Found on pg 1, which is the next page after the perspectus summery

LLC has been attempting to close an investment transaction with a new investor to replace the investment on which CCC has defaulted. As previously reported, management has a signed written agreement (an “Investment Agreement”) with one such investor. The Investment Agreement is for an amount in excess of the aggregate investment which was to be made by CCC-Oman and CCC-Panama. This binding Investment Agreement was signed by LLC and the investor in November 2016 and contemplated the funding of the investment in January 2017. Subsequent to entering into this Investment Agreement, the investor unfortunately and unexpectedly passed away.

The investor’s heirs have acknowledged the validity of the Investment Agreement and have agreed to fulfil their father’s commitment pursuant to it as soon as his estate (which we understand to be quite substantial and complicated) is settled. LLC management has been dealing with the investor’s heirs since December 2016 and our understanding from them is that their father’s estate will be settled “soon”. We have concluded that we can no longer rely on their assurances of an imminent conclusion as the heirs have frequently indicated to us that the estate settlement was imminent – but delays have continued to date. No assurance can be given to investors and shareholders that such investment transaction will actually occur until it actually does occur. Management has not abandoned its efforts to close the investment transaction memorialized by the Investment Agreement but we no longer believe it will occur within the time frame we or the Ministry of Tourism (“MOT”) require for the start of development. We are no longer relying on the prompt conclusion of the estate settlement. When the estate does settle, we will entertain an investment from the heirs.

Even before exercising the OMAG Options, we had, as previously disclosed, accelerated our efforts with several investment funds including two European investment funds with whom we are in final discussions. Several other European investment funds with whom we have been holding discussions in parallel have also now expressed interest but those discussions are at an early stage.

LLC will not have the approximately $20 to $25 million of funding sufficient to begin the serious design, masterplanning and initial site activities on the Omagine Project until we close a transaction with a replacement investor for CCC. These Soft Costs are typically paid for by the developer (LLC) out of equity as opposed to the much greater project finance costs which are typically paid for by the developer (LLC) via bank loans arranged by the developer. Management has also been conducting parallel project finance discussions with a bank and we expect a successful conclusion to that discussion to occur soon after we close an equity investment with a new investor.