31, 2009.

                                       16
<PAGE>
FINANCING ACTIVITIES

Financing  activities during the three months ended December 31, 2010,  provided
$Nil,  which  resulted  in no  change  from  the  $Nil  cash  used in  financing
activities during the three months ended December 31, 2009.

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 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.

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.

                                       17
<PAGE>
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.

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  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.

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.

                                       18
<PAGE>
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.

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

                                       19
<PAGE>
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.

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.

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 December 31,
2010 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.

                                       20
<PAGE>
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.

ITEM 6. EXHIBITS

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

(3)      (I) ARTICLES OF INCORPORATION; AND (II) BY-LAWS

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)     MATERIAL CONTRACTS

10.1     Mineral and Mining Lease with Miller and  Associates LLC dated February
         1, 2010.  (Incorporated  by reference 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 (Incorporated by reference to our
         Current Report on Form 8-K filed on March 4, 2010).

10.3     Letter  Agreement  with  Rocking  Hard  Investment,   LLC  and  Synfuel
         Technology, Inc., dated March 2, 2010 (Incorporated by reference to our
         Current Report on Form 8-K filed on March 4, 2010).

(31)     RULE 13A-14(A)/15D-14(A) CERTIFICATIONS

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

(32)     SECTION 1350 CERTIFICATIONS

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

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* Filed herewith

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                                   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: February 11, 2011
                                   /s/ Edwin G. Morrow
                                   ---------------------------------------------
                                   EDWIN G. MORROW
                                   President, Chief Executive Officer, Chief
                                   Financial Officer, Secretary, Treasurer and
                                   Director (Principal Executive Officer,
                                   Principal Financial Officer and
                                   Principal Accounting Officer)


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