Gulf Resources Provides Outlook on Bromine Prices

Published Sep 21st, 2009

NEW YORK and WEIFANG, China, Sept. 21 -- Gulf Resources, Inc. (OTC Bulletin Board: GFRE; "Gulf Resources" or the "Company"), a leading manufacturer of bromine, crude salt and specialty chemical products in the People's Republic of China, today provided an update on year-to-date bromine prices in China and discussed the outlook for bromine prices for the remainder of 2009.
 

Bromine prices have rebounded significantly in 2009 after the slump caused by an overall decrease in raw material prices and a reduction in manufacturing activity in the beginning of the year due to the slowdown of the global economy. In September 2009, bromine prices reached $1,980 per metric ton, demonstrating an 18% increase from the lowest price of $1,680 per metric ton recorded at the beginning of 2009.

"We are observing several trends indicating further increases in China's bromine prices during the remainder of 2009. First, industries utilizing bromine demonstrate strong demand, while supply remains flat. Second, as the domestically produced share of all bromine consumed in China increases, domestic producers have more pricing power. Finally, lower bromine inventory levels of domestic suppliers mean less pressure to discount prices," stated Xiaobin Liu, CEO of Gulf Resources. "According to a report by one Chinese chemical website ( http://www.chinachemnet.com/ ), published on September 14, 2009, bromine prices are expected to reach a record high level in the fourth quarter of 2009." It is believed that these favorable factors will contribute to the net profit of the Company.

About Gulf Resources, Inc

Gulf Resources, Inc. operates through two wholly-owned subsidiaries, Shouguang City Haoyuan Chemical Company Limited ("SCHC") and Shouguang Yuxin Chemical Industry Co., Limited ("SYCI"). 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 & gas field explorations and as papermaking chemical agents. For more information about the Company, please visit http://www.gulfresourcesinc.cn .

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, 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.