JOL management has concluded its discussions and negotiations with Oman Government officials, the objective of which was to arrive at the terms and conditions of a development agreement ("Development Agreement") between the Government and Omagine LLC which would govern the development of the Omagine Project. As required, several ministries are now reviewing the final draft of the Development Agreement. In order to move into the actual development stage of the Omagine Project, Omagine LLC and the Government must sign the Development Agreement - an event which the Company previously expected to occur during the second  quarter of 2007 but presently expects to occur during the third quarter of 2007. Management has conducted numerous meetings and discussions with several commercial and investment banks and prospective investors, partners, financial advisers, contractors and hotel operators regarding the structure and placement of the necessary construction financing as well as the ongoing financing arrangements and operations of Omagine LLC.

As contemplated in Omagines, Inc annual report filed with the SEC April 17, 2007, JOL will own eighty-five percent (85%) of OmagineCo, J&P will own fifteen percent (15%) of OmagineCo and the Government will not own any equity of OmagineCo. JOL has been informally advised by local real-estate agents that the present value of the Omagine Site is in excess of 100 Omani Rials (USD $270) per square meter or a total value of USD $270 million. Pursuant to the draft Development Agreement now being discussed, OmagineCo's rights of use and ownership of the Omagine Site will be represented by a "Usufruct Agreement" wherein OmagineCo is granted a fifty (50) year lease over the Omagine Site at an annual lease cost of USD $0.80 per square meter, except that the lease cost during the first five years of the Usufruct (the construction period of the Omagine Project) will be zero. Unlike a standard lease however, a Usufruct Agreement, specifically allows OmagineCo to (i) pledge the land constituting the Omagine Site as collateral in any construction or other financing arrangements, and (ii) sell (on a freehold basis) the land underlying the Lease/Usufruct to third parties. Significantly, the Omagine Site will, as confirmed in the Approval Letter, be designated by the Government as an Integrated Tourism Zone ("ITZ") and as such, OmagineCo will be allowed to sell properties developed on the Omagine Site to non-Omani persons. At the time of such third party sales and only after it receives full payment from the third-party buyer, OmagineCo will become obligated to pay the Government twenty -five (25) Omani Rials (approximately USD $67) per square meter for the land so sold. Pursuant to Omani law, only land located within an ITZ is allowed to be sold to non-Omani persons.

Subsequent to the signing of the Development Agreement, the Omagine Site's value will be definitively determined by a qualified independent real-estate appraiser and such appraisal will be used in OmagineCo's Construction Financing discussions with the Financial Institutions. The sale of residential and commercial properties to foreigners [one of the main driving forces behind nearby Dubai's rapid economic growth] as well as the sharp increase in the value of the Omagine Site over the last eighteen months are the main drivers supporting the estimated cash flow projections in OmagineCo's Projected Financial Model. The Projected Financial Model presently predicts an internal rate of return ("IRR") for the Omagine Project of 20% and net positive cash flow in excess of USD $600 million (the "Projected Cash Flow") over the five year period immediately subsequent to the signing of the Development Agreement. As of the date hereof, the "net-present-value" of such Projected Cash Flow is projected to be approximately USD $300 million. Notwithstanding the positive nature of the foregoing "forward looking statements", no assurances can be given at this time that the Development Agreement will actually be signed, that the Financial Closing will actually occur or that such cash flows will actually be realized.

Regards,

AGORACOM Investor Relations