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SHANDONG, China, Aug. 25, 2011 /PRNewswire-Asia-FirstCall/ -- Gulf Resources, Inc. (GURE.NSDQ) ("Gulf Resources" or the "Company"), a leading manufacturer of bromine, crude salt and specialty chemical products in China, today announced that the Company's subsidiary Shouguang City Haoyuan Chemical Ltd. Co. has signed a compensation agreement with the local government of Yangkou Town, Shouguang City, PRC for costs related to the relocation of the Company's Factory No. 4 on August 22, 2011.

In mid-May 2011, the government requested to recall the leased land, where the Company's original Factory No. 4 was located, for civil redevelopment and agreed to lease another parcel of land to the Company nearby to the existing Factory No. 4.  The operations of the original Factory No. 4 stopped in early July 2011 as the original facilities were demolished and useful plants and machineries were relocated to the new factory.

The local government of Yangkou Town, Shouguang City has agreed to compensate the company RMB 8,599,835 (approximately USD 1.3 million) for its Factory No. 4 relocation expenses and maintenance cost. The Company expects that the new Factory No. 4 will be in operations before the end of 2011.