Document:

EX-10.8

 Exhibit 10.8 

PURCHASE & SETTLEMENT AGREEMENT 

The Parties, as defined below, enter into this Purchase & Settlement Agreement, effective as of August 6, 2018, (“Effective
Date”), upon the terms and conditions stated herein. 
 DEFINITIONS 

“Agreement” means this Settlement Agreement & Mutual Release. 

“Founders” means Founders Oil & Gas, LLC and all of its parents, subsidiaries, affiliates, agents, servants,
employees, attorneys, accountants, partners, predecessors, successors and assigns, and all other persons or entities acting or purporting to act on its behalf. 

“Founders Operating” means Founders Oil & Gas Operating, LLC and all of its parents, subsidiaries, affiliates,
agents, servants, employees, attorneys, accountants, partners, predecessors, successors and assigns, and all other persons or entities acting or purporting to act on its behalf. 

“Hudspeth” means Hudspeth Oil Corporation and all of its parents, subsidiaries, affiliates, agents, servants, employees,
attorneys, accountants, partners, predecessors, successors and assigns, and all other persons or entities acting or purporting to act on its behalf. 

“McCabe Petroleum” means McCabe Petroleum Corporation and all of its parents, subsidiaries, affiliates, agents, servants,
employees, attorneys, accountants, partners, predecessors, successors and assigns, and all other persons or entities acting or purporting to act on its behalf. 

“Torchlight” means Torchlight Energy Resources, Inc. and all of its parents, subsidiaries, affiliates, agents, servants,
employees, attorneys, accountants, partners, predecessors, successors and assigns, and all other persons or entities acting or purporting to act on its behalf. 

“Wolfbone” means Wolfbone Investments, LLC and all of its parents, subsidiaries, affiliates, agents, servants, employees,
attorneys, accountants, partners, predecessors, successors and assigns, and all other persons or entities acting or purporting to act on its behalf. 

“Founders Parties” means Founders and Founders Operating. 

“Partners” means Hudspeth, McCabe Petroleum, Torchlight, and Wolfbone. 

“Project” means the ownership, management, operations of the State of Texas oil and gas leases and University Land Board oil
and gas leases covered by the Farmout Agreement dated September 23, 2015 among Founders, Hudspeth, and Pandora Energy, LP. 

  
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 “All Claims” means past, present and future actions and/or causes of
action, counter-claims, cross-claims, rights, claims, demands, costs, liabilities, damages, losses, expenses and penalties, whether known or unknown, suspected or unsuspected, liquidated or contingent. Under this definition, “All Claims”
includes, but is not limited to, all claims, demands, and causes of action of any nature, whether in contract or in tort or otherwise, or arising under or by virtue of any constitution, statute, regulation, at common law, or in equity, for past,
present, future, known, and unknown personal injuries, property damage, and all other losses or damages of any kind, including but not limited to the following: all actual damages, all exemplary and punitive damages, all penalties of any kind, all
contract damages, all tort damages, loss of consortium, damage to familial relations, ensuing death, loss of inheritance, loss of companionship, loss of society and affection, loss of enjoyment of life, intentional and/or malicious conduct, actual
and/or constructive fraud, statutory and/or common law fraud, class action suit, misrepresentation of any kind or character, libel, slander, negligence, gross negligence, costs, attorney fees, economic loss, and
pre-judgment and post- judgment interests. This definition further includes, but is not limited to, all elements of damages, all remedies, all claims, demands, and causes of action that are now recognized by
law or that may be created or recognized in the future in any manner, including without limitation by constitution, statute, regulation, or judicial decision. 

“Released Claims” means All Claims, existing as of the Effective Date, arising out of or relating in any way, directly or
indirectly to the Project, and All Claims which have been or could have been asserted in the Project or which arise out of or are in any way connected with the Project. This definition does not include, and specifically excludes, any claim that the
Parties may have in the future against the other arising out of any obligation contained in this Agreement. 
 “Vendors”
means any and all of the service and material suppliers used to drill or provide work or services on the University Founders A-25 Well. 

In this Agreement, the singular includes the plural, and vice versa; likewise, the disjunctive includes the conjunctive, and vice versa. 

AGREEMENT 
 For and
in consideration of the mutual promises contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged and agreed to, the Parties agree as follows: 

 

	 	A.	 2018 Payments. 

 

	 	1.	 Contemporaneously with the execution of this Agreement, Hudspeth will pay Founders Six-Hundred-Twenty-Five Thousand and No/100ths United States Dollars ($625,000) by electronic transfer; and 

  
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	 	2.	 Contemporaneously with the execution of this Agreement, Wolfbone will pay Founders Six-Hundred-Twenty-Five Thousand and No/100ths United States Dollars ($625,000) by electronic transfer. 

  

	 	B.	 2019 Payments. 

 

	 	1.	 No later than July 20, 2019, Hudspeth or Torchlight will pay Founders
Six-Hundred-Twenty-Five Thousand and No/100ths United States Dollars ($625,000) by electronic transfer; and 

  

	 	2.	 No later than July 20, 2019, Wolfbone or McCabe Petroleum will pay Founders
Six-Hundred-Twenty-Five Thousand and No/100ths United States Dollars ($625,000) by electronic transfer. 

  

	 	C.	 Default. In the event the 2019 Payments are not made by July 25, 2019, the
Partners agree to pay interest on any unpaid balance owed by the respective party, with such interest being applied to such unpaid balance beginning on July 25, 2019 until paid. The applied interest rate will be 12% per annum.

  

	 	D.	 Assignment of Oil & Gas Leases. Within five business days after the full
performance of the obligations contained in Paragraph A, the Founders Parties will deliver two fully executed originals of the assignment of oil and gas leases attached as Exhibits A and B. The assignments will be delivered to
LeBlanc Law PC, 1111 North Loop West, Suite 705, Houston, Texas 77008. 

  

	 	E.	 Assignment of Claims. Within five business days after the full
performance of the obligations contained in Section A, the Founders Parties will deliver two fully executed originals of the assignment of claims attached as Exhibit C. The assignment of claims will be delivered to LeBlanc Law
PC, 1111 North Loop West, Suite 705, Houston, Texas 77008. 

  

	 	F.	 Assignment of University Lands Development Unit Agreement 2837. Within five business days
after the full performance of the obligations contained in Section A, the Founders Parties will deliver two fully executed originals of an assignment of development unit agreement which is substantially similar to the one attached as Exhibit
D. The assignment of development unit agreement will be delivered to LeBlanc Law PC, 1111 North Loop West, Suite 705, Houston, Texas 77008. The Founders Parties will reasonably cooperate with Partners to obtain the necessary consents
from University Lands and/or the State of Texas. 

  
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	 	G.	 Mutual Releases & Waivers. 

 

	 	1.	 The Founders Parties RELEASE, ACQUIT, and FOREVER DISCHARGE the Partners from all Released Claims.

  

	 	2.	 The Partners RELEASE, ACQUIT, and FOREVER DISCHARGE the Founders Parties from all Released Claims.

  

	 	3.	 THE PARTIES HEREBY WAIVE THEIR RIGHTS AGAINST THE OTHER(S) UNDER THE TEXAS DECEPTIVE TRADE
PRACTICES-CONSUMER PROTECTION ACT, SECTION 17.41 et seq., BUSINESS AND COMMERCE CODE, A LAW THAT GIVES CONSUMERS SPECIAL RIGHTS AND PROTECTIONS, AND ANY SIMILAR LAW IN ANY OTHER STATE TO THE EXTENT SUCH ACT OR SIMILAR LAW WOULD OTHERWISE APPLY.
AFTER CONSULTATION WITH AN ATTORNEY OF THEIR OWN SELECTIONS, THE PARTIES VOLUNTARILY CONSENT TO THIS WAIVER. 

  

	 	H.	 Third Party Lawsuits In the event one or more members of the Partners initiate litigation
in regards to the Project against any third party, including but not limited to vendors, contractors and manufacturers, and if the Founders Parties are then included in any counter claim or action by such third party due to such initiated
litigation, the member(s) of the Partners which initiated said litigation agree to pay all reasonable attorney fees which are incurred by the Founders Parties in connection with such counter claim or action, up to the amount of $250,000.00, with the
Founders Parties being responsible for any such attorney fees over said amount. Provided, however, that the indemnity obligations in this section shall only apply to and cover the claims assigned by Founders Parties (see Exhibit C) to Partners as
part of this settlement. 

  

	 	I.	 Representations and Warranties. 

 

	 	1.	 Founders Parties’ Representations and Warranties. Founders Parties warrant and represent to the
Partners that: 

  

	 	i.	 They are authorized to enter into this Agreement, and each person executing this Agreement, individually or on
behalf of an entity, has the authority to do so; and 

  

	 	ii.	 They are the owner of all of their respective Released Claims; there are no other parties with an interest in
all or any of their respective Released Claim(s); and that none of their respective Released Claims have been assigned to any third-party, nor is any such assignment pending. 

  
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	 	iii.	 As of the Effective Date, to the best of their knowledge they have not entered into any settlement agreement or
waiver of any Released Claims with any of the Vendors. 

  

	 	iv.	 As of the Effective Date, to the best of their knowledge there are no Released Claims or litigation pending
which impair or otherwise adversely affect the Project. 

  

	 	v.	 As of the Effective Date, to the best of their knowledge there are no material liens or encumbrances which
impair or otherwise adversely affect the Project. 

  

	 	vi.	 As of the Effective Date, to the best of their knowledge they are not in default under any contract or
agreement with any of the Vendors or third-parties pertaining to the Project. 

  

	 	vii.	 To the best of their knowledge, during the time Founders Operating served as operator for the University
Founders A-25 Well, until March 1, 2018, all invoices due and owing to any Vendors or third-parties which pertain to services rendered or work performed for the Project have been paid.

  

	 	2.	 Partners’ Representations and Warranties. Partners warrant and represent to Founders Parties that:

  

	 	i.	 They are authorized to enter into this Agreement, and each person executing this Agreement, individually or on
behalf of an entity, has the authority to do so; and 

  

	 	ii.	 They are the owner of all of their respective Released Claims; there are no other parties with an interest in
all or any of their respective Released Claim(s); and that none of their respective Released Claims have been assigned to any third-party, nor is any such assignment pending. 

 

	 	J.	 Non-Reliance. The Parties hereby declare
and represent that in making this Agreement, they rely wholly upon their respective judgment, belief, and knowledge of their respective liabilities and that this Agreement is executed and made without any reliance upon any statement or
representation of any other Party or of any other Party’s representative. 

  

	 	K.	 Non-admission of Liability. It is hereby
agreed that the fact that the Parties have entered into this Agreement does not constitute an admission of any liability as to any conduct or claim related to the Project or which could or should have been asserted in legal proceeding arising out of
the Project by any Party to this Agreement, such liability being expressly denied. 

  
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	 	L.	 Controlling Law. The Parties agree that this Agreement shall
be governed, construed, and applied in accordance with the laws of the State of Texas applicable to contracts between Texas residents that are to be wholly performed in Texas, without regard to choice of law or conflicts of law principles of Texas
or any other jurisdiction. 

  

	 	M.	 Forum Selection Clause & Attorney Fees. The
Parties agree that all disputes arising under this Agreement shall be brought solely in the Judicial District Court of Harris County, Texas. A party who prevails in defending or prosecuting any legal proceeding related to this Agreement is entitled
to recover its reasonable attorney’s fees and all costs of such proceeding. 

  

	 	N.	 Entire Agreement. This Agreement constitutes the entire, final
agreement of the Parties on all matters related in any way to the Project and the Released Claims, and it fully supersedes and replaces any and all prior agreements or understandings, written or oral, between or among the Parties related to the
Project in any way. 

  

	 	O.	 Multiple Counterparts. This Agreement may be executed in multiple counterparts by the
undersigned and all such counterparts so executed shall together be deemed to constitute one final agreement, as if one document had been signed by all parties hereto; and each such counterpart shall be deemed to be an original, binding the Party
subscribed thereto, and multiple signature pages (including faxes or other electronic delivery of signature pages) affixed to a single copy of this Agreement shall be deemed to be a fully executed original Agreement. It shall be sufficient in making
proof of this Agreement to produce or account for a facsimile or PDF copy of an executed counterpart of this Agreement. 

  

	 	P.	 Fees & Costs. It is further agreed and
understood that except as set forth in this Agreement, each Party has no claim against the other for any costs or fees it may have incurred, and that each Party shall pay its own taxable costs, expenses of litigation and legal fees. For the
avoidance of doubt, this section does not apply to any legal proceeding for the enforcement of this Agreement. 

  

	 	Q.	 Joint Drafting. The Parties agree that this Agreement was drafted jointly and that
this Agreement shall not be construed against any Party because of a Party’s involvement in drafting this Agreement. 

  

	 	R.	 Non-Waiver. No exercise or failure to
exercise or delay by any Party in exercising any right or remedy under this Agreement shall constitute a waiver by such Party of such right or remedy in any other instance or any other right or remedy. 

  
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	 	S.	 Amendment & Modification. Any amendment or
modification to this Agreement must be in writing and executed by the Parties. 

  

	 	T.	 No Assignments. No obligation or right arising under this
Agreement may be assigned or delegated by any Party without the express written consent of the other Parties. 

  

	 	U.	 Future Documents. The Parties shall perform any and all acts and execute and
deliver any and all documents that may be or become necessary and proper to give effect to and carry out the terms hereof. 

  

	 	V.	 No Third-Party Beneficiary. Any agreement to perform any obligations herein
contained, express or implied, shall be only for the benefit of the Parties and their respective heirs, successors, executors, administrators, assigns and legal representatives, and such agreements and obligations shall not inure to the benefit of
the obligees of any indebtedness of any other party, whatsoever, it being the intention of the Parties that no one shall be deemed to be a third-party beneficiary of this Agreement. 

 

	 	W.	 Binding Effect. The Parties may plead this Agreement in an
action, suit, or other proceeding, for mandatory injunction or otherwise, to enforce the terms of this Agreement or the Agreed Judgment. The Parties may also plead this Agreement as a full and complete defense to, and may use this Agreement as the
basis for, an injunction against any action, suit or other proceeding which may be instituted, prosecuted or attempted by the other Party, or by the other Party’s respective representatives, agents, executors, administrators, decedents,
trustees, beneficiaries, successors, heirs, attorneys and assigns, in contravention or breach of this Agreement. 

  

	 	X.	 Severability. Each part of this Agreement is intended to be severable. If any term,
covenant, condition or provision violates any applicable law or is declared illegal, invalid or unenforceable, in whole or in part, by a court of last resort, such provision shall be enforced to the greatest extent permitted by law, and such a
declaration shall not affect the legality, validity or enforceability of the remaining parts of this Agreement, all of which shall remain in full force and effect. 

 

	 	Y.	 Review by Counsel. The Parties have had sufficient opportunity to read this
Agreement and to consult with legal counsel of their choosing regarding the meaning and effect of this Agreement and its rights and liabilities under it. Accordingly, each Party and signatory to this Agreement has entered into it freely, voluntarily
and without duress. 

  

	 	Z.	 Survival of Representations and Warranties. For a period of two years from the
Effective Date, the representations and warranties provided for in Section I of this Agreement shall survive the close of the assignments described in Sections D and E and shall be deemed covenants running with the lands associated with the Project,
binding on the Founders Parties and the Partners, but not their respective heirs, successors and assigns. 

  
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	 	AA.	 Public Announcements. Except for the filing of record the assignments of oil and gas
leases attached in Exhibits A and B, the press release attached as Exhibit E. and except as required by law or regulation, neither the Founders Parties or the Partners shall issue any news release, public announcement, or other
form of publicity concerning this Agreement, or the transactions contemplated by it, without obtaining the prior written approval of the other, which approval will not be unreasonably withheld or delayed. 

INTENTIONALLY BLANK—SIGNATURE PAGES FOLLOW 

  
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	AGREED AND EXECUTED as of the Effective Date:
		
	Founders Oil & Gas, LLC	 	Founders Oil & Gas Operating, LLC
				
	By:	 	 /s/ Paten Morrow
	 	By:	 	 /s/ Paten Morrow

		 	Paten Morrow	 		 	Paten Morrow
		 	President	 		 	President
		
	Hudspeth Oil Corporation	 	Torchlight Energy Resources, Inc.
				
	By:	 	 /s/ John Brda
	 	By:	 	 /s/ John Brda

		 	John Brda	 		 	John Brda
		 	CEO	 		 	CEO
		
	Wolfbone Investments, LLC	 	McCabe Petroleum Corporation
				
	By:	 	 /s/ Greg McCabe
	 	By:	 	 /s/ Greg McCabe

		 	Greg McCabe	 		 	Greg McCabe
		 	CEO	 		 	CEO

  
 9EX-10.9

 Exhibit 10.9 

PURCHASE AGREEMENT 

This Purchase Agreement (“Agreement”) is made and entered into this 4th day of April 2016, by and among McCabe Petroleum
Corporation, a Texas corporation (“MPC”), Torchlight Energy Resources, Inc., a Nevada corporation (“TRCH”), and Torchlight Energy, Inc., a Nevada corporation (“TEI” or “Purchaser”). MPC and TEI
are sometimes hereinafter collectively referred to as the “Parties.” 
 WHEREAS, MPC owns certain beneficial rights in
leasehold estate of approximately 12,000 gross acres located in Sterling, Tom Green and Irion Counties, Texas, (the “Oil and Gas Leases”). Such Interest was created by that certain Farmout Agreement (the “Farmout
Agreement”) between Oxy USA Inc. (“Farmor”) and Imperial Exploration, LLC (“Imperial”), dated effective March 21, 2016. The Oil and Gas Leases and lands that such leases cover are more particularly described in the
Farmout Agreement; 
 WHEREAS, MPC desires to transfer and convey a 2/3rds of 8/8ths undivided interest in its rights in the Oil and Gas
Leases and Farmout Agreement (“Subject Interest”) to TEI. Additionally, MPC desires to create an area of mutual interest (“AMI”) with TEI as set forth in the AMI attached hereto as Exhibit “A”; 

WHEREAS, TEI is a wholly owned subsidiary of TRCH; and 

WHEREAS, the Purchaser desire to purchase the oil and gas rights from MPC. 

NOW, THEREFORE, in consideration of the premises, the mutual covenants and agreements and the respective representations and warranties
herein contained, and on the terms and subject to the conditions herein set forth, the parties hereto, intending to be legally bound, hereby agree as follows: 

ARTICLE I 
 PURCHASE
AND SALE OF THE OIL AND GAS LEASES 
 Section 1.1 Sale of the Oil and Gas Leases. Subject to the terms and conditions
set forth in this Agreement, MPC hereby sells, transfers, conveys and delivers to TEI the Subject Interest. The Oil and Gas Leases represent a 75% net revenue interest and are subject to a 25% royalty interest. In the event that the Oil and Gas
Leases cover less than a 75% net revenue interest, Purchaser’s interest in the Oil and Gas Leases shall be proportionately reduced and MPC shall return to TEI or TRCH the same proportion of the warrants received through this Agreement. The Oil
and Gas Leases will be subject to a retention by the MPC of a 25% Back-In After Payout to the 8/8ths interest as defined below. The Farmout Agreement from Oxy attached as Exhibit “B” provides for a
5% Project Back-In After Payout on the Farmout Agreement acreage only; it does not provide for a Back-In on any other acreage within the AMI. In the event the OXY back-in occurs before MPC Back-In event, then Purchaser will be proportionately reduced by the 5% working interest given to OXY. The reduced income will be accounted for in
the project payout accounting for MPC back-in. Once MPC back-in occurs, the 5% OXY back-in will be deducted from the 25% MPC back-in, leaving MPC with 20% of the Farmout acreage and 25% of any additional acreage within the AMI. In the event the OXY back-in occurs after MPC Back-In, the OXY back-in will immediately be deducted from the 25% owned by MPC as described above. 

  
 Purchase Agreement - Page
1 

 Section 1.2 Purchase Price. As consideration for the purchase of the Oil and Gas
Leases, TEI shall pay to MPC a total aggregate consideration in the form of a five-year warrant (the “Warrant”) to purchase 1,500,000 shares of common stock, par value $.001 per share, of Torchlight Energy Resources, Inc. at a
purchase price of $1.00 per share (the “Warrant Shares”). The Warrant provides that in the event an initial well is not drilled on the Oil and Gas Leases on or before July 10, 2016, that (i) if as of July 10, 2016 MPC
has exercised no portion of the Warrant, the number of Warrant Shares that MPC will be able to acquire will be reduced to 500,000, (ii) if as of July 10, 2016 MPC has exercised a portion of the Warrant in an amount less than 500,000 Warrant
Shares, the number of Warrant Shares that MPC will be able to acquire will be reduced to the difference between 500,000 and the number of Warrant Shares for which the Warrant has already been exercised, and (iii) if as of July 10, 2016 MPC
has exercised a portion of the Warrant in an amount more than 500,000 Warrant Shares, the number of Warrant Shares that MPC will be able to acquire will be reduced to zero. 

ARTICLE II 

REPRESENTATIONS AND WARRANTIES 

OF MPC 
 MPC hereby
represents and warrants to Purchaser and TRCH as follows: 
 Section 2.1 Organization. MPC is a Texas corporation, duly
organized and validly existing and in good standing under the laws of the state of Texas. 
 Section 2.2 Authorization. All
action on the part of MPC necessary for the authorization, execution, delivery and performance of this Agreement and all documents related to consummate the transactions contemplated herein have been taken by MPC. MPC has the requisite power and
authority to execute and deliver this Agreement and to perform its obligations hereunder and to consummate the transactions contemplated hereby. This Agreement, when duly executed and delivered in accordance with its terms, will constitute a valid
and binding obligation of MPC, enforceable against it in accordance with its terms, except as may be limited by bankruptcy, insolvency, reorganization, and other similar laws of general application relating to or affecting creditors’ rights and
to general equitable principles. 
 Section 2.3 Ownership. MPC represents and warrants to Purchaser that (a) it owns all of
the Subject Interest in the Oil and Gas Leases free and clear of any liens, claims, equities, charges, options, rights of first refusal, or encumbrances; (b) it has not assigned any of the Subject Interest in the Oil and Gas Leases to any third
party, nor is any such assignment pending; (c) it has the unrestricted right and power to transfer, convey and deliver full ownership of the Subject Interest in the Oil and Gas Leases without the consent or agreement of any other person and
without any designation, declaration or filing with any governmental authority; and (d) upon the transfer of the Subject Interest in the Oil and Gas Leases to Purchaser as contemplated herein, Purchaser will receive good and valid title thereto
to such Subject Interest, free and clear of any liens, claims, equities, charges, options, rights of first refusal, encumbrances or other restrictions. 

Section 2.4 No Transfer. MPC has not transferred, sold, assigned conveyed, encumbered, pledged or hypothecated any rights, title
or interest in or to the Subject Interest in the Oil and Gas Leases. 

  
 Purchase Agreement - Page
2 

 Section 2.5 Validity of Leases. The leases included in the Oil and Gas
Leases are valid, in effect, and have not lapsed or reverted to the lessor(s). 
 Section 2.6 Pending Claims. There is no claim,
suit, arbitration, investigation, action, litigation or other proceeding, whether judicial, administrative or otherwise, now pending or, to the MPC’s knowledge, contemplated or threatened against MPC or the Subject Interest in the Oil and Gas
Leases before any court, arbitration, administrative or regulatory body or any governmental agency which may result in any judgment, order, award, decree, liability or other determination which will or could reasonably be expected to have any
material effect upon the Oil and Gas Leases. No litigation is pending, or, to MPC’s knowledge, threatened against MPC or the Subject Interest in the Oil and Gas Leases which seeks to restrain or enjoin the execution and delivery of this
Agreement or any of the documents referred to herein or the consummation of any of the transactions contemplated thereby or hereby. 

Section 2.7 Access to Information. MPC hereby confirms and represents that it (a) has access to and has reviewed all current
information about the TEI filed with the Securities and Exchange Commission (the “SEC”) (which filings can be accessed by going to www.sec.gov/edgar/searchedgar/companysearch.html, typing “Torchlight Energy Resources” in
the “Company name” field, and clicking the “Search” button) (collectively, the “SEC Reports”); (b) has been afforded the opportunity to ask questions of and receive answers from representatives of TEI concerning
the business and financial condition, properties, operations and prospects of the TEI and all such questions have been answered to the full satisfaction of MPC; (c) has such knowledge and experience in financial and business matters so as to be
capable of evaluating the relative merits and risks of the transactions contemplated hereby; (d) has had an opportunity to engage and is represented by an attorney of his choice; (e) has had an opportunity to negotiate the terms and
conditions of this Agreement; (f) has been given adequate time to evaluate the merits and risks of the transactions contemplated hereby; and (g) has been provided with and given an opportunity to review all current information about TEI.

 Section 2.8 Purchase for Investment – Accredited Investor. MPC is acquiring the Warrant for its own account, for
investment purposes only and not with view to any public resale or other distribution thereof. MPC represents and warrants that it is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D of the Act. 

Section 2.9 Acquisition of Warrant for Investment. MPC understands that the issuance of the Warrant (as referenced in
Section 1.2 herein) will not have been registered under the Securities Act of 1933, as amended (the “Act”), or any state securities acts, and accordingly, are restricted securities, and MPC represents and warrants to TEI that
the present intention of MPC is to receive and hold the Warrant for investment only and not with a view to the distribution or resale thereof. Additionally, MPC understands that any sale of the Warrant or any of the Warrant Shares underlying the
Warrant, under current law, will require either (a) the registration of such security under the Act and applicable state securities acts; (b) compliance with Rule 144 of the Act; or (c) the availability of an exemption from the
registration requirements of the Act and applicable state securities acts. 
 To assist in implementing the above provisions, MPC hereby
consents to the placement of the legend, or a substantially similar legend, set forth below, on all certificates representing ownership of the Warrant or any Warrant Shares underlying the Warrant acquired hereby until the securities have been sold,
transferred, or otherwise disposed of, pursuant to the requirements hereof. The legend shall read substantially as follows: 

  
 Purchase Agreement - Page
3 

 “THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR ANY APPLICABLE STATE SECURITIES ACTS. THESE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT, ARE RESTRICTED AS TO TRANSFERABILITY, AND MAY NOT BE SOLD, HYPOTHECATED, OR OTHERWISE TRANSFERRED WITHOUT COMPLIANCE WITH THE REGISTRATION
AND QUALIFICATION PROVISIONS OF APPLICABLE FEDERAL AND STATE SECURITIES LAWS OR APPLICABLE EXEMPTIONS THEREFROM.” 
 Section 2.10
Farmout Agreement. The Farmout Agreement is valid and in existence. 
 Section 2.11 Breach of Representation or Warranty.
If any of these representation and warranties are found to be false or if MPC breaches this Agreement, MPC’s total liability for such false representations or warranties or breach shall be capped at the total compensation received under this
Agreement (the 1.5MM warrants, any proceeds received therefrom, and any cash consideration received by MPC). 
 ARTICLE III 

REPRESENTATIONS AND WARRANTIES 

OF TEI AND TRCH 
 TEI and
TRCH hereby represent and warrant to MPC as follows: 
 Section 3.1 Organization. (a) TEI is a corporation duly
organized, validly existing and in good standing under the laws of the state of Nevada, and (b) TRCH is a corporation duly organized, validly existing and in good standing under the laws of the state of Nevada. 

Section 3.2 Authorization. All action on the part of TEI and TRCH necessary for the authorization, execution, delivery and
performance of this Agreement and all documents related to consummate the transactions contemplated herein has been taken by TEI and TRCH. TEI has the requisite power and authority to execute and deliver this Agreement and to perform its obligations
hereunder and to consummate the transactions contemplated hereby. This Agreement, when duly executed and delivered in accordance with its terms, will constitute a valid and binding obligation of TEI and TRCH, enforceable against TEI and TRCH in
accordance with its terms, except as may be limited by bankruptcy, insolvency, reorganization, and other similar laws of general application relating to or affecting creditors’ rights and to general equitable principles. 

Section 3.3 Pending Claims. No litigation is pending, or, to TEI’s or TRCH’s knowledge, threatened against the
TEI or TRCH which seeks to restrain or enjoin the execution and delivery of this Agreement or any of the documents referred to herein or the consummation of any of the transactions contemplated thereby or hereby. 

  
 Purchase Agreement - Page
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 ARTICLE IV 

COVENANTS OF MPC AND PURCHASERS 

Section 4.1 Participation Agreement. The Parties hereto will enter into a Participation and Development Agreement (the
“Participation Agreement”), which will provide, among other terms and conditions customary for oil and gas transactions, that MPC will have a 25% Back-In After Payout
(“BIAPO”). The Participation Agreement will also provide: that the Purchaser will pay its proportion of the $25,000 fee to the prior lessor of the Oil and Gas Leases to spud each well and its proportionate share of approximately
$75,000 for geological and land man costs; that the Purchaser will spud the first vertical development well by July 10, 2016; that there will be a 180 day continuous development clause from spud to spud of each well throughout the life of the
Agreement; that drilling vertical pilot wells are required on the first two wells provided they are completed with sufficient casing size; that the third well must be horizontal, however this first horizontal well shall not be proposed until at
least one year from the effective date of the Agreement; and that the Purchaser shall run a full suite of logs and core data as required on all wells drilled on the acreage. The Participation Agreement will further provide that all drilled,
completed and producing wells will hold the acreage according to acceptable field rules established by the Texas Railroad Commission. Once acreage is held by production, it will fall outside the continuous development agreement and will not be
subject to surrender. BIAPO hall be defined as the point in time when the proceeds of all production from all operations conducted on all acreage within the AMI (attached hereto as Exhibit “A”) (exclusive of royalty, overriding royalty and
taxes chargeable to the working interest) equals the actual cost incurred by the Operator in drilling, testing, equipping and the cost of operating the well(s), inclusive of overhead charges as defined in the “COPAS” attached to the Joint
Operating Agreement, any additional acreage acquisition, seismic costs, spud fees, land costs, and further including the cost of the Warrant Shares as accounted for by TRCH utilizing the Black Sholes method of accounting and including the geologic
and land man costs of $75,000. No sales proceeds of working interests shall ever be included in or characterized as revenues attributable to ownership of the oil and gas leases for purposes of calculating BIAPO under the Participation Agreement. For
the first three wells drilled on the lands subject to the Oil and Gas Leases or on AMI lands, if any Party of this Agreement, the Participation Agreement or Joint Operating Agreement does not pay their proportionate drilling or completion costs for
any operations authorized under the Joint Operating Agreement, then such Party shall forfeit all of its leasehold interest in the Oil and Gas Leases and any leases obtained on AMI lands that have not been already earned through drilling and
completion operations. After the first three wells, any Party that elects not to consent to any authorized operations under the Joint Operating Agreement shall be penalized by 500% of the costs of all authorized operations for that well and any
wells drilled on any tract that is directly adjacent to the tract where the well was drilled and such party went non-consent. If upon reasonable efforts and/or no later than 30 days after the effective date of
this Agreement, the Participation Agreement has not been executed by MPC and Purchaser and any other necessary party, then this Agreement shall be terminated, MPC shall return all warrants to TEI or TRCH and MPC, TEI and TRCH shall have no liability
to each other under this Agreement (except for and unless there is a breach under another provision of this Agreement). 
 Section 4.2
Joint Operating Agreement. Purchaser and MPC will enter into a Joint Operating Agreement which will provide that the Purchaser will be the operator of the acreage and will contain such terms and conditions as are customary for oil and gas
transactions. Such Joint Operating Agreement shall be entered into contemporaneously with the Participation and Development Agreement. 

  
 Purchase Agreement - Page
5 

 Section 4.3 Geologic Data. Purchaser agrees to furnish to MPC all geologic,
seismic and engineering data related to the Oil and Gas Leases. 
 Section 4.4 Mid-stream
Activities. Any activity on the Oil and Gas Leases and/or the AMI related to mid-stream or associated economic activities will be subject to the terms of an agreement between the Purchaser and MPC. 

Section 4.5 Farmout Agreement. This Agreement is expressly subject to the Farmout Agreement. If there is any conflict between the
terms of this Agreement and the Farmout Agreement, the Farmout Agreement shall control. (See attached Exhibit B) 
 ARTICLE V 

MISCELLANEOUS 

Section 5.1 Amendment; Waiver. Neither this Agreement nor any provision hereof may be amended, modified or supplemented unless in
writing, executed by all the parties hereto. Except as otherwise expressly provided herein, no waiver with respect to this Agreement shall be enforceable unless in writing and signed by the party against whom enforcement is sought. Except as
otherwise expressly provided herein, no failure to exercise, delay in exercising, or single or partial exercise of any right, power or remedy by any party, and no course of dealing between or among any of the parties, shall constitute a waiver of,
or shall preclude any other or further exercise of, any right, power or remedy. 
 Section 5.2 Notices. Any notices or other
communications required or permitted hereunder shall be sufficiently given if in writing and delivered in Person or sent by registered or certified mail (return receipt requested) or nationally recognized overnight delivery service, postage pre-paid, addressed as follows, or to such other address has such party may notify to the other parties in writing: 
  

					
	(a)	  	If to the MPC:	  	 McCabe Petroleum Corporation
 Attn: Greg
McCabe
 500 W. Texas, Suite 1110
 Midland, Texas
79702

			
	(b)	  	If to the TEI or TRCH:	  	 Torchlight Energy Resources, Inc.
 Torchlight
Energy, Inc.
 Attn: John Brda, CEO
 5700 W. Plano Parkway,
Suite 3600
 Plano, Texas 75093

 A notice or communication will be effective (i) if delivered in Person or by overnight courier, on the business day
it is delivered and (ii) if sent by registered or certified mail, three (3) business days after dispatch. 

  
 Purchase Agreement - Page
6 

 Section 5.3 Severability. Whenever possible, each provision of this Agreement
shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be prohibited by or invalid under applicable law, such provision will be ineffective only to the extent of such
prohibition or invalidity, without invalidating the remainder of this Agreement. 
 Section 5.4 Assignment; Successors and
Assigns. Except as otherwise provided herein, the provisions hereof shall inure to the benefit of, and be binding upon, the successors and permitted assigns of the parties hereto. No party hereto may assign its rights or delegate its obligations
under this Agreement without the prior written consent of the other parties hereto, which consent will not be unreasonably withheld. 

Section 5.5 Entire Agreement. This Agreement and the other documents delivered pursuant hereto constitute the full and entire
understanding and agreement between the parties with regard to the subject matter hereof and thereof and supersede and cancel all prior representations, alleged warranties, statements, negotiations, undertakings, letters, acceptances,
understandings, contracts and communications, whether verbal or written among the parties hereto and thereto or their respective agents with respect to or in connection with the subject matter hereof. 

Section 5.6 Choice of Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Texas.

 Section 5.7 Execution. This Agreement may be executed in two or more counterparts, all of which when taken together shall be
considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart. In the event that any
signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf’ format data file, such signature shall create a valid and binding obligation of the party executing (or on whose
behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf’ signature page were an original thereof. 

Section 5.8 Costs and Expenses. Each party shall pay their own respective fees, costs and disbursements incurred in connection
with this Agreement. 
 Section 5.9 No Third-Party Beneficiaries. Nothing in this Agreement will confer any third party
beneficiary or other rights upon any person (specifically including any employees of The Company) or any entity that is not a party to this Agreement. 

Section 5.10 Further Assurances. Each party covenants that at any time, and from time to time, after the Closing Date, it will
execute such additional instruments and take such actions as may be reasonably be requested by the other parties to confirm or perfect or otherwise to carry out the intent and purposes of this Agreement. 

  
 Purchase Agreement - Page
7 

 Section 5.11 Exhibits Not Attached. Any exhibits not attached hereto on the date
of execution of this Agreement shall be deemed to be and shall become a part of this Agreement as if executed on the date hereof upon each of the parties initialing and dating each such exhibit, upon their respective acceptance of its terms,
conditions and/or form. 
 Section 5.12 Attorney Review - Construction. In connection with the negotiation and drafting of this
Agreement, the parties represent and warrant to each other that they have had the opportunity to be advised by attorneys of their own choice and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved
against the drafting party shall not be employed in the interpretation of this Agreement or any amendments hereto. 
 IN WITNESS WHEREOF,
the undersigned have executed this Purchase Agreement to become effective as of the date first set forth above. 
  

			
	TORCHLIGHT ENERGY RESOURCES, INC.
		
	By:	 	 /s/ John Brda

		 	John Brda, CEO
	
	TORCHLIGHT ENERGY, INC.
		
	By:	 	 /s/ John Brda

		 	John Brda, CEO
	
	MCCABE PETROLEUM CORPORATION
		
	By:	 	 /s/ Greg McCabe

		 	Greg McCabe, President

  
 Purchase Agreement - Page
8 

 Exhibit A 
  

 

 

 

 

 
 Torchlight Energy Resources, Inc. 

5700 Plano Parkway, Suite 3600 

Plano, Texas 75093 
 Telephone:
(214) 432-8002 
 July 7, 2016 

McCabe Petroleum Corporation 
 Attn: Greg McCabe 

500 W. Texas, Suite 1110 
 Midland, Texas 79702 

RE: Purchase Agreement dated April, 2016 
 Dear
Mr. McCabe: 
 On or about April 4, 2016, McCabe Petroleum Corporation (“MPC”), Torchlight Energy Resources, Inc.
(“TERI”) and Torchlight Energy, Inc. (“TEI”) entered into a Purchase Agreement whereby MPC conveyed an interest to TEI of a certain leasehold estate located in Sterling, Tom Green and Irion Counties, Texas (the “Purchase
Agreement”). It has come to our attention, that section 1.2 of the Purchase Agreement incorrectly references July 10, 2016 for purpose of that section. The intent of the parties to the Purchase Agreement was that the date referenced in
that section was to correspond with the underlying lease and Farmout Agreement, and accordingly should be July 11, 2016. Accordingly, MPC, TERI and TEI hereby mutually agree that reference to July 10, 2016 in section 1.2 of the Purchase
Agreement is hereby amended and replaced with July 11, 2016. All terms and conditions of the Purchase Agreement shall, except as herein modified, remain in full force and effect. 

If the foregoing accurately sets forth our agreement and understanding regarding the matters set forth therein, please so indicate by signing
this letter on behalf of MPC and returning one copy. 
  

							
		 		 	TORCHLIGHT ENERGY RESOURCES, INC.
				
		 		 	By:	 	 /s/ John Brda

		 		 		 	John Brda, President and CEO
			
		 		 	TORCHLIGHT ENERGY, INC.
				
		 		 	By:	 	 /s/ John Brda

		 		 		 	John Brda, President
	AGREED TO AND ACCEPTED ON	 		 		 	
	July 7, 2016.	 		 		 	
			
		 		 	MCCABE PETROLEUM CORPORATION
				
		 		 	By:	 	 /s/ Greg McCabe

		 		 		 	Name
		 		 		 	Greg McCabe, President

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