[Contact: Gulf Resources, Inc. Helen Xu, Board Secretary beishengrong@vip.163.com Email: https://www.gulfresourcesinc.cn Website: CCG Investor Relations Inc. Crocker Coulson, President Phone: +1-646-213-1915 crocker.coulson@ccgir.com Email: http://www.ccgirasia.com Website: Gulf Resources Further Responds to Allegations GFRE SHANDONG, China, May 2, 2011 -- Gulf Resources, Inc. (Nasdaq: The Company further disputes or clarifies the following allegations raised in the report: 1. According to the report,] [Registered capital: 10,990,000 RMB (USD 1,616,176) Paid-up capital: 10,990,000 RMB (USD 1,616,176) Revenues: 110,783,000 RMB (USD 16,291,618) Total tax: 10,446,000 RMB (USD 1,536,176) Total profit: 31,776,000 RMB (USD 4,672,941) Net income: 21,329,000 RMB (USD 3,136,618) Asset: 39,424,000 RMB (USD 5,797,647) (Long-term asset: 0 RMB) Liability: 2,973,000 RMB (USD 437,206) Legal Opinion Letter Shouguang City Haoyuan Chemical Company Limited ("SCHC"): Guangdong] [+86 (536) 567-0008 o o o o Item 8.01 Other Events. (d) Description 99.1 99.2 Press release, dated May 2, 2011]