Gulf Resources Comments on Recent Stock Price Performance

Gulf Resources' management believes, according to the best of its knowledge, that the recent share price volatility is not a reflection of irregularities in the Company's operation, corporate governance or internal controls.  The Company has been and will continue to disclose all material events publicly in a timely fashion.

"We remain committed to maintaining high standards of corporate governance," said Mr. Xiaobin Liu, CEO of Gulf Resources. "We are confident that through the joint effort of our board of directors, management, employees, shareholders and investors, the Company will remain as one of the industry leaders in China's bromine market and a responsible public company committed to maximize shareholder value."

In addition, the Company's management will present at the upcoming Oppenheimer & Co 5th Annual China Dragon Conference in New York City on May 17-19, 2011.  The date, time and location of Gulf Resources' presentation at the conference will be announced once the information is finalized. Interested parties and investors who wish to meet with Gulf Resources' management may contact Oppenheimer & Co directly.

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.