Gulf Resources Provides Clarification on Financing Timeline

Published Sep 15th, 2010

SHANDONG, China, Sept. 15 /PRNewswire-Asia-FirstCall/ -- Gulf Resources, Inc. (Nasdaq:GFRE - News) ("Gulf Resources" or the "Company"), a leading manufacturer of bromine, crude salt and specialty chemical products in China, today provided clarification on the financing timeline.
 

As the Company has stated in the financing and acquisition strategy update press release, Gulf Resources' management believes its common stock fails to accurately reflect the true value of the business and its growth potential. Also, given Gulf Resources' strong cash balance, no long-term or short-term debt, and positive cash flow, the Company will turn to its cash balance first to fund future possible acquisitions. As a result, the management has decided not to raise capital during 2010.

"We want to emphasize our commitment on executing sound financing transactions to our shareholders," said Mr. Xiaobin Liu, CEO of Gulf Resources. "The Company will only raise capital under favorable market conditions and at a reasonable stock price. Our strong balance sheet and healthy cash flow will be sufficient to support daily operations and smaller acquisitions, while larger acquisitions will be funded through a combination of cash, debt and equity, subject to market conditions."