CONTINGENCY	6 Months Ended
Jun. 30, 2011
CONTINGENCY	NOTE 20 – CONTINGENCY The Company and certain of its officers and directors have been named as defendants in a putative securities class action lawsuit alleging violations of the federal securities laws. That action, captioned Snellink v. Gulf Resources, Inc., et al., No. 11-cv-3722 ODW (MRWx), was filed on April 29, 2011 in the United States District Court for the Central District of California. The plaintiff asserts claims for violations of Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder. The complaint alleges the defendants made false or misleading statements in the Company’s Annual Reports on Form 10-K for the years ended December 31, 2008, 2009, and 2010 by failing to disclose material related party transactions and certain facts about the CEO’s prior employment at another company, and by overstating revenue and net income. The complaint seeks damages in an unspecified amount. On July 26, 2011, the Court entered an order appointing lead plaintiffs and lead counsel and requiring lead plaintiffs to file an amended complaint, if any, within 45 days. The defendants are not required to answer or otherwise respond to the complaint until after the lead plaintiffs either decide to proceed on the basis of the original complaint or file an amended complaint. The Company intends to defend vigorously against the lawsuit. The Company currently cannot estimate the amount or range of possible losses of this litigation.

CONTINGENCY

6 Months Ended

Jun. 30, 2011

NOTE 20 – CONTINGENCY

The Company and certain of its officers and directors have been named as defendants in a putative securities class action lawsuit alleging violations of the federal securities laws. That action, captioned Snellink v. Gulf Resources, Inc., et al., No. 11-cv-3722 ODW (MRWx), was filed on April 29, 2011 in the United States District Court for the Central District of California. The plaintiff asserts claims for violations of Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder. The complaint alleges the defendants made false or misleading statements in the Company’s Annual Reports on Form 10-K for the years ended December 31, 2008, 2009, and 2010 by failing to disclose material related party transactions and certain facts about the CEO’s prior employment at another company, and by overstating revenue and net income. The complaint seeks damages in an unspecified amount.

On July 26, 2011, the Court entered an order appointing lead plaintiffs and lead counsel and requiring lead plaintiffs to file an amended complaint, if any, within 45 days. The defendants are not required to answer or otherwise respond to the complaint until after the lead plaintiffs either decide to proceed on the basis of the original complaint or file an amended complaint. The Company intends to defend vigorously against the lawsuit. The Company currently cannot estimate the amount or range of possible losses of this litigation.