Use the following link to view the April 2013 analysis on the commercial and residential markets in Oman as prepared by Cluttons, a leading real estate specialist in the Middle East since the 1970’s.

http://www.oman.cluttons.com/sites/default/files/documents/Oman%20market%20update_April2013.pdf

Regards,

AGORACOM

Omagine, Inc. has today filed with the SEC its quarterly report on Form 10-Q for the period ended March 31, 2013 (the “10-Q Report”).

Below are certain excerpts from the 10-Q Report. The excerpts do not purport to be or represent the full filing. Please use the following link to view the complete text of the 10-Q Report:

http://www.sec.gov/Archives/edgar/data/820600/000101376213000680/form10q.htm

Excerpts from the 10-Q Report:

The Development Agreement

The contract between the Government and Omagine LLC which will govern the design, development, construction, management and ownership of the Omagine Project and the Government’s and Omagine LLC’s rights and obligations with respect to the Omagine Project, is the “Development Agreement” (the “DA”). In order to begin the development of the Omagine Project, it is first necessary that Omagine LLC and the Ministry of Tourism of Oman (“MOT”) sign the DA. The Company has to date experienced numerous DA signing delays with the MOT. For a detailed description of these delays, please see the Registrant’s prior reports filed with the SEC.

Between January and April 2013, discussions were held between and among the Minister of Tourism - His Excellency Ahmed Al-Mahrizi, the Under-Secretary of Tourism - Her Excellency Maitha Al Mahrouqi, the MOT staff, other interested parties, and the shareholders of and attorneys for Omagine LLC. The Omagine LLC shareholders are (i) Omagine, Inc.; (ii) The Office of Royal Court Affairs ("RCA"); (iii) Consolidated Contracting Company S.A. (“CCC-Panama”) and (iv) Consolidated Contractors (Oman) Company LLC (“CCC-Oman”).

On April 22, 2013 the Undersecretary of Tourism, Her Excellency Maitha Al Mahrouqi, informed a representative of the RCA that she had completed her review of the Omagine Project and had turned the matter over to the Minister of Tourism, His Excellency Ahmed Al-Mahrizi.

On April 23, 2013, the Company’s president – Frank Drohan – telephoned His Excellency Ahmed Al-Mahrizi to determine the status of the Omagine Project and of the DA. Mr. Drohan and the Minister had a very pleasant conversation and the Minister once again confirmed to Mr. Drohan that MOT was delighted with the Omagine Project and that “we would be going forward very soon”.

Mr. Drohan informed His Excellency that he would be travelling to New York the following day and that he would return to Oman on May 22nd, but, given the numerous previous delays, it was now necessary for him to have some definitive word from His Excellency which he could communicate to the Omagine shareholders regarding a signing date for the DA. The Minister acknowledged the many delays but said that he had wanted to make certain that the proper planning for the surrounding government provided infrastructure (roads, utilities etc.) was being undertaken by the Municipality of Muscat before he “gave us the green light”. The Minister further indicated that he had been in touch with the proper authorities at the Municipality of Muscat and the Supreme Council for Planning and that he was now satisfied that such infrastructure planning was underway.

Mr. Drohan then inquired of the Minister, “So, Your Excellency, what exactly shall I tell my irate shareholders who are very upset by all the delays regarding the signing date for the DA ?”

The Minister replied: “Tell them Frank, that we will be signing the DA shortly after your return to Oman in May”. Mr. Drohan repeated and confirmed that message with His Excellency, received the same reply from His Excellency, and His Excellency and Mr. Drohan then agreed to meet in Muscat shortly after May 22, 2013.

On April 25, 2013, Mr. Drohan wrote a letter to His Excellency confirming their conversation and informing him that our attorney would deliver a final copy of the DA to His Excellency’s office at MOT.

On May 8, 2013 our attorneys delivered two printed and bound copies the final DA to His Excellency the Minister of Tourism for his review and approval.

Management will return to Oman on May 22, 2013.

The matter of transforming the corporate structure of Omagine LLC from a limited liability company into a joint-stock company (the “Transformation”) prior to signing the DA did not come up during Mr. Drohan’s conversation with the Minister. Management is reliably informed however that the Minister of Tourism had a discussion in April 2013 about Omagine with the Minister of Finance, and although it has not yet been confirmed to us, management believes that the Transformation is now a settled issue and will be done as originally planned and agreed subsequent to the DA signing.

Given the foregoing conversation between Mr. Drohan and the Minister of Tourism (who is the person who will sign the DA for the Omani Government), management is optimistic that the DA will be signed in late May 2013 or more probably shortly thereafter. Notwithstanding the foregoing however, past experience indicates that great caution should be exercised in making any such assumption until the DA is actually signed by His Excellency Ahmed Al-Mahrizi and Omagine LLC. The matters of the Transformation and/or the government provided infrastructure may yet cause further delays but management is now confident that we are nearing a successful conclusion of the long delayed DA signing process.

We strongly caution investors however that we cannot give any assurance whatsoever that the DA will be signed by MOT and Omagine LLC in May 2013 or shortly thereafter until it is actually signed by them.

Regards,

Agoracom

The leading real estate firm in Oman, Savills Oman, released its Q1 2013 Muscat Property Report today:

Regards,

AGORACOM

Dear Omagine Shareholders,

Omagine, Inc. has yesterday filed with the SEC its annual report on Form 10-K for the fiscal year ended December 31, 2012 (the “10-K Report”).

Below are certain excerpts from the 10-K Report. The excerpts to not purport to be or represent the full filing. Please use the following link to view the complete text of the 10-K Report:

http://www.sec.gov/Archives/edgar/data/820600/000101376213000473/form10k.htm

Excerpts from the 10-K Report:

The Development Agreement

Pursuant to the DA as presently agreed, Omagine LLC is obligated, within 12 months after signing the DA, to transform its corporate structure (the “Transformation”) from a limited liability company into a joint-stock company (“Omagine SAOC”).

Over the past many months discussions have been held among the Under-Secretary, her staff and various members of Omagine LLC management and its lawyers regarding the timing of the Transformation, particularly as to whether or not it should occur before signing the DA. The Office of Royal Court Affairs ("RCA"), which is a 25% shareholder of Omagine LLC, has justifiably objected to doing the Transformation prior to signing the DA.

During January 2013, Mr. Suleiman Al-Yahyai, Investment Adviser at RCA, had several conversations with the Minister of Tourism regarding the Omagine Project and the timing of the Transformation. On January 13, 2013, the Minister of Tourism informed Mr. Al-Yahyai that he had discussed the matter with the Under-Secretary, H.E. Maitha, and had instructed her to meet with the Omagine LLC shareholders as soon as possible and to resolve all matters relevant to the DA, including the timing of the Transformation. His Excellency the Minister further confirmed to RCA that MOT regarded the Omagine Project very highly and that he was anxious to see its early implementation.

On February 2, 2013, Mr. Al-Yahyai met with Her Excellency Maitha Al Mahrouqi and her staff to discuss the Transformation issue as well as the delays encountered in signing the DA. Mr. Al-Yahyai has advised us that H.E. Maitha and her staff informed him at the meeting that the Transformation was required before signing the DA because this was a requirement of the Ministry of Finance (“MOF”). Shortly after the meeting we were informed by MOF that, in fact, this is not true.

Mr. Al-Yahyai further advised us that Her Excellency promised to arrange a meeting within one week (by February 9, 2013) with herself and her staff and Mr. Al-Yahyai and Omagine LLC management and their attorneys, to discuss and finalize all matters relevant to the DA. CCC (which is a shareholder in Omagine LLC) had arranged a meeting with MOT for March 16, 2013 but that meeting was abruptly canceled by MOT on March 15^th.

As of the date of this report (8 weeks after Mr. Al-Yahyai’s February 2^nd meeting with H.E. Maitha Al Mahrouqi), and despite our recent repeated – and to date, so far unsuccessful - attempts to be in touch with MOT, we are still awaiting a communication from the Under-Secretary setting the date for the aforementioned meeting.

Our informal communications with other business people in Oman indicate very clearly that they are all experiencing similar difficulties with MOT and with several other Government ministries and governmental authorities. Our efforts to resolve this trivial Transformation issue are ongoing and intensifying and we are presently in contact with several other Ministers and with the office of Royal Court Affairs (which is a 25% shareholder of Omagine LLC) in an effort to conclude this matter and get on with the development of the Omagine Project.

On March 31, 2013, we were informed by Mr. Al-Yahyai that he had met that day with H.E. Nasser Al-Kindy, the Minister of Royal Court Affairs, and had fully briefed His Excellency regarding the inactivity at MOT regarding the Omagine Project. His Excellency Al-Kindy was very surprised by this news since he had been informed two months earlier by H.E. Al-Mahrizi that all was fine with the Omagine Project. Mr. Al-Yahyai informed us that the Minister of RCA (H.E. Al-Kindy) will meet with or call the Minister of Tourism (H.E. Al-Mahrizi) to inform him that unless the Omagine DA is settled soon, he (H.E. Al-Kindy) will be obliged to raise the matter to the “highest authority” in the Sultanate.

It is management’s expectation that if the Transformation is done after we sign the DA, then the DA will probably be signed in the very near future. If however we are required to do the Transformation before signing the DA, then the legal and bureaucratic formalities (which are routine but required) will cause the DA signing to be delayed for several months subsequent to the time this Transformation issue is resolved with MOT. The timing of the Transformation remains unresolved as of the date hereof.

Past experience indicates that caution should be exercised in making any assumptions until the DA is actually signed by the parties. We caution investors that we cannot give any assurance whatsoever that the DA will be signed by the parties until it is actually signed by them.

_____________________________

The Shareholder Agreement (i) estimates that, as of the date of the Shareholder Agreement, the Pre-Development Expense Amount was approximately nine (9) million U.S. dollars, and (ii) defines the Success Fee as being equal to ten (10) million dollars.

As provided for in the Shareholder Agreement, Omagine, Inc. will receive payment in full from Omagine LLC of:

______________________________

Financial Adviser

BNP Paribas S.A. (“BNPP”) is a French global banking group headquartered in Paris, France with its second global headquarters located in London, England. In 2012, BNPP was ranked by Bloomberg and Forbes as the third largest bank in the world as measured by total assets. BNPP was named the 2012 Bank of the Year by The International Financing Review, a leading financial industry publication published by Thomson Reuters.

As previously disclosed (i) Omagine LLC has held discussions with and received letters of interest and “comfort letters” in support of the Omagine Project from some of the largest banks in the MENA Region including three banks in Oman, and (ii) the Company and Omagine LLC have a longstanding relationship with Bank Muscat SAOG ("BankMuscat") which is 30% owned by RCA and is the largest financial institution in Oman.

______________________________

Assuming the DA is signed in the first half of 2013, the Company should be well positioned to benefit from the ongoing real-estate and project financing recovery since, from a timing perspective, Omagine LLC plans to begin a year or more of intensive design and planning activities after the DA is signed, followed by the launch of residential and commercial sales at the Omagine Project. Assuming the DA is signed in the first half of 2013, the launch date for residential and commercial sales would be planned to occur in mid-2014. While management views most of the past delays by the Government as being adverse to the Company’s best interests, it recognizes that the presently ongoing recovery of the project finance and local real estate markets will contribute positively to the Company’s future prospects if the DA is signed in the first half of 2013.

______________________________

Item 11. Executive Compensation.

Officer Compensation

The following table sets forth information relating to the aggregate compensation received by the then current executive officers of the Company for services in all capacities during the Registrant's three fiscal years indicated for (i) the Chief Executive and Financial Officer, and (ii) each then current executive officer of the Company whose total compensation exceeded $100,000 (the foregoing (i) and (ii) being collectively, the “Named Executive Officers”).

Summary Compensation Table

Table of Accrued Unpaid Salary Used to Purchase Common Stock

The following table indicates the amounts of previously accrued but unpaid salary payable utilized in the year indicated by the Named Executive Officer to purchase shares of the Company’s Common Stock via a direct purchase from the Company, an exercise of Stock Options or an exercise of Rights in the Rights Offering.

______________________________

Compensation discussion and analysis

The Board of Directors has long recognized that the Named Executive Officers and the Company’s Independent Director (collectively, the “Company Executives”) have been substantially underpaid for years relative to their talents and to the efforts they expend on the Company’s behalf. The previously disclosed history of the long and frequent delays by the Government of Oman relative to the timely signing the DA have caused hardship both for the Company and for the Company Executives. In order to conserve its cash resources, the Company has frequently suspended the already inadequate compensation arrangements it has with the Company Executives by not paying or partially paying such compensation and accruing the unpaid portions of such compensation on its books as compensation payable. The Company Executives have nevertheless exhibited remarkable resiliency, loyalty to the Company and dedication to their work and have labored diligently, often with little or no compensation, in order to accomplish the Company’s single most important strategic objective of signing the DA with the Government. Also, the Company’s president, its vice-president and its Independent Director have each made loans to the Company during the past few years.

As soon as practicable after Omagine LLC signs the DA with the Government, the Company plans to institute a formal plan for performance based compensation for all its executives and senior staff, including the Company Executives. This intended compensation plan will be designed to align executive compensation with the achievement by the Company of its long-term goals and objectives. Until such time as such plan is implemented however, and given the Company’s current cash restraints, the Company has attempted to incentivize the Company Executives on an ad hoc basis.

Beginning in 2007 and continuing to date, the Company has frequently suspended and accrued salary payments due to its Company Executives who are officers of the Company. From 2010 through 2012, the Company failed, to pay in accordance with its normal payroll procedures a total of $375,000 of salary due to its president & chief executive officer; a total of $132,500 of salary due to its vice-president & secretary; and a total of $150,000 of salary due to its controller & principal accounting officer. Consistent with the Company’s practice in periods prior to 2010, such unpaid salaries were accrued on the Company’s books as salaries payable and portions thereof were sometimes paid at later dates, as and when the Company’s financial circumstances permitted. Significantly, and in a further demonstration of their support of the Company, the Company Executives who are officers of the Company also, from time to time, exchanged portions of the accrued but unpaid salary due them for shares of Common Stock in the Company. None of such share purchases by such Company Executives were executed at preferential prices. In this regard:

· In August 2011, the company’s president exchanged $125,000 of accrued but unpaid salary due to him in order to exercise 100,000 Stock Options held by him at $1.25 per share, and in March 2012 he also exchanged an aggregate of $403,413 of unpaid salary and accrued principal and interest due to him from the Company under a promissory note, in order to exercise 322,730 Rights to purchase 322,730 shares of Common Stock at $1.25 per share in the Company’s recent Rights Offering, and

· In August 2011, the company’s vice-president exchanged $62,500 of accrued but unpaid salary due to him in order to exercise 50,000 Stock Options held by him at $1.25 per share, and in March 2012, he also exchanged an aggregate of $63,088 of unpaid salary and accrued principal and interest due to him from the Company under a promissory note, in order to exercise 50,470 Rights to purchase 50,470 shares of Common Stock at $1.25 per share in the Company’s recent Rights Offering, and

· In July 2010, the company’s controller exchanged $100,000 of accrued but unpaid salary due to him in order to purchase 82,305 shares of the Company’s Common Stock at $1.215 per share, and in March 2012 he also exchanged $31,250 of accrued but unpaid salary due to him in order to exercise 25,000 Rights to purchase 25,000 shares of Common Stock at $1.25 per share in the Company’s recent Rights Offering.

The company’s Independent Director has made loans to the Company totaling $150,000 which are represented by convertible promissory notes.

In an effort to retain the services of the Company Executives (and other Company consultants) which the Company deems critical to its ongoing operations, the Company has issued Stock Options to the Company Executives and to other Company consultants (See: “Equity Compensation Plan Information” and “Employment Agreements and Consulting Agreement” below in this Item 11). In December 2012 the Company extended the expiration date of the January 2012 Stock Options held by the Company Executives.

The Company Executives recognize the extraordinary advance in the Company’s prospects expected to occur if the DA is signed with the Government and the implementation of the Omagine Project as presently conceived is undertaken by Omagine LLC. While they also recognize the extraordinary personal and professional risks, both financial and otherwise, they have undertaken in order to pursue this Company goal, the Company Executives are nevertheless greatly surprised at the excessive length of time taken by the Government’s decision making process and the attendant additional risk incurred by them as a result of those delays.

Should Omagine LLC ultimately fail to sign the DA and move forward with the development of the Omagine Project in Oman, (i) the past several years of under-compensation to the Company Executives will be misused years for them, (ii) the accrued but unpaid compensation payable to the Company Executives will likely be lost, (iii) the shares of the Company’s Common Stock purchased by the Company Executives will likely decline in value, and (iv) the Stock Options held by the Company Executives will likely expire worthless.

If, on the other hand, the efforts of the Company Executives on behalf of the Company are successful and the DA is ultimately signed by Omagine LLC and the Government, it is likely that the past years of under-compensation to the Company Executives will have been a worthwhile sacrifice, that the accrued but unpaid salary payable to the Company Executives will be paid to them, and that the Common Stock and Stock Options held by the Company Executives will become valuable.

In view of the inordinate delays by the Government to date, and the extraordinary efforts, risks and sacrifices undertaken on behalf of the Company by the Company Executives, the Board of Directors has determined that if, and only if, the DA is signed by Omagine LLC and the Government, the Company will then award a one-time cash bonus (a ”DA Success Bonus”) to each of the Company Executives in compensation for the aforesaid efforts, risks and sacrifices so undertaken by them which resulted in the realization of the Company’s primary strategic objective of signing the DA. The amount of each such DA Success Bonus has not yet been determined by the Board of Directors but each such amount is expected to be substantial and commensurate with (a) the value added to the Company as a result of the contribution made by each such Company Executive to the Company’s success in achieving its primary strategic objective of signing the DA with the Government, and (b) the efforts expended by each such Company Executive in attaining that objective.

If Omagine LLC signs the DA with the Government, then in determining its compensation policies and decisions subsequent thereto, the Company shall seek a shareholder advisory vote on its executive compensation policy (including any proposed DA Success Bonus awards) as required by section 14A of the Exchange Act. The Company does not presently have written employment agreements with any of its executive officers (See: “Employment Agreements and Consulting Agreement” below in this Item 11).

Following on from the signing of a Letter of Intent between Omagine LLC and BNP Paribas in January this year, the project is moving towards starting construction, following on from years of design and preparatory work, said Drohan. Once completed the planned US$2.5bn (approx RO962mn), 1mn sq m site on the Seeb beachfront will feature a mix of cultural, heritage, educational, entertainment and residential components.

One of the most prominent design features in the Omagine ITC project will be a chain of seven pearl-shaped buildings which will line the promenade and be used to house exhibitions, performances, arts and crafts displays, and learning centres. The buildings will in time become icons for Oman, said Drohan.

“The seven pearls are really going to be magnificent, they will be the landmark of Oman, a monument to what the country stands for. We studied the top ten landmarks of the world when designing Omagine and we learned that they have to have a soul, they must represent something,” he said.

“This is going to be the best project for the Sultanate of Oman and people will flock to see it, it will be really fun and interesting. The concept is what you might think of in a theme park but it won’t be pop culture, it will be high culture.”

A key issue the developers and designers were mindful of was the need to capture the imagination of the young generation, which represent the majority of the population, said Drohan. By using the venues on-site as locations for exhibitions and arts, Omagine would help serve the community for years to come, he added.

“If you look at the Middle East region, the biggest problem is in the demography and we want to be able to do something significant. Omagine will have that ‘something’ to inspire young people and it will be a great place for the whole family to visit.

“The board walk will be cool with lots of greenery and a 15,000 seat amphitheatre which will be able to host concerts, performances, events and speeches. It’s going to be a multi-faceted venue. Although it is an integrated tourism complex it’s not necessarily just about hotels and houses, which are not something that people travel far to see. It is a magnificent site.”

Once completed, the site and facilities have the potential to become a sizeable source of job creation for locals, and ‘positive’ initial talks have been held with hospitality firms to move to the hotels planned for the complex, said Drohan.

“The construction process itself will see some thousands of people working on site and once completed will provide many jobs for Oman nationals. Everyone has creative genes and we really want to be able to find or inspire those in Oman who can go on to create the next Google.”

Please be advised that on January 31, 2013, the Company filed an amendment to a registration statement which, among other things, updated the current business narrative for the Company. Please see the excerpt below which speaks about the Development Agreement.

To view the entire filing of the Amendment 1 to the Registration Statement, please follow this link: http://www.sec.gov/Archives/edgar/data/820600/000101376213000142/forms1a.htm

The Development Agreement:

The contract between the Government and Omagine LLC which will govern the design, development, construction, management and ownership of the Omagine Project and the Government’s and Omagine LLC’s rights and obligations with respect to the Omagine Project, is the “Development Agreement” (the “DA”). Although the Development Agreement has been approved by all the required Ministries of the Government of Oman, the Company has nevertheless experienced numerous DA signing delays with the Ministry of Tourism (“MOT”). For a detailed description of these delays, please see the Registrant’s prior reports filed with the SEC.

A new Under-Secretary of Tourism - Her Excellency Maitha Al Mahrouqi - was appointed in early 2012. In Oman, an Under-Secretary is the No. 2 executive in any Ministry, second only to the Minister.

A new Minister of Tourism - His Excellency Ahmed Al-Mahrizi - was appointed on March 1, 2012.

The Minister of Tourism assigned specific responsibility for the Omagine Project to the Under-Secretary and during 2012 a thorough review of the project was undertaken by Her Excellency Maitha Al Mahrouqi and her staff.

Pursuant to the DA as presently agreed, Omagine LLC is obligated, within 12 months after signing the DA, to transform its corporate structure from a limited liability company into a joint-stock company (the “Transformation”). Over the past few months discussions have been held among the Under-Secretary, her staff and various members of Omagine LLC management and its lawyers regarding the timing of the Transformation, particularly as to whether or not it should occur before signing the DA.

The Office of Royal Court Affairs ("RCA"), which is a 25% shareholder in Omagine LLC, has objected to doing the Transformation prior to signing the DA. During January 2013, Mr. Suleiman Al-Yahyai, Investment Adviser at RCA, had several conversations with the Minister of Tourism regarding the Omagine Project and the timing of the Transformation. On January 13, 2013, the Minister informed Mr. Al-Yahyai that he had discussed the matter with the Under-Secretary and had instructed her to meet with the Omagine LLC shareholders as soon as possible and to resolve all matters relevant to the DA, including the timing of the Transformation. His Excellency the Minister further confirmed to RCA that MOT regarded the Omagine Project very highly and that he was anxious to see its early implementation. As of the date hereof we are awaiting a communication from the Under-Secretary setting the date for the aforementioned meeting.

It is management’s expectation that if the Transformation is done after we sign the DA then the DA will probably be signed in the first quarter of 2013 but if we are required to do the Transformation before signing the DA, then the DA signing will be delayed by several months. The timing of the Transformation remains unresolved as of the date hereof. Past experience indicates that caution should be exercised in making any assumptions until the DA is actually signed by the parties. We caution investors that we cannot give any assurance whatsoever that the DA will be signed by the parties until it is actually signed by them.

Best regards,

AGORACOM

The Company has filed its Report on Form 8-K with the SEC today providing today’s press release announcing the signing of a Letter of Intent by its 60% owned subsidiary Omagine LLC and BNP Paribas. Use this link to view the entire Report:

http://www.sec.gov/Archives/edgar/data/820600/000101376213000094/0001013762-13-000094-index.htm

The press release follows below:

Omagine Project

Letter of Intent between Omagine LLC and BNP Paribas

NEW YORK, January 22, 2013 – Omagine, Inc. (OTCQB: OMAG) today announced that its 60% owned subsidiary Omagine LLC, BNP Paribas, Wholesale Banking, Bahrain through its Corporate & Investment Banking department (“BNP Paribas CIB”) and BNP Paribas Real Estate Property and Management LLC (“BNP Paribas Real Estate”) have signed a non-binding letter of intent (“LOI”) memorializing the parties discussion and proposal as set out below with regards to the Omagine Project:

(a) Omagine LLC intends to appoint BNP Paribas CIB as the financial advisor to Omagine LLC and to arrange the financing for the Omagine Project, including evaluating various funding, capital and debt structures available to Omagine LLC; and

(b) Omagine LLC intends to appoint BNP Paribas Real Estate for real estate advisory services to Omagine LLC and to assist Omagine LLC by, among other things, providing a full financial feasibility assessment and a market feasibility study for the Omagine Project. This study will be utilized by BNP Paribas CIB in arranging the project financing.

The Omagine Project is planned to be developed on one million square meters (equal to approximately 245 acres) of beachfront land facing the Gulf of Oman (the "Omagine Site") just west of the capital city of Muscat and approximately six miles from Muscat International Airport. It is presently planned to be an integration of cultural, heritage, educational, entertainment and residential components, including: a "high culture" theme park containing seven pearl shaped buildings, each approximately 60 feet in diameter, associated exhibition buildings, a boardwalk, an open air amphitheater and stage; open space green areas; a canal and an enclosed harbor and marina area; associated retail shops and restaurants, entertainment venues, boat slips, and docking facilities; a five-star resort hotel, a four-star resort hotel and possibly a three or four-star hotel; commercial office buildings; shopping and retail establishments integrated with the hotels, and approximately two thousand residences to be developed for sale.

Frank J. Drohan, president of Omagine, Inc. and Managing Director of Omagine LLC, remarked: “This affiliation with BNP Paribas - the third largest bank in the world - is an extraordinary milestone on the Omagine Project’s path to rapid development. BNP Paribas brings some of the world’s finest, most experienced financial minds. Their task is to achieve the successful financial closing necessary to assure the realization of the Omagine Project. In addition Omagine LLC will be well served by a firm with some of the broadest and deepest MENA Region real-estate experience. We could not be more delighted.”

About Omagine, Inc.

Omagine, Inc. (the Company”) is focused on real-estate, entertainment and hospitality development opportunities in the Middle East and North Africa (“MENA Region”). The Company’s mission is to develop, own and operate innovative projects in the MENA Region which have tourism components that are thematically imbued with culturally aware, historically faithful, and scientifically accurate entertainment experiences.

Governments in the MENA Region are seeking to diversify their economies through projects that create employment and tourism destinations. It is the Company’s opinion that this strategic vision combined with the substantial financial resources in the MENA Region will continue to present superb development opportunities. The Company focuses on the design and development of unique tourism destinations. The Omagine Project is planned to be developed in the Sultanate of Oman.

About Omagine LLC

Omagine LLC is a limited liability company organized under the laws of the Sultanate of Oman to design, develop, finance, construct, manage, own and operate the Omagine Project.

The shareholders of Omagine LLC are: Omagine, Inc. (the Company) (60%); Office of Royal Court Affairs (representing His Majesty Sultan Qaboos, the ruler of Oman) (25%); and Consolidated Contractors International Company, SAL, a multi-national company with $5.5 billion in annual revenue and 120,000 employees worldwide) (15%).

Pursuant to the provisions of an Omagine LLC shareholders’ agreement (the “Shareholder Agreement”), the Omagine LLC shareholders have agreed to invest (i) a cash investment amount of approximately $70.1 million (the “Cash Investment”), plus (ii) an as yet undetermined non-cash “payment-in-kind” amount representing the value of the land constituting the Omagine Site. Pursuant to the terms of the Shareholder Agreement, the Cash Investment will be invested in three stages.

Shareholders, investors or interested parties may also visit the Company’s website at www.omagine.com.

Contact:

Omagine, Inc.

Corporate Inquiries

Charles P. Kuczynski, Vice-President

(212) 563-4141

charles.kuczynski@omagine.com

The Company has filed its Report on Form 10-Q with the SEC for the quarterly period ended September 30, 2012 (the “10-Q Report”). To view the entire filing of the 10-Q Report, follow this link:

http://www.sec.gov/Archives/edgar/data/820600/000101376212002220/form10q.htm

Management has referred us to the following excerpts from the 10-Q Report:

On September 5, 2012, management met to discuss the Omagine Project with Her Excellency Maitha and several newly appointed members of her staff including MOT’s new Director of General Planning. The meeting was quite cordial and businesslike and centered on a discussion of Omagine LLC’s July 1, 2012 letter to, and meeting with, the Minister of Tourism.

Her Excellency acknowledged the past delays, stated that her new staff had some questions, and assured us that MOT’s intent was to deal with the Omagine Project DA in a forthright and expeditious manner. Mr. Drohan suggested an early October signing date for the DA and Her Excellency responded that “she wanted her staff questions to be resolved and perhaps National Day (November 18) would be more appropriate”. Notwithstanding this comment by Her Excellency, no firm signing date for the DA was agreed.

With respect to the discussion of our July 1, 2012 reply letter to the Minister, we made several references during the meeting to the Development Agreement and to the shareholder agreement among the Omagine LLC shareholders (“Shareholder Agreement”).

A staff member in attendance stated that MOT did not have a copy of the Shareholder Agreement. This was incorrect. We explained to Her Excellency that Omagine LLC had delivered a copy of the Shareholder Agreement to MOT in June 2011 and we then offered to deliver another copy to MOT by the following Saturday, September 8th. Her Excellency was pleased with this, asked that we deliver it personally to her, and directed her staff to give us a written reply the next day (September 9) outlining any remaining issues that MOT needed to be resolved before the DA signing.

Shortly after the conclusion of the meeting on September 5th, we received an email from Her Excellency’s staff stating that upon receipt by MOT of the Shareholder Agreement on September 8th, MOT would “send you a letter holding details of our requirements on Wednesday the 12th of September, 2012 instead of Sunday the 9th“. We delivered a copy of the Shareholder Agreement to Her Excellency, the Under-Secretary on September 8th and eleven days later on September 19th we received a letter (the “MOT Letter”) from MOT.

The MOT Letter requests us to deliver a letter to MOT signed by all the shareholders of Omagine LLC specifying that we will not transfer the project without MOT’s approval and a second letter also signed by all the shareholders of Omagine LLC specifying that Omagine LLC will be transformed into Omagine SAOC (a joint-stock company) with the same shareholders as Omagine LLC.

The matters in the MOT Letter are purely of a clerical or legal process nature and, other than the timing of the Transformation, do not constitute or include any matter requiring further negotiation or resolution between the parties.

On September 24, 2012, unsigned drafts of the two simple letters were sent by us to MOT to obtain their prior approval to the language so that no matter in the letters could be later contested by MOT.

On October 1, 2012, in response to our September 30^th follow-up, we were notified by email that MOT was still reviewing the drafts.

On October 2, 2012 our attorney spoke to H.E. Maitha who again reiterated her desire to move the DA process to a rapid conclusion and also promised that she would expedite the approval of the drafts with her staff.

On October 13, we received some immaterial suggested changes to the drafts from MOT.

Later that day on October 13, we notified MOT that we accepted all their suggested changes and promptly signed the letters on behalf of Omagine, Inc., had CCC-Oman sign on behalf of CCC-Oman and sent it to Athens where it was signed by CCC-Panama.

On October 23^rd, we met with RCA and delivered the two letters (signed by CCC and the Company), for signature by RCA whereupon RCA objected to the one letter requiring the Transformation into a joint-stock company before the DA signing. RCA (correctly) stated that this was unnecessary and would merely delay the DA signing. The RCA representative immediately called H.E. Maitha who was unavailable at the time. The eight day EID holiday followed after this.

On November 6^th and November 15^th we spoke to the RCA representative who informed us that he had not yet heard back from H.E. Maitha but that he would contact her after the National Day holidays which ended on November 24, 2012.

On November 14^th we provided MOT with further copies of the Omagine masterplan and other supporting documents which they had requested although these documents and plans were previously provided to the previous MOT staff.

We are awaiting the outcome of the discussions between MOT and RCA relative to the timing of the Transformation before we can advance the project further

The transformation of Omagine LLC into Omagine SAOC is a straightforward legal, clerical and bureaucratic exercise and we have begun this process. Unlike the two letters mentioned above however (the delivery of which is completely within the control of the Omagine LLC shareholders), the corporate transformation requires an amendment to the Shareholder Agreement and a modification to the timing of portions of the investments by the Omagine LLC shareholders because under Omani law joint stock companies require a minimum capitalization of 500,000 Omani Rials and limited liability companies require a minimum capitalization of only 150,000 Omani Rials. In addition, various legal documentation, board resolutions, filings with the Ministry of Commerce & Industry, and announcements in local newspapers are required. Although we have begun the legal documentation process, the remainder of this process cannot now begin until after we receive clarification of the outcome of the MOT / RCA discussion regarding the timing of the Transformation.

It is unclear at the moment whether MOT will agree with RCA and sign the DA prior to the corporate transformation of Omagine LLC into Omagine SAOC. What is clear is that there is no legal barrier to its doing so. We may still have to finalize the transformation of Omagine LLC into Omagine SAOC (a joint stock company) before signing the DA. We are seeking clarification on this matter from both MOT and RCA.

Management remains optimistic that the Government will soon memorialize its agreement to the Final DA in a signed written document but until the aforementioned clarification regarding the Transformation is received from RCA and MOT, we are unable to project a likely signing date. Notwithstanding the foregoing, we caution investors that we are unable at this time to give any assurances whatsoever that the DA will actually be signed by the parties until the parties actually sign the DA. Indeed, past experience strongly indicates that caution should be exercised in making any such assumptions until the DA is actually signed by the parties.

********

In early 2011 His Majesty, the Sultan made changes in various ministries in the Government, including appointing a new Minister of Tourism to fill the vacancy caused by the passing in early 2011 after a long illness of the first Minister of Tourism. That second Minister of Tourism was replaced by a third Minister of Tourism two months later in May 2011 and that third Minister of Tourism was replaced by a fourth Minister of Tourism - the present Minister - in March 2012. Since the Final DA was approved by all parties in mid-2011, management is presently of the opinion that these multiple ministerial changes at the Ministry of Tourism undoubtedly had a delaying impact on the signing of the DA. After meeting with the new Minister of Tourism, His Excellency Al-Mahrizi on July 1, 2012, management remains hopeful that, if the Transformation is not required to be accomplished prior to signing the DA, then the DA will likely be signed in December of 2012. If however the Transformation is required to be accomplished prior to signing the DA, then the DA will not be able to be signed until sometime late in the first quarter of 2013.

********

Sultanate reports surge in gross domestic product and rising budget surplus

Oman’s nominal gross domestic product (GDP) rose 16.2 per cent year-on-year to RO15.2bn ($39.47bn) in the first half of 2012, according to data released by the country’s National Centre for Statistics and Information.

Much of the growth was attributed to rising oil production and prices, with Oman’s oil-based GDP rising 19.9 per cent to RO7.86bn during the surveyed period.

The country’s budget surplus topped RO2.9bn in the first nine months of the year, marking an impressive 320 per cent increase on the RO906m reported in the same period of 2011.

Source: http://www.meed.com/sectors/economy/omans-economy-shows-strong-signs-of-recovery/3159320.article

The Company filed a Current Report on Form 8-K with the Securities and Exchange Commission today, September 24, 2012. Following is the relevant portion of the filing which is an update to shareholders:

Item 8.01 - Other Events

Omagine, Inc. (the "Company") is providing the following information in order to keep our shareholders informed of the occurrence of recent events with respect to the Development Agreement (“DA”).

At our July 1, 2012 meeting with the Minister of Tourism, His Excellency Ahmad Al Mehrzi, the Minister directed us to meet with Her Excellency Maitha Al Mahrouqi, the Under-Secretary of Tourism at the Ministry of Tourism (“MOT”) to whom he had assigned responsibility for the Omagine Project.

On September 5, 2012, management met to discuss the Omagine Project with Her Excellency Maitha Al Mahrouqi and several newly appointed members of her staff including MOT’s new Director General of Planning.

The meeting was quite cordial and businesslike and centered on a discussion of Omagine LLC’s July 1, 2012 letter to, and meeting with, the Minister of Tourism.

Her Excellency acknowledged the past delays, stated that her new staff had some questions, and assured us that MOT’s intent was to deal with the Omagine Project DA in a forthright and expeditious manner. Mr. Drohan suggested an early October signing date for the DA and Her Excellency responded that “she wanted her staff questions to be resolved and perhaps National Day (November 18) would be more appropriate”. Notwithstanding this comment by Her Excellency, no firm signing date for the DA was agreed.

With respect to the discussion of our July 1, 2012 reply letter to the Minister, we made several references during the meeting to the Development Agreement and to the shareholder agreement among the Omagine LLC shareholders (“Shareholder Agreement”).

A staff member in attendance stated that MOT did not have a copy of the Shareholder Agreement. This was incorrect. We explained to Her Excellency that Omagine LLC had delivered a copy of the Shareholder Agreement to MOT in June 2011and we then offered to deliver another copy to MOT by the following Saturday, September 8th. Her Excellency was pleased with this, asked that we deliver it personally to her, and directed her staff to give us a written reply the next day (September 9) outlining any remaining issues that MOT needed to be resolved before the DA signing.

Shortly after the conclusion of the meeting on September 5th, we received an email from Her Excellency’s staff stating that upon receipt by MOT of the Shareholder Agreement on September 8th, MOT would “send you a letter holding details of our requirements on Wednesday the 12th of September, 2012 instead of Sunday the 9th“. We delivered a copy of the Shareholder Agreement to Her Excellency, the Under-Secretary on September 8th and eleven days later on September 19th we received a letter (the “MOT Letter”) from MOT.

The MOT Letter requests us to deliver a letter to MOT signed by all the shareholders of Omagine LLC specifying that we will not transfer the project without MOT’s approval and a second letter also signed by all the shareholders of Omagine LLC specifying that Omagine LLC will be transformed into Omagine SAOC (a joint-stock company) with the same shareholders as Omagine LLC.

Importantly in management’s view, the MOT Letter does not raise any issue to which we have not already previously agreed. The matters in the MOT Letter are purely of a clerical or legal process nature and do not constitute or include any matter requiring further negotiation or resolution between the parties. There is no matter in contention. The MOT Letter is attached hereto as Exhibit 10.1.

We intend to deliver the two letters requested by MOT on or before October 3, 2012.

The transformation of Omagine LLC into Omagine SAOC is also a straightforward legal, clerical and bureaucratic exercise and we have already begun this process. Unlike the two letters mentioned above however (the delivery of which is completely within our control), the corporate transformation requires an amendment to the Shareholder Agreement and a modification to the timing of portions of the investments by the Omagine LLC shareholders because under Omani law joint stock companies require a minimum capitalization of 500,000 Omani Rials and limited liability companies require a minimum capitalization of 150,000 Omani Rials. In addition, various legal documentation, board resolutions, filings with the Ministry of Commerce & Industry, and announcements in local newspapers are required. Hopefully we can accomplish this within the next month or so.

It is unclear at the moment whether MOT will agree to sign the DA with Omagine LLC if it is demonstrated to them that the corporate transformation is underway and will be accomplished promptly after signing the DA as opposed to one year after signing the DA. In all probability, we will have to finalize the transformation of Omagine LLC into Omagine SAOC (a joint stock company) prior to signing the DA. We will seek clarification on this matter if the bureaucratic process of corporate transformation begins to lag as was the case in the summer of 2011when the New Shareholders were introduced into Omagine LLC.

Notwithstanding the foregoing however, we caution investors that we are unable at this time to give any assurance that the DA will actually be concluded or signed by the parties until the parties actually sign the DA. Indeed, past experience strongly indicates that caution should be exercised in making any such assumptions until the DA is actually signed by the parties.

Forward Looking Statements

Certain statements made in this report on Form 8-K are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 and involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance, or achievements of the Company to be materially different from the future results implied by such forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, the Company's actual results could and may differ materially from those set forth or implied in such forward-looking statements. Factors that could cause such differences include but are not limited to the uncertainty associated with Omagine LLC’s ongoing efforts to sign the Development Agreement with the Government of the Sultanate of Oman.

As of mid-day today, the shares are trading 12.63% higher at $2.14 and 70% higher from the August low of $1.25.

The Company's updated financial model presently forecasts net positive cash flows for Omagine LLC of approximately $900 million dollars over the seven year period subsequent to the signing of the Development Agreement, with a net present value of the Omagine Project of approximately $450 million dollars.

RECENT FILING DETAILS DISCUSSION WITH OMAN GOVERNMENT

On August 7th, Omagine (OMAG:OTCBB) filed a 10-Q for the period ended June 30, 2012 outlining - amongst other things - the results of a recent meeting with the Minister of Tourism.

In the filing, the company stated:

Representatives of the shareholders of Omagine LLC (the Company, Royal Court Affairs, and Consolidated Contractors) met on July 1, 2012 for several hours with His Excellency Ahmed Al-Mahrizi and a lawyer for MOT ...

... The meeting concluded with the Minister confirming that he is in agreement with and enthusiastic about the development of the Omagine Project. He also stated that he was entirely satisfied with our project presentation, that he agreed it will be a wonderful project for Oman, that he was completely satisfied with our response to his May 9th Minister’s Letter and that he is agreeable to sign the DA as soon as possible ...

... The Holy Month of Ramadan extends from approximately July 20 to August 20 and is immediately followed by the EID holiday celebration (which in Oman is expected to extend through August 31). Her Excellency Maitha returns on July 26. It is management’s expectation that while we may sign the DA in August, given the occurrence of Ramadan and the EID holiday, the DA signing could be postponed into September or even October 2012. Management is optimistic that the Government will soon memorialize its agreement to the Final DA in a signed written document.

With 14.3 Million shares outstanding, the current market capitalization of the company sits at $30.6 Million.

For those of you that are new to the Omagine story, please find enclosed the following profile:

The Omagine Project

The Company has proposed to the Government of Oman (the "Government") the development of a real-estate and tourism project (the "Omagine Project") to be developed in Oman by Omagine LLC (the "Project Company"). Omagine LLC was formed in Oman as a limited liability company in 2009 for the purpose of designing, developing, owning and operating the entire Omagine Project.

The Omagine Project is planned to be developed on one million square meters (equal to approximately 245 acres) of beachfront land facing the Gulf of Oman (the "Omagine Site") just west of the capital city of Muscat and approximately six miles from Muscat International Airport. It is presently planned to be an integration of cultural, heritage, educational, entertainment and residential components, including: a "high culture" theme park containing seven pearl shaped buildings, each approximately 60 feet in diameter, associated exhibition buildings, a boardwalk, an open air amphitheater and stage; open space green areas; a canal and an enclosed harbor and marina area; associated retail shops and restaurants, entertainment venues, boat slips, and docking facilities; a five-star resort hotel, a four-star resort hotel and possibly a three or four-star hotel; commercial office buildings; shopping and retail establishments integrated with the hotels, and approximately two thousand residences to be developed for sale.

The Company's updated financial model presently forecasts net positive cash flows for Omagine LLC of approximately $900 million dollars over the seven year period subsequent to the signing of the Development Agreement with a net present value of the Omagine Project of approximately $450 million dollars. The Company intends to continually update this model at regular intervals as new facts and information become available, as the development program and design process unfolds and as market conditions require.

Development Agreement

The agreement between the Government and Omagine LLC which will govern the design, development, construction, management and ownership of the Omagine Project is the "Development Agreement" ("DA"). The DA will be the contract between the Government of Oman and Omagine LLC. The Development Agreement has now been approved by all the required Ministries of the Government of Oman.

The Omagine Project and the Omagine DA have received multiple Government approvals over the past several years including at least three written approvals of the project from the Government. In July 2011, after many drafts and several years of negotiations, the Omagine Development Agreement was agreed by Omagine LLC and all required ministries of the Government (the “Final DA”). In September 2011, as requested by the Ministry of Tourism (“MOT”), Omagine LLC registered its new shareholders (see “Shareholder Agreement” below) with the Ministry of Commerce & Industry and, to the best knowledge and belief of the Company and its attorneys, no further barrier to signing the Final DA now exists.

A new Minister of Tourism, His Excellency Ahmed Al-Mahrizi, was appointed on March 1, 2012. Representatives of the shareholders of Omagine LLC (the Company, Royal Court Affairs, and Consolidated Contractors) met on July 1, 2012 for several hours with His Excellency Ahmed Al-Mahrizi and a lawyer for MOT.

The meeting concluded with the Minister confirming that he is in agreement with and enthusiastic about the development of the Omagine Project. He also stated that he was entirely satisfied with our project presentation, that he agreed it will be a wonderful project for Oman, that he is agreeable to sign the DA as soon as possible.

The Shareholder Agreement

In May 2011, Omagine, Inc. and three (3) investors (the “New Shareholders”) signed a shareholders’ agreement dated as of April 20, 2011 with respect to Omagine LLC (the “Shareholder Agreement”).

The Office of Royal Court Affairs ("RCA"), is an Omani organization representing the personal interests of His Majesty, Sultan Qaboos bin Said, the ruler of Oman. Consolidated Contractors International Company, SAL, (“CCIC”) is a 60 year old Lebanese multi-national company headquartered in Athens, Greece. In 2010 CCIC had approximately five and one-half (5.5) billion dollars in annual revenue, one hundred twenty thousand (120,000) employees worldwide, and operating subsidiaries in among other places, every country in the MENA Region. Consolidated Contracting Company S.A. (“CCC-Panama”) is a wholly owned subsidiary of CCIC and is its investment arm. Consolidated Contractors (Oman) Company LLC, (“CCC-Oman”) is an Omani construction company with approximately 13,000 employees in Oman and is CCIC’s operating subsidiary in Oman.

The New Shareholders are (i) RCA, (ii) CCC-Panama and (iii) CCC-Oman.

The ownership percentages of Omagine LLC presently are:

Omagine, Inc.60%

RCA25%

CCC-Panama10%

CCC-Oman5%

Pursuant to the provisions of the Shareholder Agreement, the total amount of cash investment into Omagine LLC by Omagine, Inc. and the New Shareholders will be $70,169,125 and although Omagine, Inc. and the New Shareholders will invest an aggregate of $936,000 of that $70,169,125 before the Financing Agreement Date, 98.7% of such $70,169,125 equal to $69,233,125 (the “Cash Infusion”) will not be invested by the New Shareholders or received by Omagine LLC until the Financing Agreement Date.

The Shareholder Agreement also recognizes the PIK capital contribution to be made by RCA to Omagine LLC as a portion of the payment by RCA for its shares of Omagine LLC. The PIK represents the value to be ultimately assigned to the approximately 245 acres of beachfront land constituting the Omagine Site which His Majesty the Sultan owned and transferred to the Government for the specific purpose of developing it into the Omagine Project. After the DA is signed, the value of the PIK will be determined by a professional valuation expert in accordance with Omani law and with the concurrence of Omagine LLC’s independent auditor, Deloitte & Touche, (M.E.) & Co. LLC.

The Financing Agreement Date is presently projected by management to occur within twelve months after the signing of the DA. If however the financial resources are available to Omagine, Inc., management may choose to trigger the Financing Agreement Date earlier (and therefore the $69,233,125 Cash Infusion) by having Omagine, Inc. make a secured loan to Omagine LLC to finance the first phase of the development of the Omagine Project. The first phase of the development of the Omagine Project is expected to constitute primarily initial design work and its scope and budgeted cost will be decided upon by Omagine LLC shortly after the DA is signed. Pursuant to the provisions of the Shareholder Agreement such a loan from Omagine, Inc. to Omagine LLC would constitute a Financing Agreement Date. Management is presently examining several alternative methods of making such financial resources available to Omagine, Inc.

In order to move into the actual design and development stage of the Omagine Project, Omagine LLC and the Government must first sign the Development Agreement. Notwithstanding the foregoing, no assurance can be given at this time that the Development Agreement actually will be signed.

Please be advised that the foregoing assumptions and this discussion are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 which involve uncertainties and other factors which could cause the outcomes described herein to differ from future Company achievements as expressed or implied by such forward-looking statements.

.

In the filing, the company stated:

Representatives of the shareholders of Omagine LLC (the Company, Royal Court Affairs, and Consolidated Contractors) met on July 1, 2012 for several hours with His Excellency Ahmed Al-Mahrizi and a lawyer for MOT ...

... The meeting concluded with the Minister confirming that he is in agreement with and enthusiastic about the development of the Omagine Project. He also stated that he was entirely satisfied with our project presentation, that he agreed it will be a wonderful project for Oman, that he was completely satisfied with our response to his May 9th Minister’s Letter and that he is agreeable to sign the DA as soon as possible ...

... The Holy Month of Ramadan extends from approximately July 20 to August 20 and is immediately followed by the EID holiday celebration (which in Oman is expected to extend through August 31). Her Excellency Maitha returns on July 26. It is management’s expectation that while we may sign the DA in August, given the occurrence of Ramadan and the EID holiday, the DA signing could be postponed into September or even October 2012. Management is optimistic that the Government will soon memorialize its agreement to the Final DA in a signed written document.

With Ramadan completed on August 18th, investors now appear to be anticipating signing of the Development Agreement as shares of the company closed at $1.74 on Friday with higher than usual volume. The shares closed 10.83% higher on the day and 40% higher from the August low of $1.25.

The Company's updated financial model presently forecasts net positive cash flows for Omagine LLC of approximately $900 million dollars over the seven year period subsequent to the signing of the Development Agreement, with a net present value of the Omagine Project of approximately $450 million dollars.

With 14.3 Million shares outstanding, the current market capitalization of the company sits at $25 Million.

For those of you that are new to the Omagine story, please find enclosed the following profile:

The Omagine Project

The Company has proposed to the Government of Oman (the "Government") the development of a real-estate and tourism project (the "Omagine Project") to be developed in Oman by Omagine LLC (the "Project Company"). Omagine LLC was formed in Oman as a limited liability company in 2009 for the purpose of designing, developing, owning and operating the entire Omagine Project.

The Omagine Project is planned to be developed on one million square meters (equal to approximately 245 acres) of beachfront land facing the Gulf of Oman (the "Omagine Site") just west of the capital city of Muscat and approximately six miles from Muscat International Airport. It is presently planned to be an integration of cultural, heritage, educational, entertainment and residential components, including: a "high culture" theme park containing seven pearl shaped buildings, each approximately 60 feet in diameter, associated exhibition buildings, a boardwalk, an open air amphitheater and stage; open space green areas; a canal and an enclosed harbor and marina area; associated retail shops and restaurants, entertainment venues, boat slips, and docking facilities; a five-star resort hotel, a four-star resort hotel and possibly a three or four-star hotel; commercial office buildings; shopping and retail establishments integrated with the hotels, and approximately two thousand residences to be developed for sale.

The Company's updated financial model presently forecasts net positive cash flows for Omagine LLC of approximately $900 million dollars over the seven year period subsequent to the signing of the Development Agreement with a net present value of the Omagine Project of approximately $450 million dollars. The Company intends to continually update this model at regular intervals as new facts and information become available, as the development program and design process unfolds and as market conditions require.

Development Agreement

The agreement between the Government and Omagine LLC which will govern the design, development, construction, management and ownership of the Omagine Project is the "Development Agreement" ("DA"). The DA will be the contract between the Government of Oman and Omagine LLC. The Development Agreement has now been approved by all the required Ministries of the Government of Oman.

The Omagine Project and the Omagine DA have received multiple Government approvals over the past several years including at least three written approvals of the project from the Government. In July 2011, after many drafts and several years of negotiations, the Omagine Development Agreement was agreed by Omagine LLC and all required ministries of the Government (the “Final DA”). In September 2011, as requested by the Ministry of Tourism (“MOT”), Omagine LLC registered its new shareholders (see “Shareholder Agreement” below) with the Ministry of Commerce & Industry and, to the best knowledge and belief of the Company and its attorneys, no further barrier to signing the Final DA now exists.

A new Minister of Tourism, His Excellency Ahmed Al-Mahrizi, was appointed on March 1, 2012. Representatives of the shareholders of Omagine LLC (the Company, Royal Court Affairs, and Consolidated Contractors) met on July 1, 2012 for several hours with His Excellency Ahmed Al-Mahrizi and a lawyer for MOT.

The meeting concluded with the Minister confirming that he is in agreement with and enthusiastic about the development of the Omagine Project. He also stated that he was entirely satisfied with our project presentation, that he agreed it will be a wonderful project for Oman, that he is agreeable to sign the DA as soon as possible.

The Shareholder Agreement

In May 2011, Omagine, Inc. and three (3) investors (the “New Shareholders”) signed a shareholders’ agreement dated as of April 20, 2011 with respect to Omagine LLC (the “Shareholder Agreement”).

The Office of Royal Court Affairs ("RCA"), is an Omani organization representing the personal interests of His Majesty, Sultan Qaboos bin Said, the ruler of Oman. Consolidated Contractors International Company, SAL, (“CCIC”) is a 60 year old Lebanese multi-national company headquartered in Athens, Greece. In 2010 CCIC had approximately five and one-half (5.5) billion dollars in annual revenue, one hundred twenty thousand (120,000) employees worldwide, and operating subsidiaries in among other places, every country in the MENA Region. Consolidated Contracting Company S.A. (“CCC-Panama”) is a wholly owned subsidiary of CCIC and is its investment arm. Consolidated Contractors (Oman) Company LLC, (“CCC-Oman”) is an Omani construction company with approximately 13,000 employees in Oman and is CCIC’s operating subsidiary in Oman.

The New Shareholders are (i) RCA, (ii) CCC-Panama and (iii) CCC-Oman.

The ownership percentages of Omagine LLC presently are:

Omagine, Inc.60%

RCA25%

CCC-Panama10%

CCC-Oman5%

Pursuant to the provisions of the Shareholder Agreement, the total amount of cash investment into Omagine LLC by Omagine, Inc. and the New Shareholders will be $70,169,125 and although Omagine, Inc. and the New Shareholders will invest an aggregate of $936,000 of that $70,169,125 before the Financing Agreement Date, 98.7% of such $70,169,125 equal to $69,233,125 (the “Cash Infusion”) will not be invested by the New Shareholders or received by Omagine LLC until the Financing Agreement Date.

The Shareholder Agreement also recognizes the PIK capital contribution to be made by RCA to Omagine LLC as a portion of the payment by RCA for its shares of Omagine LLC. The PIK represents the value to be ultimately assigned to the approximately 245 acres of beachfront land constituting the Omagine Site which His Majesty the Sultan owned and transferred to the Government for the specific purpose of developing it into the Omagine Project. After the DA is signed, the value of the PIK will be determined by a professional valuation expert in accordance with Omani law and with the concurrence of Omagine LLC’s independent auditor, Deloitte & Touche, (M.E.) & Co. LLC.

The Financing Agreement Date is presently projected by management to occur within twelve months after the signing of the DA. If however the financial resources are available to Omagine, Inc., management may choose to trigger the Financing Agreement Date earlier (and therefore the $69,233,125 Cash Infusion) by having Omagine, Inc. make a secured loan to Omagine LLC to finance the first phase of the development of the Omagine Project. The first phase of the development of the Omagine Project is expected to constitute primarily initial design work and its scope and budgeted cost will be decided upon by Omagine LLC shortly after the DA is signed. Pursuant to the provisions of the Shareholder Agreement such a loan from Omagine, Inc. to Omagine LLC would constitute a Financing Agreement Date. Management is presently examining several alternative methods of making such financial resources available to Omagine, Inc.

In order to move into the actual design and development stage of the Omagine Project, Omagine LLC and the Government must first sign the Development Agreement. Notwithstanding the foregoing, no assurance can be given at this time that the Development Agreement actually will be signed.

Please be advised that the foregoing assumptions and this discussion are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 which involve uncertainties and other factors which could cause the outcomes described herein to differ from future Company achievements as expressed or implied by such forward-looking statements.

.

MUSCAT — In recent years the property market in Oman has seen strong peaks and troughs, but the future has never looked brighter, according to one of the country’s experts in property investment.

According to Chris Steel, Managing Partner of Savills Oman, there has never been a better time to get into the market. The rationale behind this is simple; properties are starting to show owners net investment returns above prevailing bank interest rates. Combined with high levels of liquidity in the populace and favourable borrowing costs the market has very much bucked the international trend.

In the capital area the residential leasing sector has long been a favoured medium with stand-alone property showing returns of over 5 per cent. With the large percentage of expats only being able to rent, many landlord investors have built impressive investment portfolios over the last 30 years.

Chris Steel has watched the relatively new avenue of investing in ITCs (Integrated Tourism Complexes) open up and with demand far outstripping supply, it is a growth that is likely to continue for many years to come, ‘Original investors at developments such as The Wave, Muscat and Muscat Hills took calculated risks when buying. The gamble paid off and there is now an acute supply shortage at these developments, especially villas that can be leased quickly. In some instances, there are waiting lists from renters for particular property types and landlords are seeing no rental void periods at all between tenant changes. With owner investors achieving high yield returns, it is no wonder that there is virtually no property for re-sale in those developments.’

Savills Oman is the exclusive agent for Muscat’s latest offering in the luxury ITC market, Badr Muscat Hills. “The developers of Badr at Muscat Hills have been acutely wise in how they approached the project. They analysed the target market of both owner-occupier and tenants wanted from the properties and then provided them.

On completion these homes will be in high demand as they provide a sophisticated home with the latest in kitchen design and even their own personal swimming pools, each complimented by a golf course location. Initial rental returns are likely to be in excess of 7 per cent with further growth likely over the shorter term as rental rates increase,” continued Steel.

Source: http://main.omanobserver.om/node/106100

http://www.sec.gov/Archives/edgar/data/820600/000101376212001542/form10q.htm

Management has referred us to the following excerpt from the 10-Q Report:

A new Minister of Tourism, His Excellency Ahmed Al-Mahrizi, was appointed on March 1, 2012. In mid-May Omagine LLC received a letter from His Excellency Ahmed Al-Mahrizi (the “Minister’s Letter”) requesting Omagine LLC to provide certain information to MOT. The Minister’s Letter, which requested documentation on four items, is attached hereto as Exhibit 99.5.

Representatives of the shareholders of Omagine LLC (the Company, Royal Court Affairs, and Consolidated Contractors) met on July 1, 2012 for several hours with His Excellency Ahmed Al-Mahrizi and a lawyer for MOT.

Having been recently appointed in March 2012, the Minister, reasonably enough, was not completely familiar with the concept and scope of the Omagine Project and requested that we update him on the project. The Omagine LLC shareholders described the project in detail and showed His Excellency a video presentation of the project, several drawings, sketches, architectural renderings, site plans and the overall conceptual master plan. A detailed discussion of the genesis and background of the project including the history of our prior negotiations with the MOT then ensued. The Minister was quite pleased with the description and discussion as he was unaware of many of the details until our meeting.

We then presented to His Excellency our written response to the Minister’s Letter along with attachments containing the requested information – including, among other things, six “comfort letters” in support of the Omagine Project from some of the largest banks in the Mena Region – including three banks in Oman. A detailed, open, frank and friendly discussion was then held regarding the Minister’s Letter, our response thereto and the Development Agreement. The Minister was especially pleased to learn that certain matters about which he had concerns as well as all of the matters detailed in the Minister’s Letter were already covered and agreed in the Final DA.

The MOT lawyer in attendance mentioned that we (Omagine) had not yet responded to a list of Ministry of Legal Affairs (“MOLA”) comments sent to us by MOT in early 2011. This was incorrect since, as previously disclosed, we had delivered our response to such MOLA comments by Federal Express to MOT on March 14, 2011. We explained to the Minister and the MOT lawyer that our response to such MOLA comments was indeed delivered to MOT and that such MOLA comments and our responses thereto were subsequently approved by MOT and incorporated into the agreed DA. The Minister was pleased to learn this and asked that we send a copy of our response to the MOLA comments along with a copy of the agreed DA to Her Excellency Maitha Al Mahrouqi, the Under-Secretary of Tourism, to whom he has specifically assigned responsibility for the Omagine Project.

The meeting concluded with the Minister confirming that he is in agreement with and enthusiastic about the development of the Omagine Project. He also stated that he was entirely satisfied with our project presentation, that he agreed it will be a wonderful project for Oman, that he was completely satisfied with our response to his May 9th Minister’s Letter and that he is agreeable to sign the DA as soon as possible.

His Excellency Al Mehrzi stated: "Her Excellency Maitha is on leave for the next 2 weeks but on her return, please get the paperwork organized with her and I am ready to sign the DA during Ramadan".

18

All of the Omagine attendees at the meeting unanimously agreed that the meeting results were excellent and all agreed that His Excellency Ahmad Al Mehrzi is very clearly a talented, intelligent, direct, and very personable man who wants to get things done.

In a prior communication during June, Her Excellency Maitha Al Mahrouqi indicated to us that she would return to work on July 26, 2012. A copy of our March 14, 2011 response to the MOLA comments was sent to Her Excellency Maitha’s office on July 7, 2012 along with a request for a meeting to discuss the Final DA. We expect to hear from Her Excellency toward the end of July regarding the date for such meeting.

The Holy Month of Ramadan extends from approximately July 20 to August 20 and is immediately followed by the EID holiday celebration (which in Oman is expected to extend through August 31). Her Excellency Maitha returns on July 26. It is management’s expectation that while we may sign the DA in August, given the occurrence of Ramadan and the EID holiday, the DA signing could be postponed into September or even October 2012. Management is optimistic that the Government will soon memorialize its agreement to the Final DA in a signed written document.

Notwithstanding the foregoing however, we nevertheless caution investors that we are unable at this time to give any assurances whatsoever that the DA will actually be concluded or signed by the parties until the parties actually sign the DA. Indeed, past experience indicates that caution should be exercised in making any such assumptions until the DA is actually signed by the parties.

Regards,

AGORACOM

The Company filed a Current Report on Form 8-K with the Securities and Exchange Commission today, July 2, 2012. Following is the relevant portion of the filing which is an update to shareholders:

Item 8.01 - Other Events

Omagine, Inc. (the "Company") is providing the following information in order to keep our shareholders informed of the occurrence of material events.

Representatives of the shareholders of Omagine LLC (the Company, Royal Court Affairs, and Consolidated Contractors) met on July 1, 2012 for several hours with the Minister of the Ministry of Tourism (“MOT”), His Excellency Ahmad bin Nasser Al Mehrzi and a lawyer for MOT.

Having been only recently appointed in March 2012, the Minister, reasonably enough, was not completely familiar with the concept and scope of the Omagine Project and requested that we update him on it. We described the project in detail and showed him a video presentation of the project, several drawings, sketches, architectural renderings, site plans and the overall conceptual master plan. We then had a detailed discussion of the genesis and background of the project including the history of our prior negotiations with the MOT. The Minister was quite pleased with the description and discussion as he was unaware of many of the details until our meeting.

As previously disclosed, the Minister had sent us a letter dated May 9, 2012 (the “Minister’s Letter”) containing requests for certain information. We presented our written response to the Minister’s Letter along with attachments containing the requested information – including, among other things, five “comfort letters” from five of the largest banks in the region – including three banks in Oman - in support of the Omagine Project. We then held a detailed discussion regarding the Minister’s Letter, our response thereto and the Development Agreement. The discussions were very open, frank and friendly and the Minister was especially pleased to learn that certain matters about which he had concerns as well as all of the matters detailed in the Minister’s Letter were already covered and agreed in the Development Agreement.

The MOT lawyer in attendance mentioned that we (Omagine) had not yet responded to a list of Ministry of Legal Affairs (“MOLA”) comments sent to us by MOT in early 2011. This was incorrect since, as previously disclosed, we had delivered our response to such MOLA comments by Federal Express to MOT on March 14, 2011. We explained to the Minister and the MOT lawyer that our response to such MOLA comments were indeed delivered to MOT and that such MOLA comments and our responses thereto were subsequently approved by MOT and incorporated into the agreed DA. The Minister was pleased to learn this and asked that we send a copy of our response to the MOLA comments along with a copy of the agreed DA to Her Excellency Maitha Al Mahrooqiyah, the Under-Secretary of Tourism, to whom he has specifically assigned responsibility for the Omagine Project.

The meeting concluded with the Minister confirming that he is in agreement with and enthusiastic about the development of the Omagine Project. He also stated that he was entirely satisfied with our project presentation, that he agreed it will be a wonderful project for Oman, that he was completely satisfied with our response to his May 9th Minister’s Letter and that he is agreeable to sign the DA as soon as possible.

His Excellency Al Mehrzi stated: "Her Excellency Maitha is on leave for the next 2 weeks but on her return, please get the paperwork organized with her and I am ready to sign the DA during Ramadan".

All of the Omagine attendees at the meeting unanimously agreed that the meeting results were excellent and all agreed that His Excellency Ahmad Al Mehrzi is very clearly a talented, intelligent, direct, and very personable man who wants to get things done.

In a prior communication during June, Her Excellency Maitha Al Mahrooqiyah indicated to us that she would return to work on July 26, 2012. We will assemble and deliver to Her Excellency the agreed DA and our March 14, 2011 response to the MOLA comments.

The Holy Month of Ramadan extends from approximately July 20 to August 20 and is immediately followed by the 3 day EID holiday celebration. Her Excellency Maitha returns on July 26. It is management’s expectation that while we may sign the DA in August, given the occurrence of Ramadan and the EID holiday, the DA signing could be postponed into September or even October 2012.

Notwithstanding the foregoing however, we nevertheless caution investors that we are unable at this time to give any assurances whatsoever that the DA will actually be concluded or signed by the parties until the parties actually sign the DA. Indeed, past experience indicates that caution should be exercised in making any such assumptions until the DA is actually signed by the parties.

Forward Looking Statements

Certain statements made in this report on Form 8-K are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 and involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from the future results implied by such forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements – including management’s present expectation and belief that the Development Agreement will be signed by Omagine LLC and the Government - are based on reasonable assumptions, the Company's actual results could differ materially from those set forth or implied in such forward-looking statements. Factors that could cause such differences include but are not limited to the uncertainty associated with Omagine LLC’s ongoing efforts to sign the Development Agreement with the Government of the Sultanate of Oman.

Regards,

AGORACOM

The Company has filed its Report on Form 10-Q with the SEC for the quarterly period ended March 31, 2012 (the “10-Q Report”). To view the entire filing of the 10-Q Report, follow this link:

Management has referred us to the following excerpt from the 10-Q Report: http://sec.gov/Archives/edgar/data/820600/000101376212001236/form10q.htm

“On May 18, 2012, we, RCA and CCC received an email communication from Her Excellency Maitha Al Mahrouqi, the Under-Secretary of Tourism, wherein Her Excellency Maitha informed us that she was traveling outside of Oman and that she looked forward to meeting with us shortly after her return to Oman on May 29, 2012.

We have also received a copy of a letter to Omagine LLC from the Minister of Tourism, His Excellency Ahmed Al Mahrizi (the “Minister’s Letter”). The Minister’s Letter requested Omagine LLC to provide certain information which in management’s opinion has either already (i) been previously provided by us to MOT, or (ii) covered by the agreed terms of the Final DA. In view of our many similar prior experiences with MOT, we do not find this to be unusual. As has frequently been the case in the past, full clarity is only expected to emerge after detailed in person discussions with MOT. At the present time however, it is unclear to us if the Minister’s Letter represents the MOLA Response or if it represents requests by MOT in addition to the MOLA Response, or both. The Minister’s Letter, which requested documentation on 4 items, is attached hereto as Exhibit 10.11. As of the date hereof management does not anticipate any difficulty in providing (a) the documentation required by items (ii) and (iii) of the Minister’s Letter, or (b) the explanatory documentation indicating the parties prior written agreement with respect to items (i) and (iv) of the Minister’s letter. Management presently expects that all 4 matters raised by the Minister’s Letter will be resolved and agreed by MOT and Omagine LLC.

The Minister’s Letter seems to indicate MOT’s anticipated “approval of the Omagine project” and its willingness to “enter into a development agreement for the project”. Notwithstanding the foregoing however, it will be necessary for management and the New Shareholders to meet with Her Excellency Maitha and possibly other MOT staff in person in order to attain absolute clarity in written form before we are able to state with certainty that this process is completed and agreed by all parties. Subsequent to such meeting with Her Excellency Maitha, management will respond in writing to the Minister’s Letter and to the matters, if any, that may be raised by Her Excellency Maitha.

Management views the upcoming meeting with Her Excellency Maitha and the Minister’s Letter as positive indicators of MOT’s desire to conclude the DA process but nevertheless we caution investors that we are unable at this time to give any assurances whatsoever that the DA will actually be concluded or signed by the parties.”

Regards,

Agoracom

The Company has filed an amended report on Form 10-K/A (the “Amended Filing”) to amend its annual report on Form 10-K for the fiscal year ended December 31, 2011 filed with the SEC on April 16, 2012 (the “Original Filing”). The Amended Filing amends the Original Filing in order to, among other things, include the Company’s audited financial statements for the fiscal year ended December 31, 2011 and update certain disclosures.

The Amended Filing speaks as of its filing date of May 17, 2012 and it updates information contained in the Original Filing to reflect material facts or events that have occurred subsequent to the date of the Original Filing.

Management referred us to the following excerpt from the amended report on Form 10-K/A filed on May 17, 2012:

Item 1. Business.

Products, Services, Marketing and Distribution

The Development Agreement

On April 29, 2012 we were informed by the RCA representative that he had spoken to Her Excellency and she stated that she had received the MOLA Response and had written a report to His Excellency Ahmad Al Mehrzi seeking his approval and that as soon as she received that approval she would contact the RCA representative to arrange a meeting with him and the Omagine staff to discuss the MOLA Response, finalize the DA, and arrange for a DA signing date. Once again the RCA representative asked Her Excellency if there were any other issues outstanding other than the modification of the DA clauses pursuant to the MOLA Response to which she had referred. Her Excellency responded that no, there were no other issues outstanding; that Omagine is a good project for the country; that the new minister is urging her to finalize the Omagine DA; and now that she had the MOLA Response about the modified DA clauses, she only had to get His Excellency Ahmad Al Mahrizi’s approval before meeting with us to finalize the DA.

Although there have been extraordinary delays to date by the Government, now that the Final DA has been agreed and MOT has informed RCA that it has received the MOLA Response regarding the proposed changes to certain clauses in the Final DA, management continues to be cautiously optimistic that the Government will soon memorialize its agreement to the DA in a signed written document so that progress in the development of the Omagine Project may be facilitated.

Since the Final DA was approved by all parties in mid-2011, management is presently of the opinion that these multiple ministerial changes at the Ministry of Tourism undoubtedly had a delaying impact on the signing of the DA. Now that the MOLA Response has been received by MOT, management is hopeful that the allegedly minor changes to certain DA clauses will be resolved shortly.

Notwithstanding the foregoing however, management is unable at this time to definitively confirm that MOT’s proposed changes to certain DA clauses are indeed “minor and immaterial” as has been indicated to RCA by MOT, nor can we confirm that such proposed changes will or can be accepted by Omagine LLC. Indeed, past experience indicates that caution should be exercised in making any such assumptions until we meet with MOT and receive the written documents proposing the modified DA clauses

Omagine, Inc. has today filed with the SEC its annual report on Form 10-K for the fiscal year ended December 31, 2011 (the “10-K Report”).

Please use the following link to review the complete text of the 10-K Report:

http://www.sec.gov/Archives/edgar/data/820600/000101376212000858/form10k.htm

See below in this posting for selected excerpts from the 10-K Report which we believe address recent posting inquiries from shareholders. These following excerpts do not purport to be complete and they are qualified in their entirety by reference to the complete text of the 10-K Report.

Regards,

AGORACOM

Excerpts from the 10-K Report:

The Omagine Project and the Omagine DA have received multiple Government approvals over the past several years including at least three (3) written approvals of the project from the Government. In July 2011, after many drafts and several years of negotiations, the Omagine Development Agreement was agreed by Omagine LLC and all required ministries of the Government the (“Final DA”). In September 2011, as requested by the Ministry of Tourism (“MOT”), Omagine LLC registered its new shareholders (see “Shareholder Agreement” below) with the Ministry of Commerce & Industry and, to the best knowledge and belief of the Company and its attorneys, no further barrier to signing the Final DA then existed.

In February 2011, the former Minister of Tourism, with whom the Company had the majority of its dealings regarding the DA, passed away. A new Minister of Tourism was appointed in March 2011 and was replaced in May 2011 by a third Minister of Tourism, His Excellency Abdulmalik Al-Khalili. Last month (March 2012), H.E. Abdulmalik was appointed as the Minister of Justice and he was replaced at MOT on March 1, 2012 by the present Minister of Tourism, His Excellency Ahmad bin Nasser Al Mehrzi.

_____________________________

A meeting between Omagine and MOT senior staff was finally scheduled and on December 10, 2011, we met with the Director General for Planning at MOT, Mr. Mohamed Sinanni, (who was the primary MOT negotiator of the Omagine DA over the years), an MOT lawyer also heavily involved in the Omagine DA negotiations over the years, an adviser to the Minister, and the head of the Minister’s office.

Both Mr. Sinanni and the MOT lawyer were completely and entirely familiar with all the details of the Omagine Project, the years of DA negotiations, and with the Final DA. The head of the Minister’s office asked for a briefing on the Omagine Project and we referred him to Mr. Sinanni, the MOT lawyer and to the aforementioned Omagine DA Report which we had sent to the Minister 6 months earlier in June 2011. The MOT attendees at the meeting stated that they had not seen or read the Omagine DA Report so we again sent it to the head of the Minister’s office the following day (December 11, 2011).

At this December 10^th meeting (i) Mr. Sinanni confirmed to all in attendance that the “Final DA” was indeed agreed in its entirety by the Government and by Omagine LLC, and (ii) the MOT lawyer stated that the Government and Omagine LLC would be signing the DA in a few weeks. The meeting was otherwise uneventful and we were asked to return to Oman in mid-January (later postponed by MOT to late January) in order to meet with H.E. Abdulmalik Al-Khalili and conclude. After several unsuccessful attempts to schedule a meeting, our attorneys wrote to H.E. Abdulmalik Al-Khalili on January 23, 2012. Our attorney’s letter to the Minister of Tourism stated in relevant part; “The Final DA combined with the numerous “approval letters” from the Government and other written and oral communications with and from the Government clearly and unequivocally demonstrate that a meeting of the minds has occurred between MOT and Omagine LLC with respect to the terms and conditions of the Final DA and we are concerned about the continued internal delays at MOT”.

Neither H.E. Abdulmalik Al-Khalili (the former Chairman of Bank Muscat and now the Minister of Justice) nor anyone from the Oman Government disputed this fact or objected to the fact that such an agreement and meeting of the minds regarding the Final DA had occurred. As of the date hereof (3 months after our attorney’s January letter and 9 months after the Final DA was agreed), the complete agreement to all the terms and conditions of the Final DA by all parties remains uncontested by the Government.

_____________________________

During March 2012 and continuing through to the date of this report, we, our lawyers, and now a representative of Royal Court Affairs (“RCA”) have been in touch with the Under-Secretary of Tourism, Her Excellency Maitha Al Mahrooqiyah in order to arrange a meeting with Her Excellency, the Under-Secretary and the Omagine LLC shareholders. The purpose of the meeting is to determine the status of the Omagine DA, to update the Under-Secretary and to arrange a follow-on meeting with the new Minister, H.E. Ahmad bin Nasser Al Mehrzi with a view to determining a signing date for the DA. Management has been actively engaged with high level persons in both the Oman Government and the U.S. Government over the past many months in an effort to break the communications logjam with the MOT.

On April 11, 2012, a representative of Royal Court Affairs informed us that he had a telephone conversation that day with Her Excellency Maitha wherein Her Excellency informed the Royal Court Affairs’ representative: (i) that she has reviewed the Omagine DA and the Omagine Project; (ii) that MOT very much likes the project and believes it will be a good project for the Sultanate; and (iii) that there is no material problem and the only issue outstanding is that MOT wants to amend certain DA clauses in order to make the DA conform with new Government regulations including the new regulations regarding investor and consumer protection for home buyers. Her Excellency Maitha informed the RCA representative that MOT had drafted the changes to the affected DA clauses and sent them to the Ministry of Legal Affairs (“MOLA”) for a legal opinion and that MOT was awaiting a response from MOLA (the “MOLA Response”). When asked by the RCA representative when such MOLA Response was expected, Her Excellency informed the RCA representative that she had spoken to the Under-Secretary at MOLA just that morning (April 11); that she would continue to follow up with MOLA; that she was instructed by the new Minister of Tourism, His Excellency Ahmad Al Mehrzi, to prioritize and finalize the Omagine Project and DA; and that as soon as she received the MOLA Response she would contact the RCA representative to arrange a meeting with him and the Omagine staff to discuss the MOLA Response, finalize the DA, and arrange for a DA signing date. Her Excellency apologized to the RCA representative for not meeting with the Omagine staff earlier but explained that she is unable to discuss the matter fully until she receives the MOLA Response. In closing, the RCA representative again asked Her Excellency if there were any other issues outstanding other than the modification of the DA clauses pursuant to the MOLA Response to which she had referred. Her Excellency responded that no, there were no other issues outstanding; that Omagine is a good project for the country; that the new minister is urging her to finalize the Omagine DA; and that she only had to get the MOLA Response about the modified DA clauses.

_____________________________

Although there have been extraordinary delays to date by the Government, now that the Final DA has been agreed and MOT has informed RCA that it is only awaiting the MOLA Response to MOT’s seemingly minor and immaterial changes to certain clauses in the Final DA, management continues to be cautiously optimistic that the Government will memorialize its agreement to the DA in a signed written document so that progress in the development of the Omagine Project may be facilitated.

Notwithstanding the foregoing however, management is unable at this time to definitively confirm that MOT’s proposed changes to certain DA clauses are indeed “minor and immaterial” as has been indicated to RCA by MOT, nor can we confirm that such proposed changes will or can be accepted by Omagine LLC. Indeed, past experience indicates that caution should be exercised in making any such assumptions until the written MOLA Response and/or the written documents proposing the modified DA clauses are delivered to us by MOT.

_____________________________

The extraordinary location of the Omagine Site is universally recognized by local market participants and the significance to the Company of the provision of the Omagine Site to Omagine LLC is enormous. Irrespective of its future PIK valuation as an Omagine LLC capital investment (which valuation management expects to be substantial), the Omagine Site will be a primary driver of future Company revenue and the benefits to the Company derived from the PIK will be significant

_____________________________

The land within the Omagine Site underlying such residences or commercial properties may be sold to the buyer of such residences or commercial properties and the freehold title to such land and properties may be transferred to such buyers at the closing of such sales transactions. As mentioned above, the value of the land constituting the Omagine Site is expected to have a positive effect on Omagine LLC’s revenue. Pursuant to the Final DA, Omagine LLC will pay the Government 25 Omani Rials (approximately $65) per square meter for the land it sells to third parties. Such payment is only made to the Government by Omagine LLC after the closing of the sale of such land and the receipt of payment by Omagine LLC from such third parties. At the present time, the average selling price for land at the Omagine Site is conservatively estimated by local real estate agents to be at least 250 Omani Rials (approximately $650) per square meter.

_____________________________

The Rights Offering expired on March 30, 2012 and all unexercised Rights have expired. Record Shareholders exercised 1,014,032 Rights to purchase 1,014,032 Common Shares in the Rights Offering, including 48,119 Rights that were exercised pursuant to the over-subscription privilege. Total proceeds to the Company from the Rights Offering was $1,267,540 of which $731,639 was paid in cash and $535,901 was paid via the satisfaction of debt owed by the Company to Record Shareholders exercising such Rights. Of the 1,014,032 new shares issued pursuant to the Rights Offering, 585,311 of such shares were issued in exchange for the aforementioned $731,639 in cash and 428,721 of such shares were issued in exchange for the aforementioned satisfaction of $535,901 of Company debt constituting promissory notes for loans to the Company and accrued but unpaid salaries and expenses. Of the $535,901 of Company debt which was satisfied in the Rights Offering, $506,750 of such debt represented unpaid salaries, expenses and loans to the Company which were due and owing by the Company to officers and directors of the Company.

_____________________________

As of March 27, 2012, the Registrant had 13,287,181 shares of Common Stock issued and outstanding and no shares of preferred stock issued or outstanding. As of the date of this report, the Company has outstanding 14,301,213 shares of Common Stock, 3,202,200 $5 Warrants, 3,202,200 $10 Warrants and no shares of preferred stock.

_____________________________

The continuation of the Company’s operations is dependent upon its ability to secure financing for its operations until such time as the DA is signed, the Financing Agreement Date occurs, and Omagine LLC begins paying Omagine, Inc. the $10 million Success Fee and the approximately $9 million of Pre-Development Expenses.

The Company has relied to a great extent on the Standby Equity Distribution Agreements discussed below and on the proceeds from its recent Rights Offering and Warrant Distribution to provide financing for its previous and current activities. If the DA is signed, management is hopeful that the Warrants will provide a future source of additional financing.

_____________________________

The Company has utilized the First SEDA, the Second SEDA and the proceeds from its recent Rights Offering to fund its operations to date and intends to continue to utilize the Second SEDA to fund its ongoing operations, as and if necessary. Management is hopeful that, when and if the Omagine Development Agreement is signed, that the 6,404,400 Warrants distributed in its recent Rights Offering and Warrant Distribution will thereafter become “in the money” and will be exercised, thereby providing the significant amount of capital necessary to fund the OMAG Final Equity Investment into Omagine LLC and a secured loan to Omagine LLC which will trigger the first Financing Agreement Date.

_____________________________

Salvatore J. Bucchere served as an independent director of the Registrant from 2001 until his sudden and unexpected death last week on April 9, 2012. Mr. Bucchere’s services and wise counsel will be greatly missed by the Company and by its officers and directors. The Board of Directors wishes to express its heartfelt condolences to Mr. Bucchere’s wife and family on this very sad occasion of his untimely passing.

The Company filed a Current Report on Form 8-K with the Securities and Exchange Commission today. Following is the relevant portion of the filing which is an update to shareholders:

Omagine, Inc. (the "Company") is providing the following information in order to keep our shareholders informed of the Company’s activities and in response to several shareholder inquiries seeking clarity with respect to (i) the signing of the Development Agreement (“DA”) for the Omagine Project, and (ii) the expiration date for the Company’s ongoing Rights Offering.

A new Minister of Tourism for the Oman Government was appointed in early March 2012. His Excellency Ahmad bin Nasser Al Mehrzi has now taken up his new post at the Ministry of Tourism (MOT).

The shareholders of Omagine LLC (the Company, Royal Court Affairs, and Consolidated Contractors) anticipate meeting with H.E. Al-Mehrzi and the Under-Secretary at MOT, Her Excellency Maitha Al Mahrooqiyah, within the next several days. The purpose of the meeting is to update the new Minister and the Under-Secretary and to determine a signing date for the DA.

We and our attorneys are presently arranging this meeting but the time and date for the meeting has not been confirmed as of the time this report was filed. We are therefore not yet in a position to say when the DA will be signed.

Several of our shareholders have inquired about a possible extension of the expiration date for the Company’s ongoing Rights Offering. The Board of Directors has carefully reviewed this matter and has determined not to extend the March 30, 2012 expiration date for the Company’s Rights Offering.

The Company will not know the final results of the Rights Offering until shortly after March 30, 2012. The Company’s president, Frank J. Drohan, has today exercised all 322,730 of his Rights.

As stated in our recent Prospectus, the Rights Offering will expire at 5 p.m. Eastern Time in the United States on March 30, 2012.

Regards,

Agoracom

Omagine, Inc. (the "Company") filed a Registration Statement with the Securities and Exchange Commission ("SEC") to register the Common Shares underlying the Company's Rights and Warrants being distributed to its shareholders as of the Record Date and that Registration Statement was declared effective by the SEC on February 13, 2012.

Each Company shareholder as of 5 pm Eastern Time in the United States on February 24, 2012 will receive, at no charge, one Right and two Warrants for each 4 Common Shares then held by such shareholder.

Each Right will entitle its holder to purchase one Common Share at a subscription price of $1.25 per share and an over-subscription privilege at the same price per share. Record Shareholders may exercise their Rights any time after the Record Date and prior to 5 pm Eastern Time in the United States on March 30, 2012.

In addition, pursuant to the Warrant Distribution, each Company shareholder as of 5 pm Eastern Time in the United States on February 24, 2012 will receive, at no charge, for each four Common Shares then held by such shareholder, (a) one Warrant exercisable for the purchase of one Common Share at $5.00 per share, and (b) one Warrant exercisable for the purchase of one Common Share at $10.00 per share.

All fractional Rights and Warrants will be rounded up to the nearest whole Right or Warrant.

The Company's president, Frank J. Drohan, remarked: "I urge our shareholders to read our recently filed Prospectus and Registration Statement for the full details, terms and conditions of the Rights Offering and Warrant Distribution."

This press release does not constitute an offer to sell any securities or a solicitation of an offer to purchase any securities.

About Omagine, Inc.

Omagine, Inc., through its subsidiaries, is focused on real-estate, entertainment and hospitality development opportunities in the Middle East and North Africa ("MENA Region"). Governments in the MENA Region are seeking to diversify their economies through projects that create employment and tourism destinations. It is the Company's opinion that this strategic vision combined with the enormous financial resources in the MENA Region will continue to present superb development opportunities.

Shareholders, investors or interested parties may also visit the Company's website at www.omagine.com.

The Omagine, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=2345

This press release does not purport to be a complete description of the Rights Offering or the Warrant Distribution and, for a complete description of both the Rights Offering and the Warrant Distribution, investors and shareholders are directed to the full text of the Company's Prospectus and Registration Statement which have been filed with the SEC. A link to the Company's SEC filings may be found on the Company's website www.omagine.com.

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The risks and uncertainties that may affect the operations, performance development and results of Omagine, Inc.'s business are detailed in the Company's SEC reports. The Company urges investors to read the SEC Reports and cautions that future events rarely develop exactly as forecast, and the best estimates routinely require adjustment.

CONTACT: Omagine, Inc.
         Corporate Inquiries
         Charles P. Kuczynski, Vice-President
         (212) 563-4141
         ckuczynski@omagine.com

Pursuant to the Rights Offering, each Company shareholder as of the Record Date will receive, at no charge, one Right for each 4 Common Shares held by such shareholder as of the Record Date.

Each Right will entitle its holder to purchase one Common Share at a subscription price of $1.25 per share and an over-subscription privilege at the same price per share.

In addition, pursuant to the Warrant Distribution, each Company shareholder as of the Record Date will receive, at no charge, for each four Common Shares held by such shareholder, (a) one Warrant exercisable for the purchase of one Common Share at $5.00 per share, and (b) one Warrant exercisable for the purchase of one Common Share at $10.00 per share

All fractional Rights and Warrants will be rounded up to the nearest whole Right or Warrant.

The Company has filed a Registration Statement with the Securities and Exchange Commission ("SEC") to register the Common Shares underlying the Company's Rights and Warrants and Company shareholders as of the Record Date will receive their Rights and Warrants after that Registration Statement is declared effective by the SEC.

The Company will announce the Record Date and the beginning and expiration dates for the Rights Offering shortly after it receives notice from the SEC that the Registration Statement will be declared effective.

The Company's president, Frank J. Drohan, remarked: "We are very pleased that the Board of Directors has taken this action to prepare the Company for what we expect to be a gratifying year in 2012. The Rights Offering and Warrant Distribution will also reward our loyal shareholders as the long process of finalizing the Development Agreement with the Government of Oman for the Omagine Project appears to be coming to a conclusion. As we move the Company forward to the next level, I urge our shareholders to read our recently filed Registration Statement for the full details of the Rights Offering and Warrant Distribution. We expect the Record Date to be sometime in February but the exact date will depend upon the time required for the SEC review process."

About Omagine, Inc.

Omagine, Inc. (the "Company") through its subsidiaries is focused on real-estate, entertainment and hospitality development opportunities in the Middle East and North Africa ("MENA") region. Governments in the MENA Region are seeking to diversify their economies through projects that create employment and tourist destinations. It is the Company's opinion that this strategic vision combined with the enormous financial resources in the MENA region will continue to present superb development opportunities.

The Omagine, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=2345

Shareholders, investors or interested parties may also visit the Company's website at www.omagine.com.

This press release does not purport to be a complete description of the Rights Offering or the Warrant Distribution and, for a complete description of both the Rights Offering and the Warrant Distribution, investors and shareholders are directed to the full text of the Company's Registration Statement which has been filed with the SEC. A link to the Company's SEC filings may be found on the Company's website www.omagine.com.

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The risks and uncertainties that may affect the operations, performance development and results of Omagine, Inc.'s business are detailed in the Company's SEC reports. The Company urges investors to read the SEC Reports and cautions that future events rarely develop exactly as forecast, and the best estimates routinely require adjustment.

This press release does not constitute an offer to sell any securities or a solicitation of an offer to purchase any securities.

Omagine, Inc.
Corporate Inquiries
Charles P. Kuczynski, Vice-President
(212) 563-4141
ckuczynski@omagine.com

With forecasts predicting solid economic growth in 2011 and a political system that remained stable in spite of unrest rocking much of the Middle East, Oman looks set to see increased investor interest in the coming years.

GDP reached RO 22.2 billion ($57.67 billion) in 2010, amounting to a 23.44 per cent increase over the 2009 figure. This was particularly encouraging going into 2011, showing the Sultanate had recovered from the 22.6 per cent year-on-year loss it suffered in 2009. The trend is set to continue, with forecasts from October predicting 5.6 per cent growth for 2011.

The Sultanate has also been successful in attracting foreign direct investment (FDI) in recent years. According to the Omani government’s “Foreign Investment Report 2005-09”, FDI increased from RO1.59 billion ($4.13 billion) in 2005 to RO 5.06bn ($13.14 billion) in 2009, the latest year for which government information is available.
Oman’s economy has long been dependent on hydrocarbons, and activities in that sector accounted for 46.45 per cent of GDP in 2010. However, economic diversification was the focus in 2011. The government has acknowledged the need to continue moving towards a knowledge-based, service-oriented economy.

The eighth five-year development plan, which serves as an economic blueprint for the 2011-15 period, was introduced in January of last year. Given the country’s relatively young population — 22 per cent of Omanis are between the ages of 15 and 24 — the plan places significant focus on employing locals, particularly in the private sector.
Omanis made up 16 per cent of the private-sector workforce in 2010, an issue the government hopes to address by promoting education and training initiatives, as well as through the development of small and medium-sized enterprises.

The government has also been pushing an Omanisation policy, which maintains that Omanis must account for a set minimum percentage of employees in a company on a sector by sector basis. In 2011 the government raised the minimums for companies in the insurance sector from 45 per cent to 65 per cent, and for finance institutions from 75 per cent to 80 per cent. These requirements must be met by the end of 2012.
The eighth five-year plan also emphasises developing several non-hydrocarbons sectors, including industry, tourism and agriculture. Indeed, industry expansion — particularly in the metals segment — has been a highlight of 2011. Oman has a strong record as an exporter of minerals and quarried goods.

It significantly increased its output in the segment throughout the last decade, having produced $29.8 million worth of mined and quarried goods in 2008, according to a UN Economic and Social Commission for Western Asia report from March 2011. Aluminium mining and production has been an especially important development.
Sohar Aluminium, which became the Sultanate’s first aluminium producer when it began operations in 2008, also announced plans in 2011 for a $3bn upgrade to its facilities. The company saw several successes during 2011: it produced its millionth tonne of aluminium in August and in November hosted more than 400 guests at the Arab Aluminium Conference (ARABAL), the most significant annual event for the region’s aluminium producers.

Jindal Steel & Power, the Indian firm that purchased Shadeed Iron & Steel, hit the ground running in 2011 after its new direct reduction unit came online in December 2010, three months ahead of schedule. With a capacity of 1.5 million tonnes per annum (tpa), the unit produces hot briquetted iron and hot direct reduced iron. The firm was still on a roll in August, when it announced it had raised $475 million to implement a two-part expansion of the Jindal Shadeed Iron & Steel Plant in Sohar.
Further successes were seen in the banking sector, with His Majesty Sultan Qaboos issuing a decree in early May allowing for the establishment of Islamic financial institutions in the country. As the Sultanate had been the only Gulf country without Islamic banks, many financial institutions were eagerly awaiting the chance to offer sharia-compliant services.

With RO 150 million ($388.6 million) in capital, Bank Nizwa will be Oman’s first fully fledged Islamic bank, expected to open in early 2012. Additionally, Bank Al Izz, which is currently a lender under formation, was awarded a licence in August to operate as an Islamic bank. Ali Hamdan al Raisi, the vice-president of the central bank, said that month it could be several years until the bank becomes operational.

Further expansion is forecast in other sectors, with tourism a particular area of focus. Revenue in the sector is expected to increase by more than 70 per cent over the coming decade, to $7.5 billion, up from an expected $4.4 billion in 2011, according to the World Travel & Tourism Council.

With Muscat chosen as the Arab Tourism Capital for 2012 by the Arab Tourism Ministers Council, it is likely the sector will show a further revenue boost in the coming year, particularly given its relative stability in a time of regional unrest.

While growth has been targeted — and is expected — in many sectors, the government will still face certain difficulties in the coming years, and its efforts may be hampered by ongoing political unrest. Encouraging greater numbers of Omanis toward the private sector for work continues to pose a challenge, as could inflation, which reached 5.3 per cent in August.

The latter problem, however, is being addressed by the central bank through several measures and the IMF predicts inflation will sink to 3.3 per cent in 2012. In spite of these challenges, Oman has laid out a solid economic plan for the coming years and will likely continue to attract FDI with its increasingly favourable business environment and economic resilience.

Oxford Business Group (OBG) is a global publishing, research and consultancy firm, which publishes economic and political intelligence on the markets of the Middle East, Africa and Asia. Through its range of print and online products, OBG offers comprehensive and accurate analysis of political, macroeconomic and sectoral developments, including banking, capital markets, insurance, energy, transport, industry and telecoms.

Oringally published Thu. January 12, 2012

Link: http://main.omanobserver.om/node/78951

In accord with our obligation to keep our shareholders informed of the Company’s activities and results, and in response to several shareholder inquiries seeking clarity and transparency with respect to the very long time it is taking to conclude and sign the Development Agreement (“DA”), Omagine, Inc. (the "Company") is providing the following information in order to update its shareholders regarding the present status of the Omagine Project and the Development Agreement.

A new Minister of Tourism was appointed in early 2011, and since he was understandably unfamiliar with past Ministry of Tourism (“MOT”) dealings with respect to the Omagine Project, the legal staff at the MOT asked us in June 2011 to provide a history of the Omagine Project for use by them in updating and briefing the then newly appointed Minister. We and our lawyers complied with this quite reasonable request in June 2011 by delivering to MOT, among other things, a 12 page factual record of the history of the negotiations from inception through June 2011 (the “Omagine DA Report”).

Our attorneys were thereafter advised by the MOT that all matters regarding the DA were resolved, agreed and accepted by the Government. The only remaining task to accomplish was the registration of the Omagine LLC shareholders with the Ministry of Commerce & Industry (the “Registration”). The Registration was finalized on September 13, 2011 and the final Registration documents were delivered to MOT on September 19, 2011.

On September 13, 2011, the Company’s president, Mr. Frank Drohan, wrote to His Excellency, the Minister of Tourism advising him of the finalized Registration and the imminent delivery of the Registration documents to MOT and requesting a meeting for the purpose of scheduling an October signing date for the Development Agreement.

On September 19, 2011, Mr. Sean Angle, our attorney and a partner at DLA Piper, wrote to His Excellency enclosing the Registration documents requested by MOT and a copy of Mr. Drohan’s September 13th letter. During September and October 2011, our employees attempted numerous times to schedule a meeting between His Excellency and Mr. Drohan.

On November 1, 2011, Mr. Angle, again wrote to His Excellency to follow up and reminded His Excellency that the Registration was completed in September and that “This was the last remaining task to be completed by our client before the signing of the Development Agreement”.

In mid-November, Mr. Drohan spoke to His Excellency who informed Mr. Drohan that he would arrange a meeting between Omagine and MOT senior staff. The MOT senior staff would then report to and brief His Excellency. The meeting was scheduled for December 10, 2011.

On December 10, 2011, Mr. Drohan, three other Company staff members (representing senior management, finance and design individuals of Omagine LLC) and two lawyers representing Omagine LLC attended the meeting at MOT on behalf of the Company.

Four senior MOT staff members attended on behalf of MOT. The MOT lawyer opened the meeting by stating that “we will not be signing the DA today but we will sign it in the next 3 weeks”. Two of the MOT attendees were new and had no knowledge of any ongoing MOT projects or negotiations and they asked us to brief them on the “history of the Omagine Project”.

Our staff and lawyers pointed out that we had provided the answer to that precise inquiry from His Excellency 5 months previously – in June 2011 – in detail - in writing – in the Omagine DA Report (mentioned above). All four MOT attendees then informed us that they had not seen or read the Omagine DA Report.

After much discussion, all the MOT attendees agreed that they would find and read the Omagine DA Report and use it to brief His Excellency (who was travelling at present) and asked us to return in January to meet with His Excellency.

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Mr. Drohan then addressed all the MOT attendees and inquired: “Is there anyone in this room that has any indication or knowledge or reason to believe that the DA will not be signed ?” No one replied that they had any such indication, knowledge or reason to so believe – on the contrary they confirmed during the meeting that in spite of the long DA negotiation process – “Everything was now agreed.” They again stated that they had to find and read the Omagine DA Report, brief His Excellency, and then His Excellency would meet and conclude with Mr. Drohan in January.

Our attorney, Mr. Angle, stated that he would immediately send another copy of the June 2011 Omagine DA Report to them at MOT (which has been done) and he confirmed the timetable of mid-January for the MOT staff to accomplish their task of briefing His Excellency.

Management and its lawyers have very extensive experience dealing with the Omani Government bureaucracy and particularly with the MOT. The consensus of all the Omagine staff and lawyers at the December 10th meeting was that while this meeting outcome was opaque and difficult to explain outside of Oman, it was not very unusual within Oman. Since the ministerial changes made in Q1 of 2011, similar occurrences at MOT and other ministries were being experienced by and reported to us by business acquaintances in Oman.

It is the unanimous opinion of the Omagine staff and lawyers at the December 10th meeting that, notwithstanding the rather opaque outcome of the December 10th meeting, the DA process is very clearly concluding.

Management continues to be cautiously optimistic that the DA will be signed in January 2012 – or possibly in February 2012. Company management will return to Oman in January to follow up on the results of the December 10, 2011 meeting.

We wish to once again remind our shareholders that the delays we have experienced - although frustrating and not of our making - have in some instances worked to the benefit of the Company. Had we been successful in signing the DA earlier - it is now clear in hindsight that we may very well have been caught in the tsunami of the worldwide financial crisis which would have, in management’s present opinion, had negative effects on the Company. Currently, the real estate market in the Muscat area is experiencing a slow but steady recovery. Management is of the opinion that - ironically - the prospects for the Company and its shareholders have benefited from some of the 2009/2010 delays encountered and the Company’s prospects will be well served if the DA is signed in early 2012.

Forward-Looking Statements

Some of the information contained in this Report may constitute forward-looking statements or statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations and projections about future events. The words "estimate", "plan", "intend", "expect", "anticipate" and similar expressions are intended to identify forward-looking statements which involve, and are subject to, known and unknown risks, uncertainties and other factors which could cause the Company's actual results, financial or operating performance or achievements to differ from future results, financial or operating performance, or achievements expressed or implied by such forward-looking statements. No assurance can be given that the Development Agreement will actually be signed. Management cautions investors that extraordinary delays have been encountered to date and that no assurances can be given that our assumptions about the DA being signed or when it will be signed are correct. Projections and assumptions contained and expressed herein were reasonably based on information available to the Company at the time so furnished and as of the date of this filing. All such projections and assumptions are subject to significant uncertainties and contingencies, many of which are beyond the Company's control and no assurance can be given that the projections will be realized. Potential investors are cautioned not to place undue reliance on any such forward- looking statements, which speak only as of the date hereof. The Company undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.