Gulf Resources Initiates Shares Repurchase Plan

Gulf Resources, Inc.

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.