Exhibit 10.1

Liberty Gold Corp.

2415 East Camelback Road – Suite 700

Phoenix, Arizona 85016

(602) 553-1190

December 23, 2011

Precious Metals Exploration, LTD.

Fabriksgaten 7

Gothenbuurg 412 50, Sweden

Re:  Asset Purchase Agreement Termination

Ladies and Gentlemen:

We refer to the Asset Purchase Agreement, dated July 13, 2011(the “Agreement”), between you and us relating to our acquisition of an undivided 75% interest in certain mining concessions totaling 217.49 hectares in Hostotipaquillo, Jalisco, Mexico (the “Concessions”).   We are terminating the Agreement as of the date hereof.  Upon execution of this letter, you shall return to us the certificates for 1,500,000 shares of our common stock that we issued to you pursuant to the Agreement together with stock powers with medallion guarantee.  We shall execute any document you request to surrender any claim we may have in the Concessions.  We shall have no further monetary obligations for any matters relating to the Concessions or the Agreement.  You are not required to refund any amounts we have previously paid.

If the foregoing is acceptable to you, please sign where indicated below and return the common shares to us.

Very truly yours,

Liberty Gold Corp.

By:

/s/ Lynn Harrison

Lynn Harrison, President and CEO  

ACCEPTED AND AGREED TO:

Precious Metals Exploration, LTD.

By:

/s/ Steven Drayton

Steven Drayton, Director