Gulf Resources, Inc. (OTCBB: GFRE)

Dear Reader,

In an ever-volatile market, guidance from a public company - especially a small cap - can be enormously valuable to an investor.  And when that guidance comes from a leading Chinese Bromine producer announcing that management expects to report 2008 revenues of $87 million, net income of approximately $23.5 million and earnings per share of $0.23, it should certainly turn heads.  According to a release issued this morning by Gulf Resources Inc. (OTCBB:GFRE) this appears to be exactly the case.

Investors would be wise to take note of this news (below) and to continue to follow GFRE as the company works to meet these expectations.  

Breaking *NEWS* Gulf Resources, Inc.

Press Release Source: Gulf Resources, Inc.
Wednesday January 9, 10:00 am ET

NEW YORK and Shandong Province, China, Jan. 9 /Xinhua-PRNewswire/ -- Gulf Resources, Inc. (the "Company") (OTC Bulletin Board: GFRE - News), a leading producer of Bromine and specialty chemicals in China through its two wholly-owned subsidiaries, Shuoguang City Haoyuan Chemical Company Limited ("SCHC"), and Shouguang Yu Xin Chemical Industry Co., Ltd. ("SYCI"), today announced financial guidance for calendar 2008.

Management expects to report 2008 revenues of $87 million, net income of approximately $23.5 million and earnings per share of $0.23, based on the approximately 100 million shares currently outstanding.

The guidance provided today includes only the current operations, including the estimated contribution from the recently announced Hanting area asset purchase, and does not take into account any future asset purchases or acquisitions. Management expects that its "SCHC" subsidiary will process, produce and ship approximately 31,000 tons of bromine for the 2008 calendar year and expects this subsidiary to generate $65 million in revenue. Through its current product portfolio and new product introductions, including bromine based compounds which were previously announced, the Company expects its "SYCI" subsidiary to contribute revenue of $22 million for 2008.

"The management team has executed on its growth plan while the domestic bromine market in China continues to experience strong demand. This factor, in addition to the RMB currency appreciation is anticipated to drive further bromine price increases. We continue to evaluate additional unlicensed bromine facilities in our immediate geographic area and expect to complete several asset purchases this year, with the goal of attaining at least a 20 percent market share by the end of 2008. Our exploitation license provides the conduit to pursue these opportunities and is a key asset for our company. Any contemplated acquisition is expected to be incremental to this guidance," stated Gulf Resources Inc. CEO Mr. Ming Yang.

"We are experiencing growth in both of our operating subsidiaries, which is being driven through organic expansion and targeted asset purchases. "SCHC" will continue to make capital improvements where appropriate, including new bromine wells and convey trench lines, while leveraging new integrated production processes to improve capacity utilization. Further, our "SYCI" subsidiary plans to purchase two deep processing plants which produce bromine- based derivatives, a market we are focused on penetrating, which will provide incremental revenue growth and further margin enhancements. These contemplated purchases would be incremental to this guidance."

For calendar 2007, the Company previously provided guidance approximately $54 million in revenues and $13 million in net income. Audited results are expected to be released during March 2008.

About Bromine
Bromine and bromine compounds are used for a wide variety of different applications. Some bromine compounds are effective flame retardants, and nearly one-half of the bromine consumed annually is used in flame retardants for household and industrial applications. The agriculture industry uses bromine in pesticides. Bromine compounds are also used in oil-well drilling fluids, sanitary preparations, and an assortment of other applications including water purification chemicals, fumigants, dyes, medicines, and inorganic bromides (AgBr, silver bromide) used in films and photographic processes.

Bromine-containing chemicals are used in swimming pools and industrial cooling towers to control algae, bacteria, and odors. Some bromine-containing pesticides are used in the production or storage of food crops. Bromine also is used in the production of oil and gas well completion drilling fluids. Thanks to bromine chemicals, we now have photographic films and papers, dyes, inks, sedatives, analgesics, anesthetics and other drugs, hydraulic fluids, refrigerating and dehumidifying agents, and hair-waving preparations.

About Gulf Resources, Inc.
Gulf Resources, Inc. operates through two wholly-owned subsidiaries. SCHC is engaged in manufacturing and trading Bromine and Crude Salt in China. Bromine is used to manufacture a wide variety of compounds utilized in industry and agriculture. SYCI manufactures 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:
Several statements in this earnings guidance 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 in these forecasted revenues, net income and earnings per share may differ materially depending on a number of risk factors including, but not limited to, the general economic and business conditions in the Peoples Republic of China, 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, 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, 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. MORE

Press Release Source: Gulf Resources, Inc.
Tuesday December 4, 10:45 am ET

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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