Gulf Resources Announces $10 million Share Repurchase Program

Published Sep 27th, 2010

SHANDONG, China, Sept. 27 /PRNewswire-Asia/ -- Gulf Resources, Inc. (Nasdaq: GFRE) ("Gulf Resources" or the "Company"), a leading manufacturer of bromine, crude salt and specialty chemical products in China, today announced that Gulf Resources' Board of Directors has authorized a new share repurchase program under which the Company may acquire up to $10 million of its issued and outstanding common shares from time to time over the next 12 months. Any repurchases will be made on the open market at prevailing market prices or in block trades and subject to restrictions relating to volume, price and timing.  Gulf Resources plans to fund repurchases from its available cash balance.
 

"Given our solid market leadership position, strong track record of business expansion and healthy balance sheet, we believe that our stock is deeply undervalued," said Mr. Xiaobin Liu, Chief Executive Officer of Gulf Resources.  "Our share repurchase program demonstrates the management's commitment to enhance shareholders value as we remain on our growth path. Supported by the favorable bromine pricing environment, we are confident that this is an optimal opportunity to leverage our strong balance sheet and invest in Gulf Resources."
 

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.

For more information, please contact:

Gulf Resources, Inc.
David Wang, VP of Finance
Email: gfre.2008@vip.163.com
 
Helen Xu
Email: beishengrong@vip.163.com
Web:   http://www.gulfresourcesinc.cn

CCG Investor Relations Inc.
Linda Salo, Sr. Financial Writer
Phone: +1-646-922-0894
Email: linda.salo@ccgir.com

Crocker Coulson, President
Phone: +1-646-213-1915
Email: crocker.coulson@ccgir.com
Website: http://www.ccgirasia.com