(Source: PRNewswire)On September 9, Gulf Resources, Inc. (BULLETIN BOARD: GFRE) ("Gulf Resources" or the "Company") issued a press release titled "Gulf Resources Acquires Bromine and Crude Salt Manufacturing Assets" over PR Newswire Asia. In the release, the sentence "Consideration being paid by the Company for the manufacturing assets and the value of the rights to the Leased Property includes RMB112 million (approximately $16.4) million in cash and the issuance of 4,229,366 shares of common stock equal to RMB33.6 million (approximately $4.9 million)" should be replaced with the following sentence: "Consideration being paid by the Company for the manufacturing assets and the value of the rights to the Leased Property includes RMB78.4 million (approximately $11.5) million in cash and the issuance of 4,229,366 shares of common stock equal to RMB33.6 million (approximately $4.9 million)." The corrected press release follows below.

Gulf Resources Acquires Bromine and Crude Salt Manufacturing Assets

NEW YORK and SHANDONG, China, Sept. 9 /PRNewswire-Asia-FirstCall/ -- Gulf Resources, Inc. (BULLETIN BOARD: GFRE) ("Gulf Resources" or the "Company"), a leading manufacturer of bromine, crude salt and specialty chemical products in the People's Republic of China, today announced that one of its wholly- owned subsidiaries Shouguang City Haoyuan Chemical Company Limited ("SCHC") has signed an agreement with three individual residents of the People's Republic of China, Fenqiu Yuan, Han Wang and Qing Yang (the "Sellers"), to acquire manufacturing assets involved in bromine and crude salt production and to lease private land use rights located in Shouguang City Yingli Township Beishan Village ("Leased Property"). Consideration being paid by the Company for the manufacturing assets and the value of the rights to the Leased Property includes RMB78.4 million (approximately $11.5) million in cash and the issuance of 4,229,366 shares of common stock equal to RMB33.6 million (approximately $4.9 million). The price per share is $1.163. After the transaction, the Company will have approximately 126.4 million shares of common stock outstanding.

Upon the closing of the transaction by September 30, 2009, SCHC will acquire the bromine and crude salt assets including buildings, equipment, wells, pipelines, power circuits and inventory owned by the Sellers, and any warranties associated therewith. The assets have been non-operative since January 2009. The filing process for the Company to obtain 50-year 11.02km2 land use rights for the Leased Property is currently underway. SCHC has no relationship with the Sellers or the original operations of the assets being purchased.