SHANDONG, China, June 27,
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 that the
Company's subsidiary Shouguang City Haoyuan Chemical Ltd. Co. has
signed a non-binding Letter of Intent with the People's Government
of Daying County in Sichuan
Province to explore and develop potential underground brine
water resources. Daying County is called the "China Dead Sea" and
contains potential abundant underground brine resources.
Brine is used for bromine and crude salt extraction. The Company
expects the cooperation to promote its long-term growth strategy of
the Company through access to more bromine and crude salt
resources. According to the Letter of Intent, the People's
Government of Daying County will help the Company obtain exclusive
mining and exploration rights to access brine resources.
After the prospect of brine water have been confirmed, the
Company will consider to invest approximately RMB1.5 billion (approximately $220 million) over the next three to five year
for development of resources.
The Company expects to use cash on hand and cash generated from
operations, in combination with debt, to fund the project and does
not intend to conduct an equity offering to raise the required
capital.
"We are pleased to announce this cooperation agreement with the
Daying County government," said Mr. Xiaobin
Liu, the Company's Chief Executive Officer. "While the
project is still in its early stages of development, we are very
excited about the potential to grow our access to bromine and crude
salt in the PRC, thereby further strengthening 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 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.
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CCG Investor Relations
Inc.
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Helen Xu
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Linda Salo, Account
Manager
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Email:
beishengrong@vip.163.com
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Phone:
+1-646-922-0894
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Web: http://www.gulfresourcesinc.cn
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Email:
linda.salo@ccgir.com
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Crocker Coulson,
President
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Phone:
+1-646-213-1915
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Email:
crocker.coulson@ccgir.com
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Web: http://www.ccgirasia.com
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SOURCE Gulf Resources, Inc.