Document:

EXHIBIT 10.30

 

FIRST
AMENDMENT TO OPTION AGREEMENT

 

This
First Amendment (this “First Amendment”) to the Option Agreement (as defined below), is made and entered
into on September 15, 2020, to be effective on August 13, 2020 (the “Effective Date”), by TORCHLIGHT
ENERGY, INC., a Texas corporation, and TORCHLIGHT HAZEL, LLC, a Texas limited liability company, whose mailing address
is 5700 W. Plano Pkwy #3600, Plano, TX 75093 and email address is john@torchlightenergy.com (collectively “Torchlight”),
MASTERSON HAZEL PARTNERS, LP, a Texas limited partnership whose mailing address is P.O. Box 1189, Midland, TX 79702 and
email address is ced@mastersonps.com (“Masterson”), and McCabe Petroleum Corporation, a Texas Corporation,
whose mailing address is 500 W. Texas Ave. Ste. 890, Midland, TX 79701 and email address is gregmccabe@aol.com (“MPC”)
collectively the “Parties”.

 

RECITALS:

 

A.       The
Parties entered into that certain Option Agreement, dated August 13, 2020.

 

B.       The
undersigned, which constitute all of the Parties to the Option Agreement, desire to amend the Option Agreement.

 

AGREEMENT:

 

NOW,
THEREFORE, in consideration of the mutual agreements herein contained and for other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the undersigned hereby agree to amend the Option Agreement as follows, effective
as of the Effective Date:

 

1.       Masterson
will pay to Torchlight $1,000.00 at the time this First Amendment is executed and delivered as further consideration of the Options.

 

2.       Section
II of the Option Agreement is hereby deleted in its entirety and replaced with the following:

 

II
- Option Period

 

The
time during which Masterson may exercise the Options shall be from the Effective Date through and including February 3, 2021,
unless extended under the terms of this Option Agreement (the “Option Period”). The Option Period may
be extended to the earlier of (1) May 31, 2021 or (2) the Final Maturity Date (as defined below) of the notes set forth in
Exhibit A attached hereto (the “Notes”), if Masterson: (a) has satisfied it obligations regarding the
Well; (b) no later than February 3, 2021, delivers notice of intent to conduct operations sufficient to satisfy the Northern
Drilling Obligations; and (c) on before February 17, 2021 conducts operations sufficient to satisfy the Northern Drilling
Obligations. The “Final Maturity Date” shall be defined as the date upon which the first of the Notes
becomes due and payable.

    
	FIRST AMENDMENT TO OPTION AGREEMENT	- Page 1 -

 

     

    

3.       Except
as amended by this First Amendment, the Option Agreement shall remain in full force and effect, and each of the undersigned hereby
restates and reaffirms all of the terms and provisions of the Option Agreement.

 

4.       This
First Amendment may be executed in any number of counterparts (including by facsimile or other reliable electronic means), each
of which shall be considered an original.

 

[Signature
pages follow.]

    
	FIRST AMENDMENT TO OPTION AGREEMENT	- Page 2 -

 

     

    

The
First Amendment to the Option Agreement has been executed as of the Effective Date set forth above.

 

	 	TORCHLIGHT ENERGY, INC.
	 	 	 
	 	X:	/s/
    John A. Brda
	 	Name: 	John
    A. Brda
	 	Title:	CEO

 

	STATE
    OF TEXAS	§
	 	§
	COUNTY
    OF COLLIN	§

 

BEFORE
ME, the undersigned authority, on this day personally appeared John A. Brda, who being duly sworn, upon oath, says that he is
authorized to execute this agreement; and he acknowledged to me that he executed the same for the purposes and considerations
therein expressed, and in the capacity stated herein. SUBSCRIBED AND SWORN TO before me by the said Chief Executive Officer on
this the 21st day of September, to certify which witness my hand and seal of office.

 

	 	/s/ Anna Karlsen
	 	Notary Public 
	 	In and For Said County and State
	 	 	 
	 	TORCHLIGHT HAZEL, LLC
	 	 	 
	 	X:	/s/
    John A. Brda
	 	Name: 	John
    A. Brda
	 	Title:	CEO

 

	STATE
    OF TEXAS	§
	 	§
	COUNTY
    OF COLLIN	§

 

BEFORE
ME, the undersigned authority, on this day personally appeared John A. Brda, who being duly sworn, upon oath, says that he is
authorized to execute this agreement; and he acknowledged to me that he executed the same for the purposes and considerations
therein expressed, and in the capacity stated herein. SUBSCRIBED AND SWORN TO before me by the said Manager on this the ___
day of September, to certify which witness my hand and seal of office.

 

	 	 
	 	Notary
    Public 
	 	In
    and For Said County and State

    
	FIRST AMENDMENT TO OPTION AGREEMENT	- Page 3 -

 

     

    

	 	MASTERSON HAZEL PARTNERS, LP
	 	 	 
	 	X: 	/s/
    Clifton DuBose, Jr.
	 	Clifton Edwin DuBose, Jr., CEO of Masterson

Hazel Management, LLC, its General Partner

 

	STATE
    OF TEXAS	§
	 	§
	COUNTY
    OF MIDLAND	§

 

BEFORE
ME, the undersigned authority, on this day personally appeared Clifton Edwin DuBose, Jr., who being duly sworn, upon oath, says
that he is authorized to execute this agreement; and he acknowledged to me that he executed the same for the purposes and considerations
therein expressed, and in the capacity stated herein. SUBSCRIBED AND SWORN TO before me by the said CEO on this the _18th_
day of September 2020, to certify which witness my hand and seal of office.

 

	 	/s/ Amy Taylor
	 	Notary Public 
	 	In and For Said County and State
	 	 	 
	 	MCCABE PETROLEUM CORPORATION
	 	 	 
	 	X:	/s/
    Greg McCabe
	 	Name: 	Greg
    McCabe
	 	Title:	President

 

	STATE
    OF TEXAS	§
	 	§
	COUNTY
    OF MIDLAND	§

 

BEFORE
ME, the undersigned authority, on this day personally appeared Greg McCabe, who being duly sworn, upon oath, says that he is authorized
to execute this agreement; and he acknowledged to me that he executed the same for the purposes and considerations therein expressed,
and in the capacity stated herein. SUBSCRIBED AND SWORN TO before me by the said President on this the 18th day of September
2020, to certify which witness my hand and seal of office.

 

	 	/s/
    Amy Taylor
	 	Notary
    Public 
	 	In
    and For Said County and State

    
	FIRST AMENDMENT TO OPTION AGREEMENT	- Page 4 -EXHIBIT 10.31

 

NEITHER
THIS 6% Secured Convertible Promissory Note (THE “NOTE”) NOR THE SECURITIES ISSUABLE IN CONNECTION WITH THIS NOTE
have BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (“ACT”), OR THE SECURITIES LAWS OF ANY STATE. Neither
THIS NOTE nor THE SECURITIES ISSUABLE IN CONNECTION WITH this note MAY BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHOUT REGISTRATION
UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR DELIVERY TO TORCHLIGHT ENERGY RESOURCES, INC. OF AN OPINION OF LEGAL
COUNSEL SATISFACTORY TO TORCHLIGHT ENERGY RESOURCES, INC. THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE ACT OR ANY APPLICABLE
STATE SECURITIES LAWS.

 

6%
Secured Convertible Promissory Note

OF

TORCHLIGHT ENERGY RESOURCES, INC.

 

	NOTE
    NO. ________	September
    18, 2020
	 	 

FOR
VALUE RECEIVED, TORCHLIGHT ENERGY RESOURCES, INC., a Nevada corporation with its principal office located at 5700 Plano Parkway,
Ste. 3600, Plano, Texas 75093 (the “Company” or “Debtor”), unconditionally promises to pay
to McCabe Petroleum Corporation whose address is 500 W Texas Ave, Ste. 890, Midland, Texas 79702, or the registered assignee,
upon presentation of this 6% Secured Convertible Promissory Note (the “Note”) by the registered holder hereof
(the “Registered Holder” or “Holder”) at the office of the Company, the principal amount
of $1,500,000 (“Principal Amount”), together with the accrued and unpaid interest thereon and other sums as
hereinafter provided, subject to the terms and conditions as set forth below. The effective date of execution and issuance of
this Note is September 18, 2020 (“Original Issue Date”).

 

1.        Schedule
for Payment of Principal and Interest. The Principal Amount outstanding hereunder, along with all accrued and unpaid interest
shall be paid in one lump sum payment on or before May 10, 2021 (the “Maturity Date”). All interest on the
Principal Amount outstanding hereunder shall be payable at the rate of 6% per annum and shall be due and payable on the Maturity
Date. Accrual of interest on the outstanding Principal Amount, shall commence on the date of receipt of funds by the Company and
shall continue until payment in full of the outstanding Principal Amount has been made hereunder. The principal and interest so
payable will be paid to the person whose name is registered on the records of the Company regarding registration and transfers
of this Note (the “Note Register”).

 

2.        Payment.
Payment of any sums due to the Holder under the terms of this Note shall be made in United States Dollars by check or wire transfer
at the option of the Company. Payment shall be made at the address last appearing on the Note Register of the Company as designated
in writing by the Holder hereof from time to time. If any payment hereunder would otherwise become due and payable on a day on
which commercial banks in Plano, Texas, are permitted or required to be closed, such payment shall become due and payable on the
next succeeding day on which commercial banks in Plano, Texas, are not permitted or required to be closed (“Business
Day”) and, with respect to payments of Principal Amount, interest thereon shall be payable at the then applicable rate
during such extension, if any. The forwarding of such funds shall constitute a payment of outstanding principal and interest hereunder
and shall satisfy and discharge the liability for principal and interest on this Note to the extent of the sum represented by
such payment. Except as provided in Section 3 hereof, this Note may not be prepaid without the prior written consent of the Holder.

    
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3.        Company’s
Option to Redeem Note. On or after the Original Issue Date, up to 100%, in whole or in part, of the outstanding Principal
Amount of the Note, plus any accrued and unpaid interest, will be subject to redemption at the option of the Company. Additionally,
the Company shall pay the Holder all unpaid interest on the portion of the Principal Amount redeemed that would have been earned
from the Redemption Payment Date (as defined below) through the Maturity Date. Any amount of the Note subject to redemption, as
set forth herein (the “Redemption Amount”), may be redeemed by the Company at any time and from time to time,
upon not less than 10 nor more than 30 days notice to the Holder. The Company shall deliver to the Holder a written Notice of
Redemption (the “Notice of Redemption”) specifying the date for the redemption (the “Redemption Payment
Date”), which date shall be at least 10 but not more than 30 days after the date of the Notice of Redemption (the “Redemption
Period”). A Notice of Redemption shall not be effective with respect to any portion of this Note for which the Holder
has previously delivered a Notice of Conversion (as defined in Section 4(b) below) or for conversions elected to be made by the
Holder pursuant to Section 4 during the Redemption Period. The Redemption Amount shall be determined as if the Holder’s
conversion elections had been completed immediately prior to the date of the Notice of Redemption. On the Redemption Payment Date,
the Redemption Amount must be paid in good funds to the Holder.

 

4.       
Conversion Rights.

 

(a)       Conversion.
If (i) the Company and Meta (as defined in Section 21) do not enter into a Definitive Agreement (as defined in Section 21) by
the later of October 15, 2020 or such later date that is agreed to by the Company and Meta in writing, or (ii) the Company and
Meta enter into a Definitive Agreement but the Transaction (as defined in Section 21) is terminated prior to closing or otherwise
does not close by the Maturity Date of this Note, then at such time and until the Maturity Date, the Holder of this Note will
have the right, at the Holder’s option, to convert up to $500,000 of the remaining Principal Amount, plus all unpaid interest
accrued under the Note (see Section 21(c)), into shares of common stock, par value $.001 per share, of the Company (“Common
Stock”). Any such conversion under this paragraph will occur in the manner and in accordance with Section 4(b) below
(unless earlier paid or redeemed) at the conversion price as set forth below in Section 4(c) (subject to adjustment as described
herein). The right to convert the Principal Amount or interest thereon of this Note called for redemption will terminate at the
close of business on the Business Day prior to the Redemption Payment Date for such Note, unless the Company subsequently fails
to pay the applicable Redemption Amount. The shares of Common Stock to be issued upon conversion under this Section 4 are hereinafter
referred to as the “Conversion Shares”.

 

(b)       Mechanics
of Holder’s Conversion. In the event that the Holder elects to convert any portion of this Note into Common Stock, the
Holder shall give notice of such election by delivering an executed and completed notice of conversion (“Notice of Conversion”)
to the Company. The Notice of Conversion will provide a breakdown in reasonable detail of the Principal Amount and/or accrued
interest that is being converted and state the denominations in which such Holder wishes the certificate or certificates for the
Conversion Shares to be issued. The Registered Holder must surrender this Note to the Company with the Notice of Conversion, unless
such Notice of Conversion is only for accrued interest and no Principal Amount. On each Conversion Date (as hereinafter defined)
and in accordance with its Notice of Conversion, the Company shall make the appropriate reduction to the Principal Amount and/or
accrued interest as entered in its records and shall provide written notice thereof to the Holder within five (5) Business Days
after the Conversion Date. Each date on which a Notice of Conversion is delivered or telecopied to the Company in accordance with
the provisions hereof shall be deemed a Conversion Date (the “Conversion Date”). Pursuant to the terms of the
Notice of Conversion, the Company will issue instructions to its transfer agent as soon as practicable thereafter, to cause to
be issued and delivered to the Holder certificates for the number of full shares of Conversion Shares to which such Holder shall
be entitled as aforesaid and, if necessary, the Company shall cause to be issued and delivered to the Holder a new promissory
note representing any unconverted portion of this Note. The Company shall not issue fractional Conversion Shares upon conversion,
and the number of Conversion Shares to be received by any Holder upon conversion shall be rounded down to the next whole number.
In the case of the exercise of the conversion rights set forth herein the conversion privilege shall be deemed to have been exercised
and the Conversion Shares issuable upon such conversion shall be deemed to have been issued upon the date of receipt by the Company
of the Notice of Conversion. The Holder shall be treated for all purposes as the record holder of the Conversion Shares, unless
the Holder provides the Company written instructions to the contrary.

    
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(c)       Conversion
Price. The Conversion Price of the Common Stock into which the Principal Amount, or the then outstanding interest due thereon,
of this Note is convertible shall be $0.375 per share (subject to adjustment as described herein).

 

(d)       Adjustment
Provisions. The Conversion Price and number and kind of shares or other securities to be issued upon conversion pursuant to
this Note shall be subject to adjustment from time to time upon the happening of certain events while this conversion right remains
outstanding, as follows:

 

(i)       Reclassification.
In case of any reclassification, consolidation or merger of the Company with or into another entity or any merger of another entity
with or into the Company, or in the case of any sale, transfer or conveyance of all or substantially all of the assets of the
Company (computed on a consolidated basis), each Note then outstanding will, without the consent of any Holder, become convertible
only into the kind and amount of securities, cash or other property receivable upon such reclassification, consolidation, merger,
sale, transfer or conveyance by a Holder of the number of shares of Common Stock into which such Note was convertible immediately
prior thereto, after giving effect to any adjustment event.

 

(ii)     Stock
Split, Dividend. If the number of shares of Common Stock outstanding at any time after the date hereof is increased by a subdivision
or split of Common Stock, or by the declaration of a dividend on the Common Stock, which dividend is wholly or partially in the
form of additional shares of Common Stock or any other securities of the Company, then immediately after the effective date of
such subdivision or split-up, or the record date with respect to such dividend, as the case may be, the Conversion Price shall
be appropriately reduced so that the holder of this Note thereafter exchanged shall be entitled to receive the percentage of shares
of Common Stock which such holder would have owned immediately following such action had this Note been exchanged immediately
prior thereto;

 

(iii)     Reverse
Split. If the number of Common Stock outstanding at any time after the date hereof is decreased by a combination of the outstanding
Common Stock or reverse split, then, immediately after the effective date of such combination, the Conversion Price shall be appropriately
increased so that the holder of this Note thereafter exchanged shall be entitled to receive the percentage of shares of Common
Stock which such holder would have owned immediately following such action had this Note been exchanged immediately prior thereto.

    
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(e)       Issuance
of New Note. Upon any partial conversion of this Note, a new promissory note containing the same date and provisions of this
Note shall be issued by the Company to the Holder for the principal balance of this Note and interest which shall not have been
converted or paid. The Holder shall not pay any costs, fees or any other consideration to the Company for the production and issuance
of a new promissory note.

 

(f)        Reservation
of Shares. The Company shall at all times reserve for issuance and maintain available, out of its authorized but unissued
Common Stock, solely for the purpose of effecting the full conversion of the Note, the full number of shares of Common Stock deliverable
upon the conversion of the Note from time to time outstanding. The Company shall from time to time (subject to obtaining necessary
director and stockholder action), in accordance with the laws of the State of Nevada, increase the authorized number of shares
of its Common Stock if at any time the authorized number of shares of its Common Stock remaining unissued shall not be sufficient
to permit the conversion of the Note.

 

5.        Required
Conversion. On or after the Original Issue Date, if the Transaction (as defined in Section 21) closes, then 100% of the
outstanding Principal Amount of the Note will automatically convert immediately prior to such closing. The Conversion Shares subject
to such required conversion are hereinafter referred to as the “Required Conversion Shares”.

 

At
least 3 Business Days prior to the Transaction closing, the Company must deliver to the Registered Holder a written notice of
required conversion (the “Notice of Required Conversion”). The Notice of Required Conversion will provide the
date of closing of the Transaction and a breakdown in reasonable detail of the Principal Amount and interest that is being converted.
The date of closing of the Transaction is deemed the “Required Conversion Date,” on which date and in accordance
with its Notice of Required Conversion, the Company shall make the appropriate reduction to the Principal Amount and interest
as entered in its records. The Registered Holder must surrender this Note to the Company within 1 Business Day of receipt of the
Notice of Required Conversion. Pursuant to the terms of the Notice of Required Conversion, the Company will issue instructions
to its transfer agent to cause to be issued and delivered to the Holder certificates for the number of full shares of Required
Conversion Shares to which such Holder shall be entitled as aforesaid. The Company shall not issue fractional Required Conversion
Shares upon conversion, and the number of Required Conversion Shares to be received by any Holder upon conversion shall be rounded
down to the next whole number. In the case of the required conversion set forth herein, the conversion shall be deemed to have
been effected and the Required Conversion Shares issuable upon such conversion shall be deemed to have been issued upon the Required
Conversion Date. If the closing of the Transaction does not occur (for any reason) after the Notice of Required Conversion is
delivered, the Company shall provide Holder notice of the cancellation of the subject required conversion hereunder and will return
the Note to the Holder as soon as practicable, and the Holder will return the Required Conversion Shares to the Company (if issued)
as soon as practicable.

    
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6.        Representations
and Warranties of the Company. The Company represents and warrants to the Holder that:

 

(a)       Organization.
The Company is validly existing and in good standing under the laws of the state of Nevada and has the requisite power to own,
lease and operate its properties and to carry on its business as now being conducted. The Company is duly qualified to do business
and is in good standing in each jurisdiction in which the character or location of the properties owned or leased by the Company
or the nature of the business conducted by the Company makes such qualification necessary or advisable, except where the failure
to do so would not have a material adverse effect on the Company.

 

(b)       Power
and Authority. The Company has the requisite power to execute, deliver and perform this Note, and to consummate the transactions
contemplated hereby. The execution and delivery of this Note by the Company and the consummation of the transactions contemplated
hereby have been duly authorized by all necessary corporate action on the part of the Company. This Note has been duly executed
and delivered by the Company and constitutes a legal, valid and binding obligation of the Company and is enforceable against the
Company in accordance with its terms except (i) that such enforcement may be subject to bankruptcy, insolvency, moratorium or
similar laws affecting creditors’ rights and (ii) that the remedy of specific performance and injunctive and other forms of equitable
relief are subject to certain equitable defenses and to the discretion of the court before which any proceedings therefor may
be brought.

 

(c)       Approvals.
No authorization, approval or consent of any court, governmental body, regulatory agency, self-regulatory organization, or stock
exchange or market is required to be obtained by the Company for the issuance and sale of the Note and common stock as contemplated
by this Note, except such authorizations, approvals and consents that have been obtained.

 

7.        Events
of Defaults and Remedies. The following are deemed to be an event of default (“Event of Default”) hereunder:
(i) the failure by the Company to pay any installment of interest on this Note as and when due and payable and the continuance
of any such failure for 10 days; (ii) the failure by the Company to pay all or any part of the principal on this Note when and
as the same become due and payable as set forth above, at maturity, by acceleration or otherwise; (iii) the failure of the Company
to perform any conversion of the Note required under this Note and the continuance of any such failure for 10 days; (iv) the failure
by the Company to observe or perform any covenant or agreement contained in this Note and the continuance of such failure for
a period of 30 days after the written notice is given to the Company; (v) the assignment by the Company for the benefit of creditors,
or an application by the Company to any tribunal for the appointment of a trustee or receiver of a substantial part of the assets
of the Company, or the commencement of any proceedings relating to the Company under any bankruptcy, reorganization, arrangement,
insolvency, readjustment of debts, dissolution or other liquidation law of any jurisdiction; or the filing of such application,
or the commencement of any such proceedings against the Company and an indication of consent by the Company to such proceedings,
or the appointment of such trustee or receiver, or an adjudication of the Company bankrupt or insolvent, or approval of the petition
in any such proceedings, and such order remains in effect for 60 days; (vi) the declaration of an event of default or default,
occurring after the Original Issue Date, under any other contract, agreement, debt or obligation of the Company with a monetary
amount in excess of $1,000,000; or (vii) the entry of a judgment against the Company, which is not otherwise appealable, or for
which all appeals have been exhausted and for which the Company has not posted a bond to satisfy the amount of the judgment in
excess of $2,500,000.

    
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8.        The
Holder’s Rights and Remedies upon the Occurrence of an Event of Default. If any Event of Default occurs and is not
otherwise cured, and the Holder shall have provided written notice to the Company, that the full unpaid principal amount of this
Note, together with interest owing in respect thereof, is immediately due and payable, time being of the essence, and said principal
sum shall bear interest from the date of the Event of Default at the rate per annum 4% in excess of the applicable rate of interest
provided in Section 1 (subject to Section 21(c) of this Note). Failure to exercise this option shall not constitute a waiver of
the right to exercise the same in the event of a subsequent Event of Default. If the Note for which the then outstanding principal
amount, together with interest owing in respect thereof, shall have been paid in accordance herewith, the Note shall promptly
be surrendered to or as directed by the Company.

 

9.        Limitation
on Merger, Sale or Consolidation. The Company may not, directly or indirectly, consolidate with or merge into another
person or sell, lease, convey or transfer all or substantially all of its assets (computed on a consolidated basis), whether in
a single transaction or a series of related transactions, to another person or group of affiliated persons, unless either (i)
in the case of a merger or consolidation, the Company is the surviving entity or (ii) the resulting, surviving or transferee entity
expressly assumes by supplemental agreement all of the obligations of the Company in connection with the Note. Upon any consolidation
or merger or any transfer of all or substantially all of the assets of the Company in accordance with the foregoing, the successor
entity formed by such consolidation or into which the Company is merged or to which such transfer is made, shall succeed to, and
be substituted for, and may exercise every right and power of the Company under the Note with the same effect as if such successor
entity had been named therein as the Company, and the Company will be released from its obligations under the Note, except as
to any obligations that arise from or as a result of such transaction.

 

10.       Listing
of Registered Holder of Note. This Note will be registered as to principal amount in the Holder’s name on the books
of the Company at its principal office in Plano, Texas (the “Note Register”), after which no transfer hereof
shall be valid unless made on the Company’s books at the office of the Company, by the Holder hereof, in person, or by attorney
duly authorized in writing, and similarly noted hereon.

 

11.      Registered
Holder Not Deemed a Stockholder.No Holder, as such, of this Note shall be entitled to vote or receive dividends or
be deemed the holder of shares of the Company for any purpose, nor shall anything contained in this Note be construed to confer
upon the Holder hereof, as such, any of the rights of a stockholder of the Company or any right to vote, give or withhold consent
to any corporate action (whether any reorganization, issue of stock, reclassification of stock, consolidation, merger, conveyance
or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise.

    
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12.       Waiver
of Demand, Presentment, Etc. The Company hereby expressly waives demand and presentment for payment, notice of nonpayment,
protest, notice of protest, notice of dishonor, notice of acceleration or intent to accelerate, bringing of suit and diligence
in taking any action to collect amounts called for hereunder and shall be directly and primarily liable for the payment of all
sums owing and to be owing hereunder, regardless of and without any notice, diligence, act or omission as or with respect to the
collection of any amount called for hereunder.

 

13.       Attorney’s
Fees. The Company agrees to pay all costs and expenses, including without limitation reasonable attorney’s fees,
which may be incurred by the Holder in collecting any amount due under this Note.

 

14.       Enforceability.
In case any provision of this Note is held by a court of competent jurisdiction to be excessive in scope or otherwise invalid
or unenforceable, such provision shall be adjusted rather than voided, if possible, so that it is enforceable to the maximum extent
possible, and the validity and enforceability of the remaining provisions of this Note will not in any way be affected or impaired
thereby.

 

15.       Intent
to Comply with Usury Laws. In no event will the interest to be paid on this Note exceed the maximum rate provided by law.
It is the intent of the parties to comply fully with the usury laws of the State of Texas; accordingly, it is agreed that notwithstanding
any provisions to the contrary in this Note, in no event shall such Note require the payment or permit the collection of interest
(which term, for purposes hereof, shall include any amount which, under Texas law, is deemed to be interest, whether or not such
amount is characterized by the parties as interest) in excess of the maximum amount permitted by the laws of the State of Texas.
If any excess of interest is unintentionally contracted for, charged or received under this Note, or in the event the maturity
of the indebtedness evidenced by the Note is accelerated in whole or in part, or in the event that all of part of the Principal
Amount or interest of this Note shall be prepaid, so that the amount of interest contracted for, charged or received under this
Note, on the amount of the Principal Amount actually outstanding from time to time under this Note shall exceed the maximum amount
of interest permitted by the applicable usury laws, then in any such event (i) the provisions of this paragraph shall govern and
control, (ii) neither the Company nor any other person or entity now or hereafter liable for the payment thereof, shall be obligated
to pay the amount of such interest to the extent that it is in excess of the maximum amount of interest permitted by such applicable
usury laws, (iii) any such excess which may have been collected shall be either applied as a credit against the then unpaid principal
amount thereof or refunded to the Company at the Holder’s option, and (iv) the effective rate of interest shall be automatically
reduced to the maximum lawful rate of interest allowed under the applicable usury laws as now or hereafter construed by the courts
having jurisdiction thereof. It is further agreed that without limitation of the foregoing, all calculations of the rate of interest
contracted for, charged or received under the Note which are made for the purpose of determining whether such rate exceeds the
maximum lawful rate of interest, shall be made, to the extent permitted by applicable laws, by amortizing, prorating, allocating
and spreading in equal parts during the period of the full stated term of the Note evidenced thereby, all interest at any time
contracted for, charged or received from the Company or otherwise by the Holders in connection with this Note.

    
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16.      Governing
Law; Consent to Jurisdiction. This Note shall be governed by and construed in accordance with the laws of the State of
Texas without regard to the conflict of laws provisions thereof. In any action between or among any of the parties, whether rising
out of this Note or otherwise, each of the parties irrevocably consents to the exclusive jurisdiction and venue of the federal
and/or state courts located in Collin County, Texas.

 

17.      Amendment
and Waiver. Any waiver or amendment hereto shall be in writing signed by the Holder. No failure on the part of the Holder
to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise by the Holder of any right hereunder preclude any other or further exercise thereof or the exercise of any other rights.
The remedies herein provided are cumulative and not exclusive of any other remedies provided by law.

 

18.      Restrictions
Against Transfer or Assignment. Neither this Note nor any of the shares issuable in connection with this Note may be sold,
transferred, assigned, pledged, hypothecated or otherwise disposed of by the Registered Holder hereof, in whole or in part, unless
and until either (i) the Note or the shares issuable in connection with the Note have been duly and effectively registered for
resale under the Securities Act of 1933, as amended, and under any then applicable state securities laws; or (ii) the Registered
Holder delivers to the Company a written opinion acceptable to the Company’s counsel that an exemption from such registration
requirements is then available with respect to any such proposed sale or disposition. Any transfer of this Note otherwise permissible
hereunder shall be made only at the principle office of the Company upon surrender of this Note for cancellation and upon the
payment of any transfer tax or other government charge connected therewith, and upon any such transfer a new Note will be issued
to the transferee in exchange therefor.

 

19.      Entire
Agreement; Headings. This Note constitutes the entire agreement between the Holder and the Company pertaining to the subject
matter hereof and supersedes all prior and contemporaneous agreements, representations and understandings, written or oral, of
such parties. The headings are for reference purposes only and shall not be used in construing or interpreting this Note.

 

20.      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 recognized overnight delivery service, postage pre-paid,
or sent by email addressed as follows, or to such other address as such party may notify to the other parties in writing:

 

(a)       If
to the Company, to it at the following address:

 

5700
Plano Parkway, Ste. 3600

Plano, Texas 75093

Attn: John Brda, President

Email: john@torchlightenergy.com

 

(b)       If
to Registered Holder, then to the address listed on the front of this Note, unless changed, by notice in writing as provided for
herein.

    
6% Secured Convertible Promissory Note
 Page 8 of 12

     

    

A
notice or communication will be effective (i) if delivered in person or by overnight courier, on the Business Day it is delivered,
(ii) if sent by registered or certified mail, the earlier of the date of actual receipt by the party to whom such notice is required
to be given or three (3) days after deposit in the United States mail and (iii) if sent by email, on the date sent. If any notice
or other communication is sent by email, the party providing such notice shall, no later than the next business day after such
emailed notice is sent, send a written notice by registered or certified mail (return receipt requested) or recognized overnight
delivery service, postage pre-paid.

 

21.      Use
of Proceeds and Security.

 

(a)       Business
Combination Transaction. The Company and Metamaterial Inc., an Ontario business corporation (“Meta”), are
presently negotiating a business combination between the Company and Meta through a merger or other transaction (the “Transaction”),
which Transaction will be effected under the terms and conditions of a definitive agreement between such parties (the “Definitive
Agreement”).

 

(b)       Use
of Proceeds. In connection with the proposed Transaction, the Company shall use the net proceeds from the funds received under
this Note as follows:

 

i.       The
Company will lend $500,000 to Meta pursuant to an 8% Unsecured Convertible Promissory Note (the “First Meta Note”);

 

ii.      The
Company will retain and use $500,000 for general corporate purposes, including without limitation, expenses incurred by the Company
in connection with the Transaction; and

 

iii.     The
Company will deposit $500,000 into an escrow account, to be held in escrow for the benefit of the Company. If the Company and
Meta enter into a Definitive Agreement by the later of October 15, 2020 or such later date that is agreed to by the Company and
Meta in writing, the $500,000 from this escrow account will be released to the Company, and the Company will lend this $500,000
to Meta pursuant to another 8% Unsecured Convertible Promissory Note (the “Second Meta Note”). If the Company
and Meta do not enter into a Definitive Agreement by the later of October 15, 2020 or such later date that is agreed to by the
Company and Meta in writing, the $500,000 from this escrow account will be released to the Holder and deducted from the Principal
Amount outstanding under this Note.

    
6% Secured Convertible Promissory Note
 Page 9 of 12

     

    

(c)       Security.
This Note is secured by the Company’s pledge of the First Meta Note and the Second Meta Note (if issued). If the Company
and Meta do not enter into a Definitive Agreement by the later of October 15, 2020 or such later date that is agreed to by the
Company and Meta in writing, then promptly after that date, the Company will assign to the Holder of this Note the First Meta
Note in full repayment and discharge of $500,000 of the Principal Amount of this Note, and the remaining $500,000 of the Principal
Amount, plus all unpaid interest accrued under the Note, will remain subject to this Note. If a Definitive Agreement is entered
into by the later of October 15, 2020 or such later date that is agreed to by the Company and Meta in writing, but the Transaction
is terminated prior to closing or otherwise does not close by the Maturity Date of this Note, then the Company will assign to
the Holder of this Note both the First Meta Note and Second Meta Note in full repayment and discharge of $1,000,000 of the Principal
Amount of this Note, and the remaining $500,000 of the Principal Amount, plus all unpaid interest accrued under the Note, will
remain subject to this Note.

 

22.      Survival.
The representations, warranties, obligations and covenants of the Company shall survive execution of this Note.

 

IN
WITNESS WHEREOF, Torchlight Energy Resources, Inc. has caused this Note to be duly executed in its corporate name by the manual
signature of its President/CEO.

 

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

    
6% Secured Convertible Promissory Note
 Page 10 of 12

     

    

ANNEX
A

 

NOTICE
OF CONVERSION

 

The
undersigned hereby elects to convert principal and/or interest under the 6% Secured Convertible Promissory Note due May 10, 2021
of Torchlight Energy Resources, Inc., a Nevada corporation (the “Company”), into shares of common stock, $0.001 par
value per share, (the “Common Stock”) of the Company, according to the conditions hereof, as of the date written below.
No fee will be charged to the Holder for any conversion.

 

Conversion
Calculations:

 

	 	Date
    to Effect Conversion:
	 	 
	 	 
	 	Principal
    Amount of 6% Secured Convertible Promissory Note to be Converted:
	 	 
	 	 
	 	Interest
    Amount of 6% Secured Convertible Promissory 
	 	Note
    to be Converted:
	 	 
	 	 
	 	Number
    of Shares of Common Stock to be Issued:
	 	 

 

	 	      	 
	If
    Holder is a Natural Person:	 	If
    Holder is an Entity:
	 	 	 
	Print
    Name:	 	 	Print
    Name of Entity:	 
	 	 	 
	Signature:	 	 	Signature:	 
	 	 	 
	Print
    Name (if joint investment):	 	 	Print
    Name of Signatory: 	 
	 	 	 	 	 	 	 
	Signature:	 	 	Title:	 
	 	 	 
	Telephone
    No.	 	 	Telephone
    No.	 
	 	 	 
	E-mail
    Address:	 	 	E-mail
    Address:	 
	 	 	 
	 	 	 
	Street
    Address	 	Street
    Address
	 	 	 
	City,
    State, Zip	 	City,
    State, Zip
	 	 	 

    
6% Secured Convertible Promissory Note
 Page 11 of 12

     

    

FORM
OF ASSIGNMENT

 

FOR
VALUE RECEIVED, ________________ hereby sells, assigns and transfers to each assignee set forth below all of the rights of the
undersigned under the attached 6% Secured Convertible Promissory Note (the “Note”) with respect to the principal amount
of the Note (plus interest thereon) covered thereby as set forth opposite the name of such assignee:

 

	 	 	Principal
    Amount of
	Name
    of Assignee	Address	Note
    Assigned

 

If
the total principal amount of the Note shall not be assigned, the undersigned requests that a new Note evidencing the balance
of the principal amount due and owing on the Note not so assigned be issued in the name of and delivered to the undersigned.

 

	Dated: 	 	 	Name
    of Holder (Print): 	 
	 	 	 	 	 
	 	 	 	 
	 	 	 	(Signature of Holder)

    
6% Secured Convertible Promissory Note
 Page 12 of 12

     

    

AMENDMENT
TO PROMISSORY NOTE

 

THIS
AMENDMENT TO PROMISSORY NOTE (“Amendment”) dated as of September 22, 2020, is to become affixed to, modify and become
a part of that certain 6% Secured Convertible Promissory Note in the original principal sum of $1,500,000 dated as of September
18, 2020 (“Original Issue Date”), and which promissory note (the “Note”) was made and executed by Torchlight
Energy Resources, Inc., a Nevada corporation (the “Debtor”), and payable to the order of McCabe Petroleum Corporation
(the “Holder”), which Note is due and payable on May 10, 2021 (“Maturity Date”).

 

WHEREAS,
of the Holder and Debtor desire to amend the Note; and

 

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:

 

1.             The Note is amended and modified by amending section 4(a) of the Note so that reference to “October 15, 2020” is changed
to “November 2, 2020.”

 

2.             The Note is amended and modified by amending and restating in its entirety the first paragraph of section 5 as follows:

 

“On
or after the Original Issue Date, if the Transaction (as defined in Section 21) closes, then 100% of the outstanding Principal
Amount of the Note, and all accrued and unpaid interest thereon, will automatically convert immediately prior to such closing,
into shares of Common Stock at the Conversion Price. The shares subject to such required conversion are hereinafter referred to
as the “Required Conversion Shares.””

 

3.             The Note is amended and modified by amending section 21(b)(iii) of the Note so that references to “October 15, 2020”
are changed to “November 2, 2020.”

 

4.             The Note is amended and modified by amending and restating in its entirety section 21(c) as follows:

 

“Security.
This Note is secured by the Company’s pledge of the First Meta Note and the Second Meta Note (if issued). If the Company
and Meta do not enter into a Definitive Agreement by the later of November 2, 2020 or such later date that is agreed to by the
Company and Meta in writing, then promptly after that date, the Company will assign to the Holder of this Note the First Meta
Note in full repayment and discharge from the Principal Amount of this Note an amount equal to $500,000 plus all accrued and unpaid
interest under the First Meta Note, and the remaining $500,000 (less an amount equal to the accrued and unpaid interest under
the First Meta Note) of the Principal Amount, plus all unpaid interest accrued under this Note, will remain subject to this Note.
If a Definitive Agreement is entered into by the later of November 2, 2020 or such later date that is agreed to by the Company
and Meta in writing, but the Transaction is terminated prior to closing or otherwise does not close by the Maturity Date of this
Note, then the Company will assign to the Holder of this Note both the First Meta Note and Second Meta Note in full repayment
and discharge from the Principal Amount of this Note an amount equal to $1,000,000 plus all accrued and unpaid interest under
the First Meta Note and Second Meta Note, and the remaining $500,000 (less an amount equal to the accrued and unpaid interest
under the First Meta Note and Second Meta Note) of the Principal Amount, plus all unpaid interest accrued under this Note, will
remain subject to this Note.”

 

Amendment to Promissory Note – Page 1

     

     

    

5.             All terms and conditions of the Note shall, except as amended and modified by this Amendment, will remain in full force and effect
and all rights, duties, obligations and responsibilities of the Debtor and the Holder shall be governed and determined by the
Note as the same has been amended and modified by this Amendment.

 

6.             THIS AMENDMENT IS TO BE CONSTRUED UNDER THE LAWS OF THE STATE OF TEXAS.

 

7.             This Amendment shall be of no force and effect until receipt and execution of it by the Debtor and the Holder. This Amendment
may be executed in counterparts, each of which shall be deemed an original, but all of which shall be deemed one instrument, by
facsimile signature or by e-mail delivery of a “.pdf” format data file signature of any of the parties, each of which
shall be deemed an original for all purposes.

 

IN
WITNESS WHEREOF, each of the undersigned has executed and delivered this Amendment to the Note as of the date first written above.

 

	 	DEBTOR:
	 	 
	 	TORCHLIGHT
    ENERGY RESOURCES, INC.
	 	 
	 	By: 	/s/
    John Brda	 
	 	 	John
    Brda, President/CEO
	 	HOLDER:
	 	 
	 	MCCABE
    PETROLEUM CORPORATION
	 	 
	 	By:	/s/
    Greg McCabe	 
	 	Printed Name: Greg McCabe	 
	 	Title: President	 
	 	 	 	 

Amendment to Promissory Note – Page 2

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