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<TYPE>EX-99.1
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<FILENAME>e602256_ex99-1.txt
<DESCRIPTION>PRESS RELEASE
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      Gulf Resources Announces Asset Purchase of Dong Ying City Liu Hu Area

  Acquisition of 2,318 acres is expected to yield approximately 3,700 tons of
annual bromine production equating to $6.85 million in revenue and $1.8 million
                                 in net income

LOS ANGELES and SHENZHEN, China, June 11, 2007 -- Gulf Resources, Inc. (the
"Company") (OTC Bulletin Board: GUFR - News) a leading producer of Bromine and
crude salt in China through its wholly-owned subsidiary Shuoguang City Haoyuan
Chemical Company Limited (SCHC), announced today that on June 8, 2007 it
completed an asset purchase agreement with Dong Hua Yang, an individual who
controls bromine production property in the Dong Ying City Liu Hu area, for
approximately $6.7 million in total consideration.

The key asset includes a 50-year property lease covering approximately 2,318
acres, or 9.38 square kilometers, which is located in close proximity to SCHC.
The lease is paid in full through maturation on April 30, 2052. The property
maintains proven reserves of approximately 235,000 tons of bromine. Additional
assets to be conveyed in this purchase include the existing bromine production
infrastructure, wells, pipelines, power circuits, and other equipment, as well
as the existing buildings on the property. The property and assets carry a book
value of approximately $7.5 million, which management believes is approximately
seventy percent of the current market value.

The facility is currently producing approximately 3,700 tons of bromine
annually, which equates to $6.85 million in revenues and $1.8 million in net
income at current market prices and is operating at 69 percent capacity
utilization. Gulf Resources plans to invest approximately $3.3 million in new
equipment and property improvements during 2007. These improvements are expected
to increase overall production output by 21.6 percent to more than 4,500 tons of
bromine annually with a target plant utilization rate of between 84 to 89
percent.

"The acquisition of the Dong Ying City Liu Hu area is expected to increase
SCHC's overall bromine production output by approximately 24 percent to over
19,100 tons annually, and salt production by approximately 23.4 percent to
97,500 tons annually and be accretive to 2007 earnings," stated Ming Yang, CEO
of Gulf Resources, Inc. "This acquisition is consistent with our stated plan to
acquire and consolidate local bromine producers while expanding our collective
production capacity and overall output. As the government continues to closely
monitor unlicensed operators, the bromine production and distribution licenses
we maintain have enabled the Company to purchase new reserves at attractive
valuations while providing owners with a way to monetize under utilized assets,
a true win-win for both parties. In addition, this acquisition is expected to
increase our proven bromine reserves to approximately 1.05 million tons. Given
the long duration of these associated land leases, we are building a recurring
business model with attractive margins and strong cash flow, which management
expects will drive significant shareholder value in the coming years."

<PAGE>

Consideration for the asset purchase includes approximately $4.6 million in cash
at closing, a promissory note for approximately $900,000 and 409,795 shares of
restricted Gulf Resources (GUFR) common stock valued at $941,300 based on a
stock price of $2.30 per share.

This acquisition was completed on June 8, 2007 and further details on the terms
of this transaction can be found in the Company's 8-K to be filed with the
Securities and Exchange Commission on June 11, 2007.

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 bromine compounds used in industry and
agriculture, and SYCI which manufactures and sells 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:

Certain statements in this news release may 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 following: the ability of Gulf
to complete the asset purchase of Dong Ying City Liu Hu area, the general
economic and business conditions in the PRC, 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 crude salt, 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.


Investor Relations Contact:
Ethan Chuang (310) 470-2886
Ethan@gulfresourcesco.com

Matthew Hayden
HC International, Inc.
(858) 704-5065
matt@haydenir.com


Source: Gulf Resources, Inc.
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