NEW YORK and SHANDONG, China, Aug. 19 /PRNewswire-Asia-FirstCall/ -- 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 the bromine and crude salt production assets acquired in June 2010 started formal production on August 19, 2010.

Gulf Resources completed the transfer of ownership of bromine and crude salt production assets on June 22, 2010. With support from the sellers of the assets and the local government, the newly acquired asset commenced formal production ahead of schedule in August. The Company expects the newly acquired asset result in daily bromine and crude salt production of 9 and 300 tonnes, respectively, corresponding to annual production capacity of 3,000 tonnes of bromine and 100,000 tonnes of crude salt.

"We are glad to commence the formal production of the newly acquired assets ahead of schedule, as a result of the hard work and support from the local government, sellers of the assets, and our management team," said Mr. Xiaobin Liu, Chief Executive Officer of Gulf Resources. "With limited bromine resources in China to meet the increasing demand, the additional production capacity will help us to generate revenue approximately two weeks earlier than we expected. We expect to take advantage of the favorable pricing environment and ramp up production quickly."

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.
     Crocker Coulson, President
     Phone: +1-646-213-1915 (New York)
     Email: crocker.coulson@ccgir.com
     Web:   http://www.ccgirasia.com

SOURCE Gulf Resources, Inc.