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.