Liberty Gold Corp.

The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, these condensed financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and such adjustments are of a normal recurring nature. These financial statements should be read in conjunction with the financial statements for the year ended March 31, 2013 and notes thereto and other pertinent information contained in our Form 10-K the Company has filed with the Securities and Exchange Commission (the “SEC”).

The results of operations for the three month period ended June 30 2013 are not necessarily indicative of the results for the full fiscal year ending March 31, 2014.

The Company is a development stage company as defined by ASC 915, Development Stage Entities.  The Company is still devoting substantially all of its efforts on establishing the business and its planned principal operations have not commenced.  All losses accumulated since inception have been considered as part of the Company's development stage activities.

An exploration-state company is an issuer that is engaged in the search for mineral deposits (reserves) and is neither in the development nor production stage.

During the three months ended June 2013, the company recorded $ 68,700 in common stock payable for future issuance of 152,667 common shares for $68,700 in cash.”  As of March 31, 2013, the Company recorded $21,300 in common stock payable for future issuance of 47.333 common shares for $21,300 in cash.  As of this filing, the shares have not been issued. The share stock payable relates to and is in accordance with our equity financing agreement with American Gold Holdings, Ltd. (“AGH”).

On August 22, 2013, the Company returned certain mineral properties known as Mine Group II, ("MGII"), or properties acquired under APAAR2 and consisting of an undivided 100% interest in 2 patented claims and 5 federal claims comprising roughly 134 acres in Mohave County, Arizona.  We returned these properties because we were unable to generate sufficient investor interest to fund the development of the properties.  As a result, our mineral properties have decreased $684,022 and the related debt has decreased $543,302 (See Note 5 – Mineral Properties).  We made payments approximating $150,947 in connection with these properties which will not be recovered:

Net cash used in operating activities for the period ending June 30, 2013 and 2012 was $32,178 and $300,986.  Net cash used in investing activities for the period ending June 30, 2013 and 2012 was $1,037 and $27,265, respectively.  Cash provided from financing activities for the period ending June 30, 2013 and 2012 was $68,700 and $375,000, respectively.