<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>e602214_ex99-1.txt
<DESCRIPTION>PRESS RELEASE
<TEXT>

                                  Exhibit 99.1

                 GULF RESOURCES PROVIDES 2007 FINANCIAL GUIDANCE

            Management Expects to Report Revenues of $45 million and
                            Net Income of $11 million

LOS ANGELES and SHENZHEN, China, May 29, 2007 /Xinhua-PRNewswire/ - Gulf
Resources, Inc. (the "Company") (OTC Bulletin Board: GUFR) and its wholly-owned
subsidiaries Shuoguang City Haoyuan Chemical Company Limited ("SCHC") and
Shouguang Yuxin Chemical Industry Company Limited ("SYCI"), today announced
financial guidance for 2007.

Management expects to report 2007 revenues of $45 million, an increase of
approximately 150 percent from $17.8 million reported for calendar 2006. Net
income is expected to increase approximately 820 percent to $11 million from the
$1.2 million reported in 2006, which included a $5.3 million non cash equity
compensation charge. These estimates do not include any potential future non
cash charges related to the amortization of goodwill from previously completed
acquisitions.

The guidance provided today includes the February 2007 acquisition of "SYCI" and
the recent asset purchase of a bromine producer named Shouguang City Qinshuibo
Area by the Company's "SCHC" subsidiary. Management expects that its core
bromine business will grow approximately 8.6 percent year over year and that it
will process, produce and ship approximately 10,900 tons of bromine for the 2007
calendar year, equating to $29 million in total revenue. Through new product
introductions, a targeted sales approach, and extensive customer support, the
Company expects its "SYCI" subsidiary to contribute revenue of $16 million,
which equates to 13.4 percent organic growth compared to 2006.

"Management has identified several incremental bromine acquisition opportunities
located in close proximity to its current operations. With a number of these
production facilities not maintaining the appropriate governmental licenses,
this represents an ideal time for "SCHC" to purchase, consolidate and increase
production output and manufacturing efficiencies. Any contemplated acquisition
is expected to be incremental to this guidance," stated Gulf Resources Inc. CEO
Mr. Ming Yang.

"We are experiencing growth in both of our operating subsidiaries, which is
being driven through organic expansion and targeted acquisitions. In our "SCHC"
subsidiary, we anticipate significantly increasing the number of bromine wells
and convey trench lines and leveraging a new integrated production process to
improve yield. Given the supply and demand characteristics in the domestic
market, we are in a position to sell everything we can produce. Further, we
believe "SYCI" was a complementary addition, and given its broad chemical
product portfolio and recent entry into the Power Generation Market we are
optimistic about further growth in this business. We will continue to prudently
manage costs by leveraging purchasing power for raw materials, utilizing our
work force over an expanded production field while passing shipping costs to our
customers, which we anticipate will collectively enable us to further enhance
profit margins on a go forward basis."

<PAGE>

About Gulf Resources, Inc.

Gulf Resources, Inc. operates through two wholly-owned subsidiaries: SCHC which
is engaged in manufacturing and trading Bromine and Crude Salt in China. Bromine
is used to manufacture a wide variety of compounds utilized in industry and
agriculture, and SYCI which manufactures chemical products utilized in oil & gas
field explorations and as papermaking chemical agents. For more information,
please visit http://www.gulfresourcesco.com .

Safe Harbor Statement:

Several statements in this earnings guidance 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, 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. For more information, please contact:

    Ethan Chuang
    Tel: +1-714-858-1147
    Email: Ethan@gulfresourcesco.com

    Matthew Hayden
    HC International, Inc.
    Tel: +1-858-704-5065
    Email: matt@haydenir.com

                                       2
</TEXT>
</DOCUMENT>
