Document:

WARRANT

TO
PURCHASE SHARES OF COMMON STOCK

 

FOOTHILLS
EXPLORATION, INC.

A
Delaware Corporation

 

THIS
WARRANT HAS BEEN, AND THE SHARES OF COMMON STOCK WHICH MAY BE PURCHASED PURSUANT TO THE EXERCISE OF THIS WARRANT (THE “WARRANT
SHARES”) WILL BE, ACQUIRED SOLELY FOR INVESTMENT AND NOT WITH A VIEW TO, OR FOR RESALE IN CONNECTION WITH, ANY DISTRIBUTION
THEREOF. NEITHER THIS WARRANT NOR THE WARRANT SHARES (TOGETHER, THE “SECURITIES”) HAVE BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE SOLD, OFFERED
FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF SUCH REGISTRATION OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY AND
ITS COUNSEL THAT SUCH DISPOSITION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF THE SECURITIES ACT AND
OF ANY APPLICABLE STATE SECURITIES LAWS. THIS WARRANT MUST BE SURRENDERED TO THE COMPANY OR ITS TRANSFER AGENT AS A CONDITION
PRECEDENT TO THE SALE, PLEDGE OR OTHER TRANSFER OF ANY INTEREST IN ANY OF THE SHARES REPRESENTED BY THIS WARRANT.

 

	Warrant
    No.: 10	September
    29, 2017
	Denver,
    Colorado	 

 

THIS
CERTIFIES THAT, effective as of September 29, 2017, for value received, Elliot G. Freier, trustee of the Elliot G. Freier Revocable
Trust U/A 9/6/06 (the “Holder”) is entitled to subscribe for and purchase from Foothills Exploration, Inc., a
Delaware corporation (the “Company”), 375,000 shares of the Company’s Common Stock (as adjusted pursuant
to Section 3 hereof) (the “Warrant Shares”) at the purchase price of $0.665 per share (as adjusted pursuant
to Section 3 hereof) (the “Exercise Price”), upon the terms and subject to the conditions hereinafter set forth.

 

1.
Exercise Rights.

 

(a)
Cash Exercise. The purchase rights represented by this Warrant may be exercised by the Holder at any time during the
term hereof, in whole or in part commencing on September 29, 2017, by surrender of this Warrant and delivery of a completed and
duly executed Notice of Cash Exercise, in the form attached as Exhibit A hereto, accompanied by payment to the Company
of an amount equal to the Exercise Price then in effect multiplied by the number of Warrant Shares to be purchased by the Holder
in connection with such cash exercise of this Warrant, which amount may be paid, at the election of the Holder, by wire transfer
or delivery of a check payable to the order of the Company, to the principal offices of the Company. The exercise of this Warrant
shall be deemed to have been effected on the day on which the Holder surrenders this Warrant to the Company and satisfies all
of the requirements of this Section. Upon such exercise, the Holder will be deemed a shareholder of record of those Warrant Shares
for which the Warrant has been exercised with all rights of a shareholder (including, without limitation, all voting rights with
respect to such Warrant Shares and all rights to receive any dividends with respect to such Warrant Shares). If this Warrant is
to be exercised in respect of less than all of the Warrant Shares covered hereby, the Holder shall be entitled to receive a new
warrant covering the number of Warrant Shares in respect of which this Warrant shall not have been exercised and for which it
remains subject to exercise. Such new warrant shall be in all other respects identical to this Warrant.

 

    	 	 -1-	 

    	 

    

 

(b)
Additional Conditions to Exercise of Warrant. Unless there is a registration statement declared or ordered effective
by the Securities and Exchange Commission (the “Commission”) under the Securities Act, which includes the Warrant
Shares to be issued upon the exercise of the rights represented by this Warrant, such rights may not be exercised unless and until:

 

(i)
the Company shall have received an Investment Representation Statement, in the form attached as Exhibit B hereto, certifying
that, among other things, the Warrant Shares to be issued upon the exercise of the rights represented by this Warrant are being
acquired for investment and not with a view to any sale or distribution thereof; and

 

(ii)
each certificate evidencing the Warrant Shares to be issued upon the exercise of the rights represented by this Warrant shall
be stamped or imprinted with a legend substantially in the following form:

 

THE
SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT FOR DISTRIBUTION, AND HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR ANY STATE SECURITIES LAWS. SUCH SHARES MAY
NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED, OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN OPINION
OF COUNSEL SATISFACTORY TO THE COMPANY AND ITS COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT. THIS CERTIFICATE
MUST BE SURRENDERED TO THE COMPANY OR ITS TRANSFER AGENT AS A CONDITION PRECEDENT TO THE SALE, PLEDGE OR OTHER TRANSFER OF ANY
INTEREST IN ANY OF THE SHARES REPRESENTED BY THIS CERTIFICATE.

 

(c)
Fractional Shares. Upon the exercise of the rights represented by this Warrant, the Company shall round up any fractional
shares of Common Stock to the next whole share.

 

(d)
Expiration of Warrant. This Warrant shall expire at the later of: (i) 5:00 p.m. Pacific Standard Time on September
29, 2019 or (ii) 24 months after the common stock of the Company has been registered under the Securities Exchange Act of 1934,
and shall thereafter no longer be exercisable or have any value whatever.

 

(e)
Record Ownership of Warrant Shares. The Warrant Shares shall be deemed to have been issued, and the person in whose
name any certificate representing Warrant Shares shall be issuable upon the exercise of the rights represented by this Warrant
(as indicated in the appropriate Notice of Exercise) shall be deemed to have become the holder of record of (and shall be treated
for all purposes as the record holder of) the Warrant Shares represented thereby, immediately prior to the close of business on
the date or dates upon which the rights represented by this Warrant are exercised in accordance with the terms hereof.

 

    	 	 -2-	 

    	 

    

 

(f)
Stock Certificates. In the event of any exercise of the rights represented by this Warrant, certificates for the Warrant
Shares so purchased pursuant hereto shall be delivered to the Holder promptly and, unless this Warrant has been fully exercised
or has expired, a new Warrant representing the Warrant Shares with respect to which this Warrant shall not have been exercised
shall also be issued to the Holder within such time.

 

(g)
Issue Taxes. The issuance of certificates for shares of stock upon the exercise of the rights represented by this Warrant
shall be made without charge to the Holder for any issuance tax in respect thereof; provided, however, that the
Company shall not be required to pay any tax which may be payable in respect of any transfer involved in the issuance and delivery
of any certificate in a name other than that of the Holder of the Warrant.

 

(h)
Conditional Exercise. The Holder of this Warrant shall have the right to submit a notice of exercise of this Warrant
conditional upon an acquisition of the Company. If such transaction upon which such exercise is conditioned is not consummated,
such notice of exercise shall be deemed of no further force or effect.

 

2.
Stock Fully Paid; Reservation of Shares. All Warrant Shares that may be issued upon the exercise of the rights represented
by this Warrant, upon issuance, will be duly and validly issued, will be fully paid and nonassessable, will not violate any preemptive
rights or rights of first refusal, will be free from restrictions on transfer other than restrictions on transfer imposed by applicable
federal and state securities laws, will be issued in compliance with all applicable federal and state securities laws, and will
have the rights, preferences and privileges described in the Company’s Articles of Incorporation, as amended; and the Warrant
Shares will be free of any liens or encumbrances, other than any liens or encumbrances created by or imposed upon the Holder through
no action of the Company. During the period within which the rights represented by the Warrant may be exercised, the Company will
at all times have authorized and reserved for the purpose of issuance upon exercise of the purchase rights evidenced by this Warrant,
150% of the number of shares for which the Warrant is initially exercisable and shall increase the number of shares reserved for
issuance in the event of any adjustment required to satisfy Warrant exercise terms from time to time.

 

3.
Adjustment Rights.

 

(a)
Right to Adjustment. The number of Warrant Shares purchasable upon the exercise of the rights represented by this Warrant,
and the Exercise Price therefor, shall be subject to adjustment from time to time upon the occurrence of certain events, as follows:

 

(i)
Merger. If at any time there shall be a merger, consolidation or any other transaction of the Company with another
entity pursuant to which the Company is not the surviving corporation, then, as a part of such merger or consolidation, lawful
provision shall be made so that the holder of this Warrant shall thereafter be entitled to receive Warrant of the surviving entity
with substantially equivalent terms as this Warrant, exercisable for the period specified herein. In any such case, appropriate
adjustment shall be made in the application of the provisions of this Warrant with respect to the rights and interests of the
Holder after the merger or consolidation.

 

(ii)
Stock Splits, Dividends, Combinations and Consolidations. In the event of a stock split, stock dividend or subdivision
of or in respect of the outstanding shares of Common Stock, the number of Warrant Shares issuable upon the exercise of the rights
represented by this Warrant immediately prior to such stock split, stock dividend or subdivision shall be proportionately increased
and the Exercise Price then in effect shall be proportionately decreased, effective at the close of business on the date of such
stock split, stock dividend or subdivision, as the case may be. In the event of a reverse stock split, consolidation, combination
or other similar event of or in respect of the outstanding shares of Common Stock, the number of Warrant Shares issuable upon
the exercise of the rights represented by this Warrant immediately prior to such reverse stock split, consolidation, combination
or other similar event shall be proportionately decreased and the Exercise Price shall be proportionately increased, effective
at the close of business on the date of such reverse stock split, consolidation, combination or other similar event, as the case
may be.

 

    	 	 -3-	 

    	 

    

 

(iii)
Down Round Adjustments. If the Company during the term of this Warrant (the “Anti-Dilution Period”)
issues any additional securities (a “New Issuance”) (including, but not limited to, any class of shares, preferred
stock, warrants, rights to subscribe for shares, convertible debt or other securities convertible into any share class) for a
consideration per share, after giving effect to commissions, fees and other expenses (collectively “offering costs”),
that is less, or which on conversion or exercise of the underlying security is less, than $0.665 per share, (as adjusted for any
change resulting from any forward or reverse share splits, stock dividends and similar events) (a “Down Round Price”),
the Company shall reduce the Exercise Price to equal the result obtained by multiplying (A) a fraction whose (i) numerator is
the Down Round Price and (ii) denominator is the then Exercise Price by (B) the then Exercise Price and shall increase the number
of Warrant Shares by multiplying the number of Warrant Shares (as adjusted for any change resulting from any forward or reverse
share splits, stock dividends and similar events) by the inverse of clause (A). By way of illustration: If within the Anti-Dilution
Period (assuming no adjustments for any change resulting from any forward or reverse share splits, stock dividends and similar
events have occurred) the Company issues convertible debt that may at the option of the holder be converted into common stock,
giving effect to offering costs, or issues new warrants to any person, at a Down Round Price of $0.50 per share, the Company thereupon
shall reduce the Exercise Price to equal (A) 0.50 over 0.665 x (B) $0.665 = $0.50 per share and shall increase the number of Warrant
Shares to 375,000 shares x 0.665 over 0.50 = 498,750 shares.

 

(b)
Adjustment Notices. Upon any adjustment of the Exercise Price, and any increase or decrease in the number of Warrant
Shares subject to this Warrant, in accordance with this Section 3, the Company, within thirty (30) days thereafter, shall give
written notice thereof to the Holder at the address of such Holder as shown on the books of the Company, which notice shall state
the Exercise Price as adjusted and, if applicable, the increased or decreased number of Warrant Shares subject to this Warrant,
setting forth in reasonable detail the method of calculation of each such adjustment.

 

4.
Transfer of Warrant.

 

(a)
Conditions. This Warrant and the rights represented hereby are not transferable, except in accordance with the conditions
set forth in this Section 4. In order to effect any transfer of all or a portion of this Warrant, the Holder hereof shall deliver
to the Company a completed and duly executed Notice of Transfer, in the form attached as Exhibit C hereto. Once the Warrant
is exercised, the Warrant Shares shall be transferable in accordance with the Investor Rights Agreement.

 

    	 	 -4-	 

    	 

    

 

(b)
Additional Conditions to Transfer of Warrant. Unless there is a registration statement declared or ordered effective
by the Commission under the Securities Act which includes this Warrant, this Warrant may not be transferred unless and until:

 

(i)
the Company receives an Investment Representation Statement, in the form attached as Exhibit B hereto, certifying that,
among other things, this Warrant is being acquired for investment and not with a view to any sale or distribution thereof; and

 

(ii)
the Company receives a written notice from the Holder which describes the manner and circumstances of the proposed transfer accompanied
by a written opinion of Holder’s legal counsel, in form and substance reasonably satisfactory to the Company, stating that
such transfer is exempt from the registration and prospectus delivery requirements of the Securities Act and all applicable state
securities laws or with a Commission “no-action” letter stating that future transfers of such securities by the transferor
or the contemplated transferee would be exempt from registration under the Securities Act or such securities may be transferred
in accordance with Rule 144(d). Upon receipt of the foregoing, the Company shall, or shall instruct its transfer agent to, promptly,
and without expense to the Holder issue new securities in the name of the transferee not bearing the legends required under Section
1(b)(ii). In addition, new securities shall be issued without such legend if such legends may be properly removed under the terms
of Rule 144.

 

(c)
Change of Control. If the Company is acquired or otherwise has more than fifty percent (50%) of its voting stock transferred
or issued in one or more related transactions (“Change of Control Transaction”), the Company shall, at the request
of the Holder, repurchase the Warrant at a per share price equal to the average per share acquisition or issuance price of the
transaction(s) less the Exercise Price (as adjusted herein). Alternatively, the Company may arrange to have one or more of the
new shareholders in the acquisition or Change of Control Transaction assume and perform the Company’s purchase obligation
in this Section 4(c).

 

5.
No Shareholder Rights. The Holder of this Warrant (and any transferee hereof) shall not be entitled to vote on matters
submitted for the approval or consent of the shareholders of the Company or to receive dividends declared on or in respect of
shares of Common Stock, or otherwise be deemed to be the holder of Common Stock or any other capital stock or other securities
of the Company which may at any time be issuable upon the exercise of the rights represented hereby for any purpose, nor shall
anything contained herein be construed to confer upon the Holder (or any transferee hereof) any of the rights of a shareholder
of the Company or any right to vote for the election of directors or upon any matter submitted for the approval or consent of
the shareholders, or to give or withhold consent to any corporate action (whether upon any recapitalization, issuance of stock,
reclassification of stock, merger or consolidation, conveyance, or otherwise) or to receive notice of meetings, or to receive
dividends or subscription rights or otherwise until this Warrant shall have been exercised as provided herein. No provision of
this Warrant, in the absence of the actual exercise of such Warrant or any part thereof into Common Stock issuable upon such exercise,
shall give rise to any liability on the part of such Holder as a shareholder of the Company, whether such liability shall be asserted
by the Company or by creditors of the Company.

 

    	-5-

    	 

    

 

6.
Registration Rights.

 

(a)
Piggy Back Registration Rights. At any time following the date hereof
that the Warrants or Warrant Shares, rights represented by this Warrant together with shares issuable on exercise of rights (collectively,
the “Registrable Securities”) are owned by the Holder (which shall include its transferees, assignees or other successors
in interest) and there is not an effective registration statement covering all of the Registrable Securities, and if the Company
shall determine to prepare and file with the SEC a registration statement relating to an
offering for its own account or the account of others under the Act, of any of its equity securities, other than on Form S-4 or
Form S-8 (each as promulgated under the Act) or their then equivalents (the “Registration Statement”) relating to
equity securities to be issued solely in connection with any acquisition of any entity or business or equity securities issuable
in connection with the Company’s stock option or other employee benefit plans, then the Company shall deliver to Holder
a written notice of such determination and automatically, and without any further request from the Holder of Registrable Securities
include in such registration statement all of such Registrable Securities unless and to the extent that, such Holder requests
otherwise in writing; provided, however, that Registrable Securities may be reduced on a pro rata basis with such
other securities being registered on the applicable registration statement if and to the extent that the underwriter(s) associated
with the offering which is the subject of the Registration Statement believes, in good faith, that the inclusion of such Registrable
Securities will have an adverse effect on the sale of the securities for which such registration statement was filed. The Company
shall not be required to register any Registrable Securities pursuant to this Section 6(a) that have been sold pursuant to Rule
144 promulgated by the SEC pursuant to the Act (and the Company shall have caused its counsel to render an opinion letter as such
in favor of the Holder that such resales were in compliance with Rule 144 at Company’s expense and the Company indemnifies
the Holder with respect to reliance on such opinion) or that are the subject of a then effective registration statement. If any
SEC guidance or FINRA regulation sets forth a limitation on the number of securities permitted to be registered on a particular
registration statement (and notwithstanding that the Company used diligent efforts to advocate with the SEC or such other applicable
regulatory authority for the registration of all or a greater portion of Registrable Securities), the number of Registrable Securities
to be registered on such registration statement will be reduced on a pro rata basis with such other securities being registered
on the applicable registration statement.

 

(b)
Demand Registration Rights.

 

(i)
Subject to the terms and conditions, and in accordance with the provisions of this Section 6, at any time after the six month
anniversary of the issuance of this Warrant, if the Company shall receive a written request from Holder that the Company file
with the SEC a registration statement under the Securities Act covering the registration of the Registrable Securities then outstanding,
then the Company shall, within 30 days of the receipt thereof and subject to the limitations of this Section 6, prepare and, as
soon as practicable, file with the SEC an initial Registration Statement on Form S-1 covering the resale of all of such Registrable
Securities; provided, that a Registration Statement shall not count as a demand registration requested under this Section
6(b)(i) unless and until it has become effective and the Holder is able to register and sell at least ninety percent (90%) of
the Registrable Securities requested to be included in such registration (for the avoidance of doubt, any reduction in the Registrable
Securities included in an offering under a Registration Statement at the request of an underwriter may result in such Registration
Statement not counting toward the number of demand registrations under this subsection).. Such Registration Statement, and each
other Registration Statement required to be filed pursuant to the terms of this Agreement, shall contain the “Selling Shareholders”
and “Plan of Distribution” sections in substantially the form attached hereto as Exhibit D. The Company shall use
reasonable commercial efforts to have such Registration Statement, and each other Registration Statement required to be filed
pursuant to the terms of this Agreement, declared effective by the SEC as soon as practicable. If requested by the Holder, such
Registration Statement on Form S-1 shall be for an offering to be made on a delayed or continuous basis pursuant to Rule 415 under
the Securities Act or any successor rule thereto (a “Shelf Registration Statement”) that covers all Registrable Securities
then outstanding for an offering to be made on a delayed or continuous basis pursuant to Rule 415 under the Securities Act or
any successor rule thereto (a “Shelf Registration”). The Company shall not include in any demand registration any
securities which are not Registrable Securities without the written consent of the Holder. At any time that a Shelf Registration
Statement is effective, if a holder of Registrable Securities covered by such Shelf Registration Statement delivers a notice to
the Company (a “Shelf Takedown Notice”) stating that the holder intends to effect an offering of all or part of its
Registrable Securities included in such Shelf Registration Statement (a “Shelf Takedown”) and the Company is eligible
to use such Shelf Registration Statement for such Shelf Takedown, then the Company shall take all actions reasonably required,
including amending or supplementing (a “Shelf Supplement”) such Shelf Registration Statement, to enable such Registrable
Securities to be offered and sold as contemplated by such Shelf Takedown Notice. Each Shelf Takedown Notice shall specify the
number of Registrable Securities to be offered and sold under the Shelf Takedown. If the Holder requesting a demand registration
or Shelf Takedown elects to distribute the Registrable Securities covered by their request in an underwritten offering, they shall
so advise the Company as a part of their request made pursuant to this Section 6(b) and the Holder requesting the demand registration
or Shelf Takedown shall select the investment banking firm or firms to act as the managing underwriter or underwriters in connection
with such offering; provided, that such selection shall be subject to the consent of the Company, which consent shall not be unreasonably
withheld or delayed. The Company shall be obligated to enter into an underwriting agreement with such investment banking firm
or firms to facilitate such offering.

 

    	-6-

    	 

    

 

(ii)
At such time as the Company shall have qualified for the use of a Registration Statement on Form S-3 or any successor form thereto
for the resale of the Registrable Securities, the Holder shall have the right to request an unlimited number of registrations
under the Securities Act of all or any portion of their Registrable Securities pursuant to a Registration Statement on Form S-3
or any similar short-form Registration Statement (each, a “Short-Form Registration”). Each request for a Short-Form
Registration shall specify the number of Registrable Securities requested to be included in the Short-Form Registration. Upon
receipt of any such request, the Company shall within 30 days of the receipt thereof, and subject to the limitations of this Section
6, prepare and, as soon as practicable, file with the SEC a Registration Statement on Form S-3 covering the resale of all of the
Registrable Securities so requested. If so requested by the Holder, the Company shall file such Short-Form Registration as a Shelf
Registration Statement for an offering to be made on a delayed or continuous basis pursuant to Rule 415 under the Securities Act
or any successor rule thereto. The provisions in Section 6(b)(i) relating to Shelf Takedowns and Shelf Supplements shall apply
to Short-Form Registrations that the Holder requests be filed as Shelf Registration Statements. If the Holder requesting a Short-Form
Registration or Shelf Takedown elects to distribute the Registrable Securities covered by their request in an underwritten offering,
they shall so advise the Company as a part of their request made pursuant to this Section and the Holder requesting the Short-Form
registration or Shelf Takedown shall select the investment banking firm or firms to act as the managing underwriter or underwriters
in connection with such offering; provided, that such selection shall be subject to the consent of the Company, which consent
shall not be unreasonably withheld or delayed. The Company shall be obligated to enter into an underwriting agreement with such
investment banking firm or firms to facilitate such offering.

 

(c)
Registration Process. In connection with the registration of the Registrable Securities pursuant to Sections 6(a) and
(b) above, the Company shall:

 

    	-7-

    	 

    

 

(i)
Prepare and file with the SEC the Registration Statement and such amendments (including post effective amendments) to the Registration
Statement and supplements to the prospectus included therein (a “Prospectus”) as the Company may deem necessary or
appropriate and take all lawful action such that the Registration Statement and any amendment thereto does not, when it becomes
effective, contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary
to make the statements therein, not misleading and that the Prospectus forming part of the Registration Statement, and any amendment
or supplement thereto, does not at any time during the period commencing on the effective date of the Registration Statement and
ending on the first year anniversary date of the expiration of the Warrant (or, if earlier, when all the Warrant Shares have been
sold) (the “Registration Period”) include an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were
made, not misleading;

 

(ii)
Comply with the provisions of the Securities Act with respect to the Registrable Securities covered by the Registration Statement
until the earlier of (i) such time as all of such Registrable Securities have been disposed of in accordance with the intended
methods of disposition by each Holder as set forth in the Prospectus forming part of the Registration Statement or (ii) the date
on which the Registration Statement is withdrawn;

 

(iii)
Furnish to Holder and its legal counsel identified to the Company (i) promptly after the same is prepared and publicly distributed,
filed with the SEC, or received by the Company, one copy of the Registration Statement, each Prospectus, and each amendment or
supplement thereto, and (ii) such number of copies of the Prospectus and all amendments and supplements thereto and such other
documents, as the Holder may reasonably request in order to facilitate the disposition of the Registrable Securities. Such documents
may be made available to Holder through the SEC’s EDGAR system;

 

(iv)
Register or qualify the Registrable Securities covered by the Registration Statement under such securities or “blue sky”
laws of such jurisdictions as the Holder reasonably request, (i) prepare and file in such jurisdictions such amendments (including
post effective amendments) and supplements to such registrations and qualifications as may be necessary to maintain the effectiveness
thereof at all times during the Registration Period, (ii) take all such other lawful actions as may be necessary to maintain such
registrations and qualifications in effect at all times during the Registration Period, and (iii) take all such other lawful actions
reasonably necessary or advisable to qualify the Registrable Securities for sale in such jurisdictions; provided, however,
that the Company shall not be required in connection therewith or as a condition thereto to (A) qualify to do business in any
jurisdiction where it would not otherwise be required to qualify, (B) subject itself to general taxation in any such jurisdiction
or (C) file a general consent to service of process in any such jurisdiction;

 

(v)
Promptly after becoming aware of such event, notify Holder of the occurrence of any event, as a result of which the Prospectus
included in the Registration Statement, as then in effect, includes an untrue statement of a material fact or omits to state a
material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which
they were made, not misleading, and promptly prepare an amendment to the Registration Statement and supplement to the Prospectus
to correct such untrue statement or omission, and deliver a number of copies of such supplement and amendment to Holder as such
Holder may reasonably request;

 

    	-8-

    	 

    

 

(vi)
As promptly as practicable after becoming aware of such event, notify each Holder (or, in the event of an underwritten offering,
the managing underwriters) of the issuance by the SEC of any stop order or other suspension of the effectiveness of the Registration
Statement and take all lawful action to effect the withdrawal, rescission or removal of such stop order or other suspension;

 

(vii)
Take all such other lawful actions reasonably necessary to expedite and facilitate the disposition by the Holder of its Registrable
Securities in accordance with the intended methods therefore provided in the Prospectus which are customary under the circumstances;

 

(viii)
Cooperate with the Holder to facilitate the timely preparation and delivery of certificates representing Registrable Securities
to be sold pursuant to the Registration Statement, which certificates shall, if required under the terms of this Agreement, be
free of all restrictive legends, and to enable such Registrable Securities to be in such denominations and registered in such
names as any Holder may request and maintain a transfer agent for the Common Stock; and

 

(ix)
In the case of a Shelf Registration, prepare and file with the SEC such amendments, post-effective amendments and supplements
to such Registration Statement and the prospectus used in connection therewith as may be necessary to keep such Registration Statement
effective and to comply with the provisions of the Securities Act with respect to the disposition of all Registrable Securities
subject thereto for the Registration Period.

 

(d)
Obligations and Acknowledgements of the Holder. In connection with the registration of the Registrable Securities,
Holder shall have the following obligations and hereby make the following acknowledgements:

 

(i)
It shall be a condition precedent to the obligations of the Company to include the Registrable Securities in the Registration
Statement that Holder wishing to participate in the Registration Statement (i) promptly shall furnish to the Company such information
regarding itself, the Registrable Securities held by it and the intended method of disposition of the Registrable Securities held
by it as shall be reasonably required to effect the registration of such Registrable Securities and (ii) promptly shall execute
such documents in connection with such registration as the Company may reasonably request. Prior to the first anticipated filing
date of a Registration Statement, the Company shall notify each Holder of the information the Company requires from such Holder
(the “Requested Information”) if such Holder elects to have any of its Registrable Securities included in the Registration
Statement. If Holder notifies the Company and provides the Company the information required hereby at least three business days
before the Company files Amendment No.1 to the Registration Statement, the Company will include such information within an amendment
to the Registration Statement that includes the Registrable Securities of such Holder.

 

(ii)
Holder agrees promptly and timely to cooperate with the Company in connection with the preparation and filing of a Registration
Statement hereunder, unless such Holder has notified the Company in writing of its election to exclude all of its Registrable
Securities from such Registration Statement;

 

(iii)
Holder agrees that, upon receipt of any notice from the Company of the occurrence of any event of the kind described in Section
6(c)(v) or 6(c)(vi), such Holder shall immediately discontinue its disposition of Registrable Securities pursuant to the Registration
Statement covering such Registrable Securities until the Holder’s receipt of the copies of the supplemented or amended Prospectus
contemplated by Section 6(c)(v) and, if so directed by the Company, the Holder shall deliver to the Company (at the expense of
the Company) or destroy (and deliver to the Company a certificate of destruction) all copies in the Holder’s possession,
of the Prospectus covering such Registrable Securities current at the time of receipt of such notice; and

 

    	-9-

    	 

    

 

(iv)
Holder covenants and agrees that it will comply with the prospectus delivery requirements of the Securities Act as applicable
to it or an exemption therefrom in connection with the offer and sale of Registrable Securities pursuant to any Registration Statement.

 

(e)
Expenses of Registration. All expenses (other than underwriting discounts and commissions and the fees and expenses
of Holder’s counsel) incurred in connection with registrations, filings or qualifications pursuant to this Section 6, including,
without limitation, all registration, listing, and qualifications fees, printing and engraving fees, accounting fees, and the
fees and disbursements of counsel for the Company, shall be borne by the Company.

 

(f)
Underwriting Requirements. In connection with any Registration Statement involving an underwritten offering of shares
of the Company’s Common Stock, the Company shall not be required to include any of Registrable Securities in such underwriting
unless Holder accepts the terms of the underwriting as agreed upon between the Company and its underwriters, and then only in
such quantity as the underwriter in its sole discretion determines will not jeopardize the success of the offering by the Company.
If the total number of Registrable Securities to be included in such offering (the “Requested Securities”) exceeds
the number of securities to be sold (other than by the Company) that the underwriter in its reasonable discretion determines is
compatible with the success of the offering, then the Company shall be required to include in the offering only that number of
such Requested Securities which the underwriter, in its sole discretion, determines will not jeopardize the success of the offering.
If the underwriter determines that less than all of the Requested Securities requested to be registered can be included in such
offering, then the securities to be registered that are included in such offering shall be allocated among the holders of the
Registrable Securities in proportion (as nearly as practicable to) the number of Requested Securities owned by each Holder. To
facilitate the allocation of shares in accordance with the above provisions, the Company or the underwriters may round the number
of shares allocated to any Holder to the nearest 10 shares. For purposes of the provision in this Section 4 concerning apportionment,
for any Holder that is a partnership, limited liability company, or corporation, the partners, members, retired partners, retired
members, shareholders, and affiliates of such Holder, or the estates and immediate family members of any such partners, retired
partners, members, and retired members and any trusts for the benefit of any of the foregoing persons, shall be deemed to be a
single “Holder,” and any pro rata reduction with respect to such “Holder” shall be based upon the aggregate
number of Requested Securities owned by all persons included in such “Holder,” as defined in this sentence. The Holder
understands that the underwriter may determine that none of the Registrable Securities can be included in the offering.

 

(g)
Indemnification. The Company shall, notwithstanding any termination of this Warrant, indemnify and hold harmless each
Holder, the officers, directors, members, partners, agents, brokers (including brokers who offer and sell Registrable Securities
as principal as a result of a pledge or any failure to perform under a margin call of shares of common stock), investment advisors
and employees (and any other persons with a functionally equivalent role of a person holding such titles, notwithstanding a lack
of such title or any other title) of each of them, each person who controls any such Holder (within the meaning of Section 15
of the Securities Act or Section 20 of the Exchange Act) and the officers, directors, members, stockholders, partners, agents
and employees (and any other persons with a functionally equivalent role of a person holding such titles, notwithstanding a lack
of such title or any other title) of each such controlling person, to the fullest extent permitted by applicable law, from and
against any and all losses, claims, damages, liabilities, costs (including, without limitation, reasonable attorneys’ fees)
and expenses (collectively, “Losses”), as incurred, arising out of or relating to (1) any untrue or alleged untrue
statement of a material fact contained in a Registration Statement, any prospectus or any form of prospectus or in any amendment
or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission of a
material fact required to be stated therein or necessary to make the statements therein (in the case of any prospectus or supplement
thereto, in light of the circumstances under which they were made) not misleading or (2) any violation or alleged violation by
the Company of the Securities Act, the Exchange Act or any state securities law, or any rule or regulation thereunder, in connection
with the performance of its obligations under this Agreement, except to the extent, but only to the extent, that (i) such untrue
statements or omissions are based solely upon information regarding such Holder furnished in writing to the Company by such Holder
expressly for use therein, or to the extent that such information relates to such Holder or such Holder’s proposed method
of distribution of Registrable Securities and was reviewed and expressly approved in writing by such Holder expressly for use
in a Registration Statement, such prospectus or in any amendment or supplement thereto (it being understood that the Holder has
approved Exhibit D hereto for this purpose) or (ii) in the case of an occurrence of an event of the type specified in Section
6(c)(v) and(vi), the use by such Holder of an outdated or defective prospectus after the Company has notified such Holder in writing
that the prospectus is outdated or defective and prior to the receipt by such Holder of advice from the Company that the use of
the applicable prospectus (as it may have been supplemented or amended) may be resumed. The Company shall notify the Holders promptly
of the institution, threat or assertion of any proceeding arising from or in connection with the transactions contemplated by
this Warrant of which the Company is aware.

 

    	-10-

    	 

    

 

7.
Miscellaneous.

 

(a)
Governing Law. This Warrant will be construed in accordance with, and governed in all respects by, the laws of the
State of California, as applied to agreements entered into, and to be performed entirely in such state, between residents of such
state.

 

(b)
Dispute Resolution.

 

(i)
Negotiation. In the event of any dispute, controversy or claim arising out of or relating to this Warrant, representatives
of the parties will meet in a location chosen by the party initiating the negotiation not later than ten (10) business days after
written notice from one party to the other of such dispute and will enter into good faith negotiations aimed at resolving the
dispute. If they are unable to resolve the dispute in a mutually satisfactory manner within thirty (30) business days from the
date of such notice, the matter may be submitted by either party to arbitration as provided for in Section 7(b)(ii), below.

 

(ii)
Arbitration.

 

(a)
Any dispute, controversy or claim between or among any of the parties hereto arising out of or relating to this Warrant or the
breach, termination or invalidity thereof, including any dispute as to whether any dispute is subject to arbitration, which has
not been resolved after good faith negotiations pursuant to Section 7(b)(i) hereof will be settled by binding arbitration administered
by the American Arbitration Association in accordance with its then current Commercial Arbitration Rules except as provided herein.

 

    	-11-

    	 

    

 

(b)
Any arbitration will be conducted in Los Angeles, California by a three (3) person arbitration panel, unless the parties can agree
on a single arbitrator within the same timeframe. The three (3) person arbitration panel will consist of one (1) party arbitrator
selected by the Company, one party arbitrator selected by the Holder, each of whom will be named within ten (10) business days
of the demand for arbitration, and one (1) neutral arbitrator selected by the first two (2) arbitrators. If the two (2) party
appointed arbitrators cannot agree on the neutral arbitrator within ten (10) business days of the selection of the last party
appointed arbitrator, the American Arbitration Association will appoint the neutral arbitrator, who will act as chairperson. In
the event of a vacancy with respect to an arbitrator, the vacancy will be filled within ten (10) business days of notice of the
vacancy in the same manner and subject to the same requirements as are provided for in the original appointment to that position.
If the vacancy is not filled within ten (10) business days, the American Arbitration Association will make the appointment.

 

It
is the intent of the parties to avoid the appearance of impropriety due to bias or partiality on the part of the neutral arbitrator.
Accordingly, prior to his or her appointment, such neutral arbitrator will disclose to the parties and the other members of the
tribunal, any financial, fiduciary, kinship or other relationship between the neutral arbitrator and any party or its counsel.
Any party will have the right to challenge in writing the appointment of the neutral arbitrator on the basis of and within five
(5) days of such disclosure. In the event of a challenge, the American Arbitration Association will uphold or dismiss the challenge
and its decision will be conclusive.

 

(c)
The law applicable to the validity of the arbitration clause, the conduct of the arbitration, including the resort to a court
for interim relief, enforcement of the award or any other question of arbitration law or procedure will be the United States’
Federal Arbitration Act, 9 U.S.C. § 1 et seq. The parties shall be entitled to engage in reasonable discovery including
requests for the production of all relevant documents and a reasonable number of depositions. The arbitration panel shall have
the sole discretion to determine the reasonableness of any requested document production or deposition. It is the intent of the
parties that a substantive hearing be held as soon as practicable after the appointment of the neutral arbitrator or the rejection
of a challenge thereto, whichever occurs later. The presentation of evidence will be governed by the federal Rules of Evidence.
A stenographic record of all witness testimony will be made.

 

(d)
Any award, including any interim award, made will be made by a majority of the arbitrators applying the substantive law of California
and will (i) be in writing and state the arbitration panel’s findings of fact and conclusions of law, (ii) be made promptly,
and in any event within sixty (60) days after the conclusion of the arbitration hearing; and (iii) be binding against the parties
involved and may be entered for enforcement in any court of competent jurisdiction.

 

    	-12-

    	 

    

 

(e)
Fifty percent of the costs of any arbitration proceeding (e.g., arbitrators, court reporter and room rental fees) will be borne
by the Company with the remaining 50% to paid by the other party to the dispute. However, each party will pay its own expense,
including attorneys’ and other professionals’ fees and disbursements; provided, however, that if the arbitrators
find that either party has acted unreasonably, they may award the other party all or a portion of their professional fees and
disbursements.

 

(f)
The arbitration provision set forth in this Section 7(b)(ii) will be a complete defense to any suit, action or proceeding instituted
in any court with respect to any matter arbitrable under this Warrant, except that judicial intervention may be sought in accordance
with Section 7(b)(iii) hereof.

 

(iii)
No Waivers; Interim Relief. The parties mutually acknowledge that an award of damages may be inadequate to remedy
any breach hereof and that injunctive relief may be required. Therefore, (i) a party may request a court of competent jurisdiction
to provide interim injunctive relief in aid of arbitration or to prevent a violation of this Warrant pending arbitration, and
any such request will not be deemed a waiver or breach of the obligations to arbitrate set forth herein and (ii) the arbitrators
may order equitable relief where they deem it appropriate and the parties agree that any interim relief ordered by the arbitrators
may be immediately and specifically enforced by a court otherwise having jurisdiction over the parties.

 

(c)
Successors and Assigns. Subject to the restrictions on transfer described in Section 4, the rights and obligations
of the Company and Holder of this Warrant shall be binding upon and benefit the successors, assigns, heirs, administrators and
transferees of the parties.

 

(d)
Waiver and Amendment. Any provision of this Warrant may be amended, waived or modified upon the written consent of
the Company and the Holder.

 

(e)
Notices. All notices and other communications required or permitted hereunder will be in writing and will be sent by
telecopier or mailed by first-class mail, postage prepaid, or delivered either by hand or by messenger, addressed (a) if to the
Holder, at the address indicated on the Company’s books, or at such other address and telecopier number as Holder will have
furnished to the Company in writing, or (b) if to the Company, at 633 17th Street, Suite 1700, Denver, Colorado 80202,
Attn: Chief Executive Officer, telecopier # (720) 449-7479, or at such other address and telecopier number as the Company will
have furnished to the Holder and each such other holder in writing.

 

Each
such notice or other communication will for all purposes of this Agreement be treated as effective or having been given when delivered
if delivered personally or by messenger (including overnight delivery service), the date of confirmation of transmission if sent
by telecopier (or the next business day if the date of confirmation is not a business day), or, if sent by mail, at the earlier
of its receipt or 72 hours after the same has been deposited in a regularly maintained receptacle for the deposit of the United
States mail addressed and mailed as aforesaid.

 

    	-13-

    	 

    

 

(f)
Severability. In case any provision of this Warrant will be invalid, illegal or unenforceable, the validity, legality
and enforceability of the remaining provisions will not in any way be affected or impaired thereby.

 

(g)
Lost Warrant. Upon receipt from the Holder of written notice or other evidence reasonably satisfactory to the Company
of the loss, theft, destruction or mutilation of the Warrant and, in the case of any such loss, theft or destruction, upon receipt
of an unsecured indemnity agreement and an affidavit of lost warrant, or in the case of any such mutilation upon surrender and
cancellation of the Warrant, the Company, at the Company’s expense, will make and deliver a new Warrant in lieu of the lost,
stolen, destroyed or mutilated Warrant carrying the same rights and obligations as the original Warrant. The Company will also
pay the cost of all deliveries of the Warrant upon any exchange thereof.

 

IN
WITNESS WHEREOF, the Company has caused this Warrant to be signed by its duly authorized officer as of the date first written
above.

 

	 	FOOTHILLS
    EXPLORATION, INC.
	 	a
    Delaware corporation
	 	 	
	 	By:	                                  
	 	 	B.P.
    Allaire
	 	 	 
	 	Its:	Chief
    Executive Officer

 

    	-14-

    	 

    

 

EXHIBIT
A

 

NOTICE
OF CASH EXERCISE

 

 

TO:
   ___________________________

 

1.
The undersigned hereby elects to purchase ____________ shares of Common Stock of Foothills Exploration, Inc., a Delaware corporation
(the “Company”), pursuant to the terms of Warrant No. 10 issued September 29, 2017, to and in the name of Elliot G.
Freier, trustee of the Elliot G. Freier Revocable Trust U/A 9/6/06, a copy of which is attached hereto (the “Warrant”),
and tenders herewith full payment of the aggregate Exercise Price for such shares in accordance with the terms of the Warrant.

 

2.
Please issue a certificate or certificates representing said shares of ____________ Stock in such name or names as specified below:

 

	 	 	 
	(Name)	 	(Name)
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	(Address)	 	(Address)

 

3.
The undersigned hereby represents and warrants that the aforesaid shares of stock are being acquired for the account of the undersigned
for investment and not with a view to, or for resale in connection with, the distribution thereof, and that the undersigned has
no present intention of distributing or reselling such shares. The undersigned has executed an Investment Representation Statement
with certain representations and warranties, in the form attached as Exhibit B to the Warrant, concurrently herewith.

 

	Date:	 	 	Name:	 

 

	 	By:	 
	 	 	(Signature
    must conform in all respects to name of the Holder as set forth on the face of the Warrant)

 

    	 	A-1	 

    	 

    

 

EXHIBIT
B

 

INVESTMENT
REPRESENTATION STATEMENT

 

	PURCHASER	:	 	 
	 	 	 	 
	SELLER
    	:	 	 
	 	 	 
	COMPANY	:	FOOTHILLS
    EXPLORATION, INC.
	 	 	 
	SECURITY	:	COMMON
    STOCK ISSUED UPON THE EXERCISE OF WARRANT NO. 10 ISSUED ON SEPTEMBER 29, 2017
	 	 	 
	AMOUNT	:	[_______________]
    SHARES
	 	 	 
	DATE	:	 	 

 

The
undersigned hereby represents and warrants to Foothills Exploration, Inc., a Delaware corporation (the “Company”),
as follows:

 

1.
I am aware of the business affairs, financial condition and results of operations of the Company and have acquired sufficient
information about the Company to reach an informed and knowledgeable investment decision to acquire the Securities. I am purchasing
the Securities for my own account for investment purposes only and not with a view to, or for the resale in connection with, any
“distribution” thereof for purposes of the Securities Act of 1933, as amended (the “Securities Act”).

 

2.
I understand that the Securities have not been registered under the Securities Act in reliance upon a specific exemption therefrom,
which exemption depends upon, among other things, the bona fide nature of my investment intent as expressed herein.

 

3.
I further understand that the Securities must be held indefinitely unless subsequently registered under the Securities Act or
unless an exemption from registration is otherwise available. In addition, I understand that the certificate evidencing the Securities
will be imprinted with a legend which prohibits the transfer of the Securities unless they are registered or such registration
is not required in the opinion of counsel for the Company.

 

4.
I am familiar with the provisions of Rule 144, promulgated under the Securities Act, which, in substance, permits limited public
resale of “restricted securities” acquired, directly or indirectly, from the issuer thereof, in a non-public offering
subject to the satisfaction of certain conditions.

 

	Date:
    	 	 	Name:
    	 

 

	 	By:	 
	 	 	 
	 	 	(Signature
    must conform in all respects to name of the Holder as set forth on the face of the Warrant)

 

    	 	B-1	 

    	 

    

 

EXHIBIT
C

 

NOTICE
OF TRANSFER

 

FOR
VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto ___________________________________________ the right
represented by Warrant No. 10 issued on September 29, 2017, to and in the name of Elliot G. Freier, trustee of the Elliot G.
Freier Revocable Trust U/A 9/6/06, to purchase ________________ shares of Common Stock of Foothills Exploration, Inc., a Delaware
corporation (the “Company”), a copy of which is attached hereto (the “Warrant”), and appoints ________________________________
as attorney-in-fact to transfer such right on the books of the Company with full power of substitution in the premises.

 

	Date:
    	        	 	Name:
    	 
	 		 	 	 
	 	 	 	By:	 
	 	 	 	 	 
	 	 	 	 	(Signature
    must conform in all respects to name of the Holder as set forth on the face of the Warrant)
	 	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	(Address)
	 	 	 	 	 
	Signed
    in the presence of:	 	 	 
	 	 	 	 	 
	By:		 	 	 
	 	 	 	 	 
	Name:	 	 	 	 

 

 

    	 	C-1	 

    	 

    

 

EXHIBIT
D

 

SELLING
STOCKHOLDERS

 

The
shares of common stock being offered by the selling shareholders are those issuable to the selling shareholders upon exercise
of the warrants. For additional information regarding the issuance of the warrants, see “Private Placement of Senior Note
and Warrants” above. We are registering the shares of common stock in order to permit the selling shareholder to offer the
shares for resale from time to time. Except for the ownership of the loan evidenced by note and the warrants issued pursuant to
the Note, the selling shareholders have not had any material relationship with us within the past three years.

 

The
table below lists the selling shareholder and other information regarding the beneficial ownership (as determined under Section
13(d) of the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder) of the shares of common stock
beneficially held by each of the selling shareholders, based on its respective beneficial ownership of the shares of common stock
as of ____________, 2018, assuming d exercise of the warrants held by such selling shareholder on that date but taking account
of any limitations on exercise set forth therein. The third column lists the number of shares of common stock being sold in this
offering. The fourth column lists the shares of common stock that will be beneficially owned by each selling shareholder following
this offering. We have assumed for purposes of preparing this table that the selling shareholder will sell all of the shares of
common stock being offered.

 

In
accordance with the terms of a registration rights agreement with the selling shareholders, this prospectus generally covers the
resale of the sum of (i) the number of shares of common stock that may be issued in connection with the conversion of all amounts
owed under the senior secured convertible promissory notes, in each case determined as if all amounts owed under the senior secured
convertible promissory notes were converted and (ii) 100% of the maximum number of shares of common stock issuable upon exercise
of the warrants, in each case, determined as if the outstanding warrants were exercised in full.

 

	Name
    of Selling 

    Shareholder	 	Number
    of 

    Shares of 

    Common Stock 

    Owned Prior to 

    Offering	 	Maximum
    Number of

    Shares of Common

    Stock to be Sold 

    Pursuant to this 

    Offering	 	Number
    of Shares of

    Common Stock 

    Owned After Offering
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

    	 	D-1	 

    	 

    

 

PLAN
OF DISTRIBUTION

 

We
are registering the shares of common stock issuable upon d the exercise of the warrants to permit the resale of these shares of
common stock by the holder of these securities from time to time after the date of this prospectus. We will not receive any of
the proceeds from the sale by the selling shareholder of the shares of common stock. We will bear all fees and expenses incident
to our obligation to register the shares of common stock.

 

The
selling shareholder may sell all or a portion of the shares of common stock held by them and offered hereby from time to time
directly or through one or more underwriters, broker-dealers or agents. If the shares of common stock are sold through underwriters
or broker-dealers, the selling shareholders will be responsible for underwriting discounts or commissions or agent’s commissions.
The shares of common stock may be sold in one or more transactions at fixed prices, at prevailing market prices at the time of
the sale, at varying prices determined at the time of sale or at negotiated prices. These sales may be effected in transactions,
which may involve crosses or block transactions, pursuant to one or more of the following methods:

 

	 	●	on
    any national securities exchange or quotation service on which the securities may be listed or quoted at the time of sale;
	 	 	 
	 	●	in
    the over-the-counter market;
	 	 	 
	 	●	in
    transactions otherwise than on these exchanges or systems or in the over-the-counter market;
	 	 	 
	 	●	through
    the writing or settlement of options, whether such options are listed on an options exchange or otherwise;
	 	 	 
	 	●	ordinary
    brokerage transactions and transactions in which the broker-dealer solicits purchasers;
	 	 	 
	 	●	block
    trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block
    as principal to facilitate the transaction;
	 	 	 
	 	●	purchases
    by a broker-dealer as principal and resale by the broker-dealer for its account;
	 	 	 
	 	●	an
    exchange distribution in accordance with the rules of the applicable exchange;
	 	 	 
	 	●	privately
    negotiated transactions;
	 	 	 
	 	●	short
    sales made after the date the Registration Statement is declared effective by the SEC;
	 	 	 
	 	●	agreements
    between broker-dealers and the selling shareholders to sell a specified number of such shares at a stipulated price per share;
	 	 	 
	 	●	a
    combination of any such methods of sale; and
	 	 	 
	 	●	any
    other method permitted pursuant to applicable law.

 

The
selling shareholder may also sell shares of common stock under Rule 144 promulgated under the Securities Act of 1933, as amended,
if available, rather than under this prospectus. In addition, the selling shareholder may transfer the shares of common stock
by other means not described in this prospectus. If the selling shareholders effect such transactions by selling shares of common
stock to or through underwriters, broker-dealers or agents, such underwriters, broker-dealers or agents may receive commissions
in the form of discounts, concessions or commissions from the selling shareholder or commissions from purchasers of the shares
of common stock for whom they may act as agent or to whom they may sell as principal (which discounts, concessions or commissions
as to particular underwriters, broker-dealers or agents may be in excess of those customary in the types of transactions involved).
In connection with sales of the shares of common stock or otherwise, the selling shareholders may enter into hedging transactions
with broker-dealers, which may in turn engage in short sales of the shares of common stock in the course of hedging in positions
they assume. The selling shareholder may also sell shares of common stock short and deliver shares of common stock covered by
this prospectus to close out short positions and to return borrowed shares in connection with such short sales. The selling shareholders
may also loan or pledge shares of common stock to broker-dealers that in turn may sell such shares.

 

    	 	 D-1	 

    	 

    

 

The
selling shareholder may pledge or grant a security interest in some or all of the warrants or shares of common stock owned by
them and, if they default in the performance of their secured obligations, the pledgees or secured parties may offer and sell
the shares of common stock from time to time pursuant to this prospectus or any amendment to this prospectus under Rule 424(b)(3)
or other applicable provision of the Securities Act amending, if necessary, the list of selling shareholders to include the pledgee,
transferee or other successors in interest as selling shareholders under this prospectus. The selling shareholders also may transfer
and donate the shares of common stock in other circumstances in which case the transferees, donees, pledgees or other successors
in interest will be the selling beneficial owners for purposes of this prospectus.

 

To
the extent required by the Securities Act and the rules and regulations thereunder, the selling shareholder and any broker-dealer
participating in the distribution of the shares of common stock may be deemed to be “underwriters” within the meaning
of the Securities Act, and any commission paid, or any discounts or concessions allowed to, any such broker-dealer may be deemed
to be underwriting commissions or discounts under the Securities Act. At the time a particular offering of the shares of common
stock is made, a prospectus supplement, if required, will be distributed, which will set forth the aggregate amount of shares
of common stock being offered and the terms of the offering, including the name or names of any broker-dealers or agents, any
discounts, commissions and other terms constituting compensation from the selling shareholders and any discounts, commissions
or concessions allowed or re-allowed or paid to broker-dealers.

 

Under
the securities laws of some states, the shares of common stock may be sold in such states only through registered or licensed
brokers or dealers. In addition, in some states the shares of common stock may not be sold unless such shares have been registered
or qualified for sale in such state or an exemption from registration or qualification is available and is complied with.

 

There
can be no assurance that any selling shareholder will sell any or all of the shares of common stock registered pursuant to the
registration statement, of which this prospectus forms a part.

 

The
selling shareholder and any other person participating in such distribution will be subject to applicable provisions of the Securities
Exchange Act of 1934, as amended, and the rules and regulations thereunder, including, without limitation, to the extent applicable,
Regulation M of the Exchange Act, which may limit the timing of purchases and sales of any of the shares of common stock by the
selling shareholder and any other participating person. To the extent applicable, Regulation M may also restrict the ability of
any person engaged in the distribution of the shares of common stock to engage in market-making activities with respect to the
shares of common stock. All of the foregoing may affect the marketability of the shares of common stock and the ability of any
person or entity to engage in market-making activities with respect to the shares of common stock.

 

We
will pay all expenses of the registration of the shares of common stock pursuant to the registration rights agreement, estimated
to be $[______] in total, including, without limitation, Securities and Exchange Commission filing fees and expenses of compliance
with state securities or “blue sky” laws; provided, however, a selling shareholder will pay all underwriting discounts
and selling commissions, if any. We will indemnify the selling shareholder against liabilities, including some liabilities under
the Securities Act in accordance with the registration rights agreements or the selling shareholder will be entitled to contribution.
We may be indemnified by the selling shareholder against civil liabilities, including liabilities under the Securities Act that
may arise from any written information furnished to us by the selling shareholder specifically for use in this prospectus, in
accordance with the related registration rights agreements or we may be entitled to contribution.

 

Once
sold under the registration statement, of which this prospectus forms a part, the shares of common stock will be freely tradable
in the hands of persons other than our affiliates.

 

    	 	D-1STOCKHOLDER
GUARANTY

 

This
Stockholder Guaranty is made as of this 29th day of September, 2017 (this “Guaranty”), by Kevin J. Sylla (“Guarantor”)
in favor of Elliot G. Freier, as trustee of the Elliot G. Freier Revocable Trust U/A 9/6/06 (“Beneficiary”).

 

RECITALS

 

A.
Guarantor is the Executive Chairman and owns or controls directly or indirectly a substantial amount of issued and outstanding
(and rights to acquire) shares of common stock of Foothills Exploration, Inc., a Delaware corporation (the “Company”).

 

B.
The Company has requested that Beneficiary make term loans to the Company in the aggregate principal amount of $250,000 (the “Loan”).

 

C.
Guarantor is entering into this Guaranty to induce Beneficiary to make the Loan to the Company.

 

D.
Guarantor acknowledges and agrees that he has derived and will derive substantial direct and indirect economic benefits from the
Loan being made by Beneficiary to the Company. Guarantor further acknowledges that the Beneficiary would not have agreed to make
the Loan but for the delivery of this Guaranty to Beneficiary.

 

AGREEMENT

 

SECTION
1. Guaranty.

 

Guarantor
absolutely, irrevocably and unconditionally guaranties the full and prompt payment, performance and satisfaction of any and all
Guarantied Obligations (as defined below) owing from time to time. Guarantor agrees that upon written demand by Beneficiary, Guarantor
will forthwith pay, perform or satisfy any Guarantied Obligation not theretofore satisfied by the Company in accordance with Beneficiary’s
instructions. All payments under this Guaranty shall be made free and clear of any and all deductions, withholdings and setoffs,
including withholding on account of taxes. All Guarantied Obligations shall be conclusively presumed to have been created in reliance
of this Guaranty.

 

In
addition, Guarantor hereby agrees to pay any and all out-of-pocket costs and expenses (including, without limitation, reasonable
attorneys’ and other professional fees and expenses) incurred by Beneficiary in connection with (i) the collection of all
sums guaranteed hereunder and (ii) the exercise or enforcement of any rights, powers or remedies of Beneficiary under this Guaranty
or applicable law.

 

The
term “Guarantied Obligations” shall mean all of the following: any and all present and future principal, interest,
loans (including, without limitation, the Loan), indebtedness, liabilities and obligations (whether monetary or non-monetary)
of the Company arising under, relating to or owing under that certain Promissory Note dated of even date herewith (as amended,
supplemented or otherwise modified from time to time, the “Note”) in the aggregate principal amount of $250,000, of
whatever nature, character or description, and any and all agreements, instruments or other documents heretofore or hereafter
executed or delivered in connection with any of the foregoing, in each case whether due or not due, direct or indirect, joint
and/or several, absolute or contingent, voluntary or involuntary, liquidated or unliquidated, determined or undetermined, now
or hereafter existing, amended, renewed, extended, exchanged, restated, refinanced, refunded or restructured, whether or not from
time to time decreased or extinguished and later increased, created or incurred, whether for principal, interest, premiums, fees,
costs, expenses (including, without limitation, attorneys’ fees) or other amounts incurred for administration, collection,
enforcement or otherwise, whether or not arising after the commencement of any proceeding under bankruptcy or insolvency laws
(including, without limitation, post-petition interest) and whether or not allowed or allowable as a claim in any such proceeding,
and whether or not recovery of any such obligation or liability may be barred by any statute of limitations or such Indebtedness,
claim, liability or obligation may otherwise be unenforceable.

 

    	 

     

    

 

SECTION
2. Guaranty Continuing and Irrevocable.

 

Until
the final payment in full in cash of the Guarantied Obligations, Guarantor’s liability under this Guaranty shall be continuing
and irrevocable, irrespective of:

 

(i)
any lack of validity or enforceability of the Note or any of the Guarantied Obligations (or any other agreement or instrument
relating thereto);

 

(ii)
any release, amendment, modification or waiver of, or consent to departure from, any of the Guarantied Obligations, including
without limitation extensions (including extensions beyond and after the original term) of payment or performance dates; or

 

(iii)
any other circumstance which might otherwise constitute a defense available to, or a discharge of, the Company in respect of the
Guarantied Obligations or Guarantor in respect of this Guaranty.

 

SECTION
3. Continued Effectiveness; Reinstatement.

 

Notwithstanding
any termination of this Guaranty, if at any time any payment or performance of any of the Guarantied Obligations (from any source)
is rescinded, repaid or must otherwise be returned by Beneficiary (x) due to or upon the insolvency, bankruptcy or reorganization
of the Company or Guarantor or (y) for any other circumstance, this Guaranty shall continue to be effective or be reinstated,
as the case may be, all as though such payment had not been made.

 

SECTION
4. Subrogation.

 

Until
the final payment and performance in full in cash of the Guarantied Obligations, Guarantor hereby irrevocably waives any claim
or other rights which it may now have or hereafter acquire against the Company that arises from the existence or performance of
Guarantor’s obligations under this Guaranty, including, without limitation, any right of subrogation, reimbursement, exoneration,
contribution, indemnification, or any collateral which Beneficiary now has or hereafter acquires. Any agreement between Guarantor
and the Company which is in any respect contrary to the foregoing shall be null and void and of no force or effect.

 

    	2

     

    

 

SECTION
5. Guaranty Independent; Waivers.

 

(a)
Guarantor agrees that (i) the obligations of Guarantor hereunder are independent of and in addition to the undertakings of the
Company pursuant to the Note, (ii) a separate action may be brought to enforce the provisions hereof whether the Company is a
party in any such action or not, (iii) Beneficiary may at any time, or from time to time, and without impairing the liability
of Guarantor for the Guarantied Obligations: (A) extend or change the time of payment and/or performance and/or the manner, place
or terms of payment and/or performance of all or any of the Guarantied Obligations; (B) settle or compromise with the Company,
and/or any other person liable thereon, any and all of the Guarantied Obligations, and/or subordinate the payment of same, or
any part thereof, to the payment of any other debts or claims, which may at any time be due or owing to Beneficiary and/or any
other person or corporation; and (C) release any person liable in respect of the Guarantied Obligations or terminate any security
interest or credit securing, or credit support for, the Guarantied Obligations; and (iv) Beneficiary shall be under no obligation
to marshal any assets or sources of payment in favor of Guarantor or in payment of any or all of the Guarantied Obligations.

 

(b)
GUARANTOR HEREBY IRREVOCABLY WAIVES (i) presentment, demand, protest, notice of acceptance, notice of dishonor, notice of nonperformance
and any other notice with respect to any of the Guarantied Obligations and this Guaranty, and promptness in commencing suit against
any party thereto or liable thereon, and/or in giving any notice to or making any claim or demand hereunder upon Guarantor, (ii)
any right to require Beneficiary to (A) proceed against the Company or any other person, (B) proceed against or exhaust any security
held from the Company or any other person, or (C) pursue any remedy in Beneficiary’s power whatsoever, in any case; (iii)
any defense arising by reason of any disability or other defense of the Company or by reason of the cessation from any cause whatsoever
of the liability of the Company other than full and indefeasible payment, performance and satisfaction of the Guarantied Obligations;
(iv) all rights and defenses arising out of an election of remedies by Beneficiary; (v) to the fullest extent permitted by law,
all rights and benefits otherwise accorded a surety under law (including without limitation the California Civil Code and the
California Code of Civil Procedure).

 

(c)
In addition, Guarantor irrevocably waives all defenses that at any time may be available to Guarantor by virtue of any valuation,
stay, moratorium or other law now or hereafter in effect, and ALL RIGHTS AND DEFENSES THAT ARE OR MAY BECOME AVAILABLE TO GUARANTOR
BY REASON OF SECTIONS 2787 TO 2855, INCLUSIVE, AND SECTION 3433 OF THE CALIFORNIA CIVIL CODE, AND ANY SIMILAR LAWS OF ANY OTHER
STATE OR JURISDICTION.

 

SECTION
6. Representations and Warranties.

 

Guarantor
hereby represents and warrants that (a) Guarantor has the full legal right to enter into this Guaranty and this Guaranty, when
delivered to Beneficiary, will constitute a legal, valid and binding obligation against Guarantor, enforceable against Guarantor
in accordance with its term, (b) this Guaranty does not conflict with any of Guarantor’s other contractual or other obligations
and (c) Guarantor has received and reviewed the Note and is familiar with the terms thereof and consents thereto.

 

    	3

     

    

 

SECTION
7. No Implied Waiver; Remedies Cumulative.

 

No
failure on the part of Beneficiary to exercise and no delay in exercising any right or remedy hereunder shall operate as a waiver
thereof; nor shall Beneficiary be estopped to exercise any such right or remedy at any future time because of any such failure
or delay; nor shall any single or partial exercise of any right or remedy hereunder preclude any other or further exercise thereof
or the exercise of any other right or remedy. The remedies herein provided are cumulative and not exclusive of any remedies provided
by law.

 

SECTION
8. Successors and Assigns; Transferability.

 

This
Guaranty is a continuing guaranty and shall be binding upon Guarantor, and inure to the benefit of and be enforceable by Beneficiary
and its successors, transferees and assigns. Without limiting the generality of the foregoing, Beneficiary may assign or otherwise
transfer the Note to any other entity or third party, and such other entity or third party shall thereupon become vested with
all the rights in respect thereof granted to Beneficiary herein or otherwise. However, this Guaranty may not be assigned, revoked
or amended by Guarantor without Beneficiary’s prior written consent, and this Guaranty shall be unaffected by any substitution
of obligors herein or of the Company under the Note.

 

SECTION
9. No Duty.

 

Guarantor
assumes the responsibility for keeping informed of the financial condition of the Company and of all other circumstances bearing
upon the risk of nonpayment or nonperformance of the Guarantied Obligations, and agrees that Beneficiary shall have no duty to
advise Guarantor of any information known to Beneficiary regarding any such financial condition or circumstances.

 

SECTION
10. Bankruptcy of the Company.

 

Notwithstanding
any modification, discharge or extension of the Guarantied Obligations or any amendment, modification, stay or cure of Beneficiary’s
rights which may occur in any bankruptcy or reorganization case or proceeding concerning the Company, whether permanent or temporary,
and whether or not assented to by Beneficiary, Guarantor hereby agrees that it shall be obligated hereunder to pay and perform
the Guarantied Obligations and discharge its other obligations in accordance with the terms of the Guarantied Obligations and
terms of this Guaranty. Guarantor understands and acknowledges that by virtue of this Guaranty, it has specifically assumed any
and all risks of a bankruptcy or reorganization case or proceeding with respect to the Company.

 

    	4

     

    

 

SECTION
11. Governing Law.

 

THIS
GUARANTY SHALL BE GOVERNED AND CONTROLLED AS TO ITS VALIDITY, ENFORCEMENT, INTERPRETATION, CONSTRUCTION, EFFECT, AND IN ALL OTHER
RESPECTS BY THE STATUTES, LAWS, AND JUDICIAL DECISIONS OF THE STATE OF COLORADO, IRRESPECTIVE OF ITS CONFLICTS OF LAWS RULES.

 

SECTION
12. Notices.

 

All
notices under this Guaranty shall, whether or not so stated, be in writing, and if not so in writing shall not be deemed to have
been given, and be either personally delivered, sent by pre-paid one day or overnight express mail, in a securely enclosed and
sealed envelope, or sent by facsimile (if receipt of same is confirmed by the sender’s facsimile equipment), to the following
addresses:

 

	 	(i)	If
    to Guarantor:
	 	 	 
	 	 	Kevin
    J. Sylla
	 	 	22287
    Mulholland Hwy, #350
	 	 	Calabasas,
    CA 91302
	 	 	Facsimile
    # (720) 449-7479
	 	 	 
	 	(ii)	If
    to Beneficiary:
	 	 	 
	 	 	Elliot
    G. Freier, trustee
	 	 	1800
    Avenue of the Stars #900
	 	 	Los
    Angeles, CA 90067
	 	 	Facsimile
    # 310-556-5255

 

The
addresses of Beneficiary and Guarantor may be changed from time to time by written notice to the other party given in the same
manner. Any notice so served upon or sent to Guarantor or Beneficiary in the manner aforesaid shall be deemed sufficiently given
for all purposes hereunder on the earlier of actual receipt or two business days following delivery to any nationally recognized
overnight courier service, except that notices of changes of address shall not be effective until actual receipt.

 

SECTION
13. Miscellaneous.

 

(a)
This Guaranty is intended as a final expression of this agreement of guaranty and is intended as a complete and exclusive statement
of the terms of this agreement. No course of prior dealings between Guarantor and Beneficiary, no usage of the trade, and no parol
or extrinsic evidence of any nature, shall be used or be relevant to supplement, explain, contradict or modify the terms and/or
provisions of this Guaranty.

 

(b)
No amendment or waiver of any provisions of this Guaranty nor consent to any departure by Guarantor therefrom shall in any event
be effective unless the same shall be in writing and signed by Beneficiary, and then such waiver or consent shall be effective
only in the specific instance and for the specific purpose for which given. No notice to or demand on Guarantor shall in any case
entitle it to any other or further notice or demand in similar or other circumstances.

 

    	5

     

    

 

(c)
If any term, provision, covenant or condition hereof or any application thereof is held by a court of competent jurisdiction to
be invalid, void or unenforceable, all other provisions, covenants and conditions hereof, and all applications thereof not held
invalid, void or unenforceable, shall continue in full force and effect and shall in no way be affected, impaired or invalidated
thereby.

 

(d)
This Guaranty may be executed in any number of counterparts and by different parties in separate counterparts, each of which when
so executed and delivered shall be deemed to be an original and all of such counterparts taken together shall constitute but one
and the same instrument. Section headings in this Guaranty are included for convenience of reference only and do not constitute
a part of this Guaranty for any other purpose.

 

(e)
Guarantor agrees to take all actions necessary to enable the Company to observe and perform, and to refrain from taking any action
which would prevent the Company from observing and performing, the Guarantied Obligations.

 

(f)
Guarantor knowingly and voluntarily waives any claim against Beneficiary (whether for damages, injunction, reformation, rescission,
or otherwise) that Guarantor was fraudulently or otherwise wrongfully induced to enter into this Guaranty, or on the grounds enumerated
in (or similar to) Section 1565 through 1580, and Sections 1688, 1689, 1691, 1692 and 1693, of the California Civil Code (an any
similar laws applicable in any other state or jurisdiction), arising in connection with the circumstances surrounding the negotiation,
execution and delivery of this Guaranty.

 

(g)
GUARANTOR AND, BY ACCEPTANCE HEREOF, BENEFICIARY EACH HEREBY WAIVES THE RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED
UPON, OR RELATED TO, THE SUBJECT MATTER OF THIS GUARANTY. THIS WAIVER IS KNOWINGLY, INTENTIONALLY AND VOLUNTARILY MADE BY GUARANTOR,
AND GUARANTOR ACKNOWLEDGES THAT NEITHER BENEFICIARY NOR ANY PERSON ACTING ON BEHALF OF BENEFICIARY HAS MADE ANY REPRESENTATIONS
OF FACT TO INDUCE THIS WAIVER OF JURY TRIAL. GUARANTOR ACKNOWLEDGES THAT (i) IT BARGAINED AT ARM’S LENGTH AND IN GOOD FAITH,
WITHOUT DURESS, (ii) THAT THE PROVISIONS HEREOF SHALL BE SUBJECT TO NO EXCEPTIONS WHATEVER, (iii) THAT IT HAS BEEN REPRESENTED
(OR HAS HAD THE OPPORTUNITY TO BE REPRESENTED) IN THE NEGOTIATION, EXECUTION AND DELIVERY OF THIS GUARANTY AND IN THE MAKING OF
THIS WAIVER BY INDEPENDENT LEGAL COUNSEL SELECTED OF ITS OWN FREE WILL AND (iv) THAT IT HAD THE OPPORTUNITY TO DISCUSS THIS WAIVER
WITH SUCH COUNSEL.

 

(h)
Time is of the Essence. Time is of the essence with respect to all obligations of Guarantor herein.

 

    	6

     

    

 

IN
WITNESS WHEREOF, the undersigned has duly executed and delivered this Guaranty in favor of Beneficiary as of the date first above
written.

 

	 	GUARANTOR
	 	 
	 	 
	 	Kevin
    J. Sylla

 

    	7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00275-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00275-of-00352.parquet"}]]