Gulf Resources, Inc. (OTCBB: GFRE)

Dear Reader,

Yesterday we introduced an exciting China-based company, Gulf Resources Inc. (OTCBB: GFRE), the largest producer of bromine in China.  And just this morning Gulf Resources announced an agreement to acquire another bromine producer, which is expected to add $2.4 million in net income.  

Breaking *NEWS* Gulf Resources, Inc.

Press Release Source: Gulf Resources, Inc.
Tuesday January 8, 8:30 am ET

NEW YORK and SHANDONG, China, Jan. 8 /Xinhua-PRNewswire-FirstCall/ -- Gulf Resources, Inc. (the "Company") (OTC Bulletin Board: GFRE - News) a leading producer of Bromine and crude salt in China through its wholly-owned subsidiary Shuoguang City Haoyuan Chemical Company Limited (SCHC), announced today it signed a definitive agreement to acquire substantially all of the assets in the Wei Fang City Hanting area of a bromine producer owned by Mr. Xiaodong Yang. Mr. Yang is not related to the Company's CEO. Total consideration paid by SCHC was approximately $9.7 million.

The assets include a 50-year mineral rights and land lease covering 2,641 acres, or 11 square kilometers through December, 2055, which has been paid in the full. The property has 200,000 to 210,000 metric tons of proven bromine reserves. Additional assets to be conveyed with the purchase include the related production facility, wells, pipelines and other production equipment, in addition to the current buildings and other assets on the property. The Company executed an asset purchase agreement with Mr. Xiaodong Yang, the sole owner on January 8, 2008. Mr. Yang is not related to the Company's CEO.

The facility is currently operating at 80 percent capacity and produces approximately 4,700 metric tons of bromine annually through 294 wells, which equates to $9.4 million in revenues and $2.4 million in net income at current market prices. In the future, Gulf Resources plans to increase capacity utilization to 85 percent.

"The acquisition of facilities in the Wei Fang City Hanting area complements our existing bromine portfolio and provides further confirmation of our team's ability to utilize our valuable exploitation license to complete targeted bromine asset purchases which will serve to both expand our overall reserves and increase our annual production output," stated Ming Yang, CEO, Gulf Resources, Inc. "We continue to pursue new bromine based product introductions which will create a vertically integrated production model giving us key competitive advantage while improving our overall margin profile."

The asset purchase is subject to various conditions, including applicable regulatory approvals. Further details on the terms of this transaction can be found in the Company's 8-K which will be filed with the Securities and Exchange Commission.

Gulf Resources, Inc.
Gulf Resources, Inc, operates through two wholly-owned subsidiaries: SCHC which is engaged in manufacturing and trading Bromine and Crude Salt in China. Bromine is used to manufacture a wide variety of bromine compounds used in industry and agriculture, and SYCI which manufactures and sells chemical products utilized in oil & gas field explorations and as papermaking chemical agents. For more information, please visit http://www.gulfresourcesco.com.

Safe Harbor Statement:
Certain statements in this news release may 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 following: the ability of Gulf to complete and integrate the asset purchase in the Wei Fang City Hanting area, the general economic and business conditions in the PRC, 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 crude salt, changes in technology, 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.

    For more information, please contact:

     Investor Relations Contact:
     Ethan Chuang
     Tel:   +1-646-200-6316
     Email: Ethan@gulfresourcesco.com

     Matthew Hayden
     HC International, Inc.
     Tel:   +1-760-994-0034
     Email: Matt.hayden@hcinternational.net

Source: Gulf Resources, Inc.
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About Gulf Resources, Inc.

Gulf Resources, Inc. (OTCBB: GFRE) based in Shandong China, is a US publicly traded company and is a leading provider of chemical products in China. By the end of fiscal year 2006, Gulf Resources had net assets of $8.88 million with total assets valued at over $13.98 million. The company’s market capitalization, as of October 2007, was $198 million USD. 

Gulf Resources conducts its operations through its two wholly-owned subsidiaries: Shouguang City Hao Yuan Chemical Industry Co., Ltd. (SCHC) and Shouguang Yu Xin Chemical Industry Co., Ltd. (SYCI).

SCHC

SCHC is one of the top producers and distributors of bromine and crude salt in China, which are utilized to manufacture a wide variety of industrial compounds and products. The company employs a total of 103 people, including 6 managers, 8 technicians and 5 sales associates.

SYCI

SYCI produces and distributes chemical products and agents used in oil and gas field explorations, oil and gas distribution, oil field drilling, wastewater processing, and in the papermaking industry. The company services large customers such as SINOPEC and PetroChina. Currently, there are 98 employees at the company, including 5 managers, 10 technicians and 8 sales associates. 

Other Recent News from Gulf Resources

NEW YORK and SHANDONG, China, Dec. 4 /Xinhua-PRNewswire-FirstCall/ -- Gulf Resources, Inc. (OTC Bulletin Board: GFRE - News), which is a leading Bromine producer in the People's Republic of China (the "PRC"), today announced that it will present at the ICR XChange Asia Conference, which will be held on Wednesday, December 5, 2007 at the REUTERS Conference Center and the Nasdaq MarketSite in New York City. MORE

Press Release Source: EQUITIES Magazine
Tuesday December 4, 12:01 am ET

NEW YORK, Dec. 4, 2007 (PRIME NEWSWIRE) -- EQUITIES Magazine proudly announces its Winter Discovery Day Conference, to be held at the Princeton Club of New York on Friday, December 7, 2007. At this exciting event, emerging companies from a wide range of sectors will present to an audience of brokers, hedge fund managers, portfolio managers and sophisticated private investors.

The keynote speaker will be Timothy Sykes, a young man who truly personifies the American entrepreneurial spirit. While still in college, Sykes invested $12,415 of Bar Mitzvah gift money and turned it into $1.65 million. With the proceeds, he started his own hedge fund, Cilantro Fund Management, which was Barclays' No. 1 short-bias hedge fund from 2003 to 2006. Sykes is a regular CNBC commentator and has been featured on CNN, FOX News, MSN Money, and CBS Marketwatch, and in Businessweek, Institutional Investor, The New York Times, and the LA Times. MORE
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Financial Highlights For Gulf Resources, Inc.

2007 Financial Guidance

Management is currently revising its guidance to incorporate the recent asset purchases and further integration of previously completed transactions. Management currently anticipates revenues of approximately $54 million, representing an increase of over 200 percent from the $17.8 million reported during calendar 2006. Specifically, management expects that its core bromine business "SCHC" and specialty chemical business "SYCI" will contribute approximately $38 million and $16 million in revenues respectively. Net income is expected to increase approximately 980 percent to at least $13 million from the $1.2 million reported in 2006, which included a $5.3 million non-cash equity compensation charge. Previously issued guidance for revenue and net income was $48 million and $11.6 million respectively.

These estimates do not include any potential future acquisitions or non- cash charges related to the amortization of goodwill from previously completed acquisitions.

TO CONTACT GULF RESOURCES

Company Contact:
Ethan Chuang
Phone: 646.200.6316
E-mail:  Ethan@gulfresourcesco.com
Web Site:  www.gulfresourcesco.com

Investor Relations Contact:
Hayden Communications, Inc.
Matthew Hayden, President
Phone: 760.994.0034
E-mail: matt@haydenir.com

Visit the GFRE Web site: Click Here

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