<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>e602609_ex99-1.txt
<DESCRIPTION>PRESS RELEASE
<TEXT>

                                  Exhibit 99.1

         Gulf Resources Signs Letter of Intent with Southwest Synthetic
                         Pharmaceutical Corporation Ltd.

  Bromine based Compounds from Gulf Resources subsidiary "SYCI" to be utilized
                    for Southwest Pharmaceuticals Production

LOS ANGELES and SHANDONG, China, September 11, 2007 - Gulf Resources (OTC
bulletin board: GUFR) announced today that its wholly-owned subsidiary,
Shouguang Yuxin Chemical Industry Company Limited ("SYCI"), has signed a letter
of intent with Southwest Synthetic Pharmaceutical Corporation Ltd. and until a
purchase agreement is formalized neither party has an obligation. The
relationship contemplated calls for "SYCI" to become a supplier of a chemical
compound named 3.4.5-Trimethoxybenzaldehyde (T.M.B.) to Southwest. T.M.B.'s are
produced from bromine and provides Gulf Resources with the opportunity to become
vertically integrated while driving end customer costs. T.M.B. is currently
utilized as an intermediary to produce a line of T.M.P. anti-biotic drugs at
Southwest's production facility.

Gulf Resources Inc. CEO Mr. Ming Yang commented that, "This contemplated
relationship is aimed at leveraging SYCI's core research and development
competencies with our bromine production capabilities to segway into new
compounds utilized in pharmaceutical products. Currently, only four companies
possess the T.M.B. formula and Professor Ji, our partner from East China
University of Science and Technology is the fourth. Our recently signed
partnership enables us to utilize this formula for commercialization.
Establishing a relationship with a large, well established Company like
Southwest Synthetic Pharmaceutical Corporation Ltd. is an endorsement for our
entire organization and our new research capabilities. Currently Southwest
Synthetic Pharmaceutical utilizes approximately 500 tons of T.M.B annually,
equating to approximately $7.5 million in product purchases. Further, our
research shows that global demand for T.M.B's is approximately 5,000 tons while
current production supply is between 3,500 and 4,000 tons, creating additional
opportunities to gain market share."

Founded in 1965 and based in Chongging City, Southwest Synthetic Pharmaceutical
Corporation Ltd. is one of the largest developers, manufacturers and exporters
of pharmaceuticals in West China. The Company was listed on the Shenzhen Stock
Exchange in 1997 with the trading code 000788 and in 2006 its revenues were $65
million.

Southwest Synthetic Pharmaceutical Corporation Ltd. produces a broad portfolio
of both bulk pharmaceuticals and preparation compounds through its GMP certified
facility. Four of its products are approved by U.S. FDA, including
Sulfamethazine, Trimethoprim, Sulfamethoxazole, Sulfamethazine Sodium, and
another four have been registered in the European Directorate for the Quality of
Medicines, including Sulfadimidine, Trimethoprim, Sulfamethoxazole, and
Sulfadiazine. The Company also maintains products registered and approved in
Canada, Russia, and India.

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 .

<PAGE>

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 this contemplated relationship with
Southwest Synthetic Pharmaceutical Corporation Ltd., 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, Gulf Resources
     Tel:   +1-714-858-1147
     Email: Ethan@gulfresourcesco.com

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

                                       ###
</TEXT>
</DOCUMENT>
