Gulf Resources Provides Updates on its Business Operations

Rhea-AI Summary

Gulf Resources, Inc. (Nasdaq: GURE) has reopened its bromine and crude salt facilities in Shouguang, China, on February 21, 2022, following a seasonal closure aimed at reducing winter air pollution. The company anticipates a rapid ramp-up of production, returning to pre-shutdown levels. Bromine prices showed a significant rise from RMB 53,451 to RMB 59,000 per tonne. Additionally, discussions indicate that electricity restrictions for its Yuxin Chemical factory are easing, allowing for the completion and testing of further equipment.

Positive

• Reopened bromine and crude salt facilities expected to return to pre-shutdown production levels.
• Bromine prices increased from RMB 53,451 to RMB 59,000 per tonne.

Negative

• None.

SHOUGUANG, China, Feb. 22, 2022 (GLOBE NEWSWIRE) -- Gulf Resources, Inc. (Nasdaq: GURE) ("Gulf Resources" or the "Company"), a leading manufacturer of bromine, crude salt and specialty chemical products in China today provides updates on its business operations.

Bromine & Crude Salt Facilities Reopening

On Dec. 27, 2021, Gulf Resources announced that the government of Shouguang City had ordered the closing of all bromine facilities during the period from December 28, 2021 to February 21, 2022. The Company believes the seasonal closure is part of governmental plan to curb winter air pollution and improve the efficiency of brine resources.

On February 21, 2022, Gulf Resources reopened its four operating bromine and crude salt facilities. It should take the Company 3-4 days to test its equipment and begin production. The Company expects production to quickly ramp up to the levels achieved prior to the shutdown.

Bromine prices continue remaining very strong. By the time of the shutdown, the price of bromine was RMB53,451. As of February 17, 2022, the price of bromine was RMB59,000 per tonne. (Pricing data from www.sunsirs.com.)

Update on Shouguang Yuxin Chemical Industry Co. Ltd. ( the “Yuxin Chemical”)

While the Company did not receive a formal notice from the government regarding the electricity needed for its Yuxin Chemical factory, discussions with the government have convinced management that the electricity restrictions are being eased. Accordingly, the Company has contacted its suppliers and will have the remainder of the equipment produced and delivered, so the Company can complete installation and begin testing and trial production.

About Gulf Resources, Inc.

Gulf Resources, Inc. operates through three wholly-owned subsidiaries, Shouguang City Haoyuan Chemical Company Limited ("SCHC"), Shouguang Yuxin Chemical Industry Co., Limited ("SYCI"), and Daying County Haoyuan Chemical Company Limited (“DCHC”). The company believes that it is one of the largest producers of bromine in China. Elemental Bromine is used to manufacture a wide variety of compounds utilized in industry and agriculture. Through SYCI, the Company manufactures chemical products utilized in a variety of applications, including oil and gas field explorations and papermaking chemical agents, and materials for human and animal antibiotics. DCHC was established to further explore and develop natural gas and brine resources (including bromine and crude salt) in China. For more information, visit www.gulfresourcesinc.com.

Forward-Looking Statements

Certain statements in this 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, the ability to make future bromine asset purchases, 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.

CONTACT: Gulf Resources, Inc.

Web:	http://www.gulfresourcesinc.com
	Director of Investor Relations
	Helen Xu (Haiyan Xu)
	beishengrong@vip.163.com

FAQ

What updates has Gulf Resources (GURE) provided regarding its bromine production?

Gulf Resources announced the reopening of its bromine and crude salt facilities on February 21, 2022, after a seasonal closure, and expects production to quickly return to previous levels.

How have bromine prices changed recently for Gulf Resources (GURE)?

Bromine prices rose from RMB 53,451 to RMB 59,000 per tonne as of February 17, 2022.

Is Gulf Resources (GURE) facing any electricity restrictions for its Yuxin Chemical factory?

Discussions with the government suggest that electricity restrictions for the Yuxin Chemical factory are being eased, allowing for further equipment installation.