NEW YORK and SHANDONG, China, April 6 /PRNewswire-Asia-FirstCall/ -- Gulf Resources, Inc. ("Gulf Resources" or the "Company") (Nasdaq: GFRE), a leading manufacturer of bromine, crude salt and specialty chemical products in China, today announced that the Company's subsidiary Shandong Yuxing Chemical Industry Co. ("SYCI") has passed the Class 1 supplier audits of China Petroleum & Chemical Corporation ("Sinopec") and PetroChina Company Ltd. ("PetroChina") for the fifth and seventh consecutive year, respectively.

PetroChina's and Sinopec's Class 1 supplier requirements are extremely stringent. In addition to sufficient production capacity and a strict quality management system to ensure product quality, Class 1 suppliers are required to adhere to timely delivery schedules and strict service standards. Sinopec and PetroChina will use other suppliers only if supplies from Class 1 suppliers are insufficient. In 2009, SYCI supplied almost $14.5 million worth of oil and gas additives to Sinopec and PetroChina.

"PetroChina and Sinopec are the two largest oil companies in China," said Mr. Xiaobin Liu, CEO of Gulf Resources. "This year, Gulf resources outperformed many competitors to once again pass the Class 1 supplier audit, which signifies that both our product quality and our services meet the high standards of these two companies. Looking forward, we believe this qualification will continue to enhance our market position."

About Gulf Resources, Inc.

Gulf Resources, Inc. operates through two wholly-owned subsidiaries, Shouguang City Haoyuan Chemical Company Limited ("SCHC") and Shouguang Yuxing 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 (New York)
     Email: crocker.coulson@ccgir.com
     Web:   http://www.ccgirasia.com

SOURCE Gulf Resources, Inc.