On January 30, 2018, Omagine, Inc. received written notice (notice) from EMA Financial, LLC (EMA or the lender) that an event of default had occurred with respect to the Convertible Promissory Note issued by the company in favor of EMA on September 28, 2017 (the note). The lender advised the company that the default occurred because of, among other things, the failure to reserve a sufficient number of shares of the company’s $0.001 par value common stock for possible future issuance to the lender, and for the breach of representations and warranties under the note. As of the notice date, considering default penalties, 24% accrued interest and application of a default calculation, the alleged outstanding balance of the note as calculated by EMA is $1,868,313. The company does not agree with such outstanding balance as calculated by EMA. EMA has demanded full payment from the company and reserves all rights and remedies available to it under the note and related transaction documents.