<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>e602100_8k-gulf.txt
<DESCRIPTION>CURRENT REPORT
<TEXT>

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT

                         Pursuant to Section 13 or 15(d)
                     of the Securities Exchange Act of 1934

                Date of Report (date of earliest event reported):
                                   May 7, 2007


                              GULF RESOURCES, INC.
                              --------------------

             (Exact Name of Registrant as Specified in its Charter)


Delaware                          000-20936                         13-3637458
--------                          ---------                         ----------
State of                          Commission                        IRS Employer
Incorporation                     File Number                       I.D. Number


        CHEMING INDUSTRIAL PARK, UNIT - HAOYUAN CHEMICAL COMPANY LIMITED,
                     SHOUGUANG CITY, SHANDONG, CHINA 262714
        -----------------------------------------------------------------
                     Address of principal executive offices


                  Registrant's telephone number: (310)470-2886


          -------------------------------------------------------------
          (Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):

|_|   Written communications pursuant to Rule 425 under the Securities Act (17
      CFR 230.425)
|_|   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)
|_|   Pre-commencement communications pursuant to Rule 14d-2(b) under the
      Exchange Act (17 CFR 240.14d-2(b))
|_|   Pre-commencement communications pursuant to Rule 13e-4(c) under the
      Exchange Act (17 CFR 240.13e-4(c))

<PAGE>

Item 1.01. Entry into a Material Definitive Agreement.

On May 7, 2007, Gulf Resources, Inc. ("we" or the "Company") entered into a
Fixed Price Standby Equity Distribution Agreement with eight investors listed
therein (each, an "Investor", collectively, the "Investors"). Pursuant to the
Fixed Price Standby Equity Distribution Agreement, the Company may, at its
discretion, periodically sell to the Investors up to 30 million shares of the
Company's common stock, par value $.001 per share, for a total purchase price of
up to $60 million (a per share purchase price of $2.00 per share). The
Investors' obligation to purchase shares of common stock under the Fixed Price
Standby Equity Distribution Agreement is subject to certain conditions,
including the Company obtaining an effective registration statement for the
resale of the common stock sold under the Fixed Price Standby Equity
Distribution Agreement. The maximum amount of advance under the Fixed Price
Standby Equity Distribution Agreement cannot exceed $10 million. In no event can
the number of shares issued to any Investor pursuant to an advance cause any
Investor to own more than 9.9% of the shares of common stock outstanding.

The commitment period under the Fixed Price Standby Equity Distribution
Agreement commences on the earlier to occur of (i) the date that the
Registration Statement is declared effective by the Securities and Exchange
Commission (the "Effective Date"), or (ii) such earlier date as we and the
Investors may mutually agree in writing.

The commitment period under the Fixed Price Standby Equity Distribution
Agreement expires on the earliest to occur of (i) the date on which the
Investors have purchased an aggregate amount of $60 million shares of our common
stock under the Fixed Price Standby Equity Distribution Agreement, (ii) the date
occurring eighteen months after the Effective Date, or (iii) the date the
Agreement is earlier terminated (in the event that (x) there occurs any stop
order or suspension of the effectiveness of the Registration Statement for an
aggregate of sixty trading days, other than due to the acts of the Investors,
during the commitment period, and (y) we fail materially to comply with any of
the covenants contained in the Standby Equity Distribution Agreement and such
failure is not cured within thirty days after receipt of written notice from the
Investors, provided, however, that this termination provision does not apply to
any period commencing upon the filing of a post-effective amendment to the
Registration Statement and ending upon the date on which such post effective
amendment is declared effective by the SEC).

Item 9.01. Financial Statements and Exhibits.

      (c)   Exhibits.

      99.1  Fixed Price Standby Equity Distribution Agreement


                                       2
<PAGE>

                                   SIGNATURES

      Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Current Report to be signed on its behalf by the
undersigned hereunto duly authorized.

Dated: May 9, 2007


                                                     GULF RESOURCES, INC.


                                                     By: /s/ Ming Yang
                                                         -----------------------
                                                         Ming Yang,
                                                         Chief Executive Officer


                                       3
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