SHANDONG, China, June 23, 2011 /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 an update to the Company’s  Share Repurchase Plan, which was adopted on September 23, 2010, under which the Company plans to utilize its cash on hand and operating cash flow to repurchase some of its issued and outstanding common shares.

As of the market close on June 22, 2011, the Company has acquired 100,500 shares of its common stock through open market transactions. The Company has also entered into a Rule 10b5-1 share repurchase plan with a registered brokerage firm in the United States, which will allow the Company to continue to repurchase shares throughout quiet periods. The additional repurchases will be made subject to restrictions on price, volume, timing, applicable legal requirements, and other factors.  

The Company plans to update investors on the status of the repurchase program on a quarterly basis, in conjunction with the release of its financial results and filing of its quarterly and annual reports with the Securities and Exchange Commission.

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.

Gulf Resources, Inc.

Helen Xu

Email: beishengrong@vip.163.com

Web: http://www.gulfresourcesinc.cn

CCG Investor Relations Inc.

Linda Salo, Account Manager

Phone: +1-646-922-0894

Email: linda.salo@ccgir.com

Crocker Coulson, President

Phone: +1-646-213-1915

Email: crocker.coulson@ccgir.com

Web: http://www.ccgirasia.com

SOURCE Gulf Resources, Inc.

Copyright 2011 PR Newswire

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