Nick - I did a little more research and wanted to circle back to you on this. This is NOT dilution nor is it additional shares. These 3 million shares are essentially "Treasury" shares. Treasury shares are shares that a company holds but have not yet issued. In this case, these shares have been earmarked for YA Global (but not issued) per the long standing SEDA (standby funding) agreement. By earmarked, I mean that IF Omagine Inc. SHOULD DECIDE it needed to raise more capital, the potentially issued shares to YA would come from this 3 million "held in reserve", sort to speak. It does NOT mean they will ever be issued to YA, only that they COULD be, if circumstances warranted it. So there has been no change in the number of outstanding shares (around 18.7m).

The registration of these shares with the SEC needs to be done periodically because registration could expire after some period of time, if not issued. And they need to be registered so that, if they are ever issued, they would become freely tradeable. The same holds true for our $5 and $10 warrants. The shares that would be issued to us when we excercise our warrants need to be registered with the SEC so that they are immediately tradeable.

So, this notification you noticed is really perfunctory and means nothing to us because, we all fully expect to hear that the finance date has been triggered and that CCC and Omagine have signed their contract (that is, we are expecting management to announce this shortly). Once that happens, $69m flows into LLC and management's hands will be untied from a liquidity perspective and this project will finally start to move forward in an accelerating fashion.

Can't happen soon enough! Let me know if you have any questions on this ... Thanks!