SHOUGUANG, China, July 03, 2024 — Gulf Resources, Inc. (Nasdaq: GURE), a leading Chinese manufacturer of bromine, crude salt and specialty chemical products, announced that its wholly owned subsidiary, Shouguang Hengde Salt Industry Co. Ltd (“SHSI”), has signed agreements to acquire crude salt fields for a total price of RMB280,762,000 (approximately US$38,619,257 based on the current exchange rate on July 3, 2024).

The purchase includes 5 parcels of crude salt fields totaling 5,141,000 square meters (approximately 1,270 acres).

80% of the purchase price, or RMB224,609,600.00 (approximately USD $30,895,406), will be paid in cash upon signing of the agreements. The remaining 20% will be paid in shares of Gulf Resources’ common stock within three months from the date of the agreements, after SHSI has inspected and accepted the crude salt fields in writing.

The acquisition of these crude salt fields may enable Gulf Resources to reopen bromine factories #2 and #10. The additional crude salt fields will allow the company to drill more wells and achieve a higher level of utilization.

The company estimates it will take 6-9 months to prepare for the opening of the two factories. This will involve building out the salt pans and drilling new wells. Production is expected to begin in the first half of 2025.

“We are pleased to have reached these agreements with the government of Shouguang City and Yangkou Town,” stated Mr. Xiaobin Liu, the CEO of Gulf Resources. “With additional crude salt fields, we may not only be able to reopen our two remaining closed factories, but also drill new wells and achieve increased utilization, while protecting the welfare of the local population.”

“In addition,” Mr. Liu added, “with the money invested in flood protection, we expect to safeguard the bromine facilities and other impacts we have experienced in the past.”

“While the Chinese economy continues to struggle,” Mr. Liu concluded, “we are very optimistic about the future for bromine and crude salt. Bromine is a mineral that is only produced in a few regions. Almost 75% of world-wide production comes from the Dead Sea region of Israel and Jordan, where conflicts are still ongoing. New opportunities for zinc/bromine batteries as well as sodium-ion batteries could present significant future opportunities. We are pleased to take these steps to increase our bromine and crude salt production, as we are convinced prices may rise in the future.”

About Gulf Resources, Inc.

Gulf Resources, Inc. operates through four wholly-owned subsidiaries, Shouguang City Haoyuan Chemical Company Limited (“SCHC”), Shouguang Yuxin Chemical Industry Co., Limited (“SYCI”), Daying County Haoyuan Chemical Company Limited (“DCHC”) and Shouguang Hengde Salt Industry Co. Ltd. (“SHSI”). The Company believes that it is one of the largest producers of bromine in China. Elemental Bromine is used to manufacture a wide variety of compounds utilized in industry and agriculture. Through SYCI, the Company manufactures chemical products utilized in a variety of applications, including oil and gas field explorations and papermaking chemical agents, and materials for human and animal antibiotics. Through SHSI, the Company manufactures and sells crude salt. DCHC was established to further explore and develop natural gas and brine resources (including bromine and crude salt) in China. For more information, visit .

Forward-Looking Statements

Certain statements in this news release contain forward-looking information about Gulf Resources and its subsidiaries business and products within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. The actual results may differ materially depending on a number of risk factors including, but not limited to, the general economic and business conditions in the PRC, the risks associated with the COVID-19 pandemic outbreak, future product development and production capabilities, shipments to end customers, market acceptance of new and existing products, additional competition from existing and new competitors for bromine and other oilfield and power production chemicals, changes in technology, the ability to make future bromine asset purchases, and various other factors beyond its control. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risks factors detailed in the Company’s reports filed with the Securities and Exchange Commission. Gulf Resources undertakes no duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this release.

CONTACT: CONTACT: Gulf Resources, Inc.
Director of Investor Relations: Helen Xu (Haiyan Xu)