Meta Materials (MMATQ) CORRESP Correspondence with SEC

Torchlight Energy
Full Cost Ceiling Test
Year Ended December 31, 2012
	12/31/2012
Total Capitalized Costs	$	4,013,576
Less Accumulated DD&A		(551,890	)
Net Capitalized Costs		3,461,686
PV-10 Value of Proved Reserves		3,299,600		Per NSAI Reserve Report
Less Income Tax Effects (Discounted)		(391,000	)	From SMOG Calculation
Plus Unevaluated Costs		577,658		Primarily Coulter #1
Add Back Asset Retirement Obligation		11,521		To Prevent Double Counting
Full Cost Ceiling		3,497,779
Cushion / (Writedown Indicated)		36,093

1

Torchlight Energy
Standardized Measure of Discounted Future Net Cash Flows
Relating to Proved Oil and Gas Reserves
Year Ended December 31, 2012
	After-Tax			W-Out Tax			Diff
Future cash flows		41,103			41,103			-
Future production costs		(12,413	)		(12,413	)		-
Future development costs		(18,755	)		(18,755	)		-
Future net cash flows		9,935			9,935			-
Less Existing Tax Basis		(3,436	)		-			(3,436	)
Less Future Percentage Depletion		(3,606	)		-			(3,606	)
Future Taxable Expense		2,893			-			2,893
Tax at Statutory Rates (35%)		(1,012	)		-			(1,012	)
Future Net Cash Flows Undiscounted		8,923			9,935			(1,012	)
Adjustment for 10% Discount		(6,014	)		(6,635	)		621
Standardized Measure of FNCF		2,909			3,300			(391	)
Ratio of Discounted to Undiscounted		32.6	%		33.2	%		38.6	%

2

Torchlight Energy
Standardized Measure of Discounted Future Net Cash
Flows Relating to Proved Oil and Gas Reserves
Year Ended December 31, 2012
	2012
	($000's)
Future cash flows	$	41,103
Future production costs		(12,413	)
Future development costs		(18,755	)
Future income tax expense		(1,012	)
Future net cash flows		8,923
10% annual discount for estimated
timing of cash flows		(6,014	)
Standardized measure of discounted
future net cash flows	$	2,909

3

Torchlight Energy, Inc.
Discounted Tax Calculation for SMOG
Year Ended December 31, 2012
				Discount											Est Tax											Tax					Discount
				Factor											Basis											Rate					Factor
				10%											$3,436.0											35%					10%
																								Post-Depletion
				Discounted					Future		Estimated		Cumulative		Cumulative			Taxable		Estimated		Cumulative		Taxable		Future		Future			Discounted
	Future			Future			# of		Gross		Percentage		Percentage		Taxable			Income		Depletion		Depletion		Income		Income		Cash Flows			After Tax			# of
	Cash Flows			Cash Flows			Periods		Revenue		Depletion		Depletion		Income			by Year		Deduction		Deduction		by Year		Tax		After Tax			Cash Flows			Periods
12/31/2013	$	(6,065.0	)	$	(5,790.7	)	$	0.5	$	1,064.5	$	-	$	-	$	(9,501.0	)	$	-	$	-	$	-	$	-	$	-	$	(6,065.0	)	$	(5,790.7	)		0.5
12/31/2014		(2,100.8	)		(1,828.4	)		1.5		7,981.3		-		-		(11,601.8	)		-		-		-		-		-		(2,100.8	)		(1,828.4	)		1.5
12/31/2015		3,245.9			2,575.2			2.5		6,888.8		775.0		775.0		(8,355.9	)		-		-		-		-		-		3,245.9			2,575.2			2.5
12/31/2016		3,696.8			2,673.6			3.5		4,641.3		522.1		1,297.1		(4,659.1	)		-		-		-		-		-		3,696.8			2,673.6			3.5
12/31/2017		2,523.4			1,663.6			4.5		3,366.7		378.8		1,675.9		(2,135.7	)		-		-		-		-		-		2,523.4			1,663.6			4.5
12/31/2018		1,866.6			1,121.8			5.5		2,653.5		298.5		1,974.4		(269.1	)		-		-		-		-		-		1,866.6			1,121.8			5.5
12/31/2019		1,443.1			790.6			6.5		2,193.1		246.7		2,221.1		1,174.0			1,174.0		763.1		763.1		410.9		143.8		1,299.3			711.8			6.5
12/31/2020		1,145.9			572.3			7.5		1,870.2		210.4		2,431.5		2,319.9			1,145.9		744.8		1,507.9		401.1		140.4		1,005.5			502.2			7.5
12/31/2021		925.5			421.3			8.5		1,631.0		183.5		2,615.0		3,245.4			925.5		601.6		2,109.5		323.9		113.4		812.1			369.7			8.5
12/31/2022		755.6			313.6			9.5		1,435.6		161.5		2,776.5		4,001.0			755.6		491.1		2,600.7		264.5		92.6		663.0			275.2			9.5
12/31/2023		611.5			231.3			10.5		1,268.0		142.7		2,919.2		4,612.5			611.5		397.5		2,998.1		214.0		74.9		536.6			203.0			10.5
12/31/2024		507.9			175.1			11.5		1,140.7		128.3		3,047.5		5,120.4			507.9		330.1		3,328.3		177.8		62.2		445.7			153.7			11.5
12/31/2025		395.7			124.4			12.5		990.4		111.4		3,158.9		5,516.1			395.7		257.2		3,585.5		138.5		48.5		347.2			109.2			12.5
12/31/2026		326.4			93.5			13.5		898.8		101.1		3,260.0		5,842.5			326.4		21.0		3,606.5		305.4		106.9		219.5			62.9			13.5
12/31/2027		251.0			65.6			14.5		789.7		88.8		3,348.9		6,093.5			251.0		-		3,606.5		251.0		87.9		163.2			42.6			14.5
Remainder		405.5			96.6			15.5		2,289.9		257.6		3,606.5		6,499.0			405.5		-		3,606.5		405.5		141.9		263.6			62.8			15.5
	$	9,935.0		$	3,299.5				$	41,103.5	$	3,606.5	$	3,606.5	$	6,499.0		$	6,499.0	$	3,606.5	$	3,606.5	$	2,892.5	$	1,012.4	$	8,922.6		$	2,908.2
% Disc to Undisc					33.2%																											32.6%

4