Gulf Resources (GURE) Says Continuing Strength in Price of Bromine Should Lead to Improved Sales and Earnings

Gulf Resources, Inc. (Nasdaq: GURE) ("Gulf Resources" or the "Company"), a leading manufacturer of bromine, crude salt and specialty chemical products in China, today announced that continuing strength in the price of bromine should lead to significantly improved sales and earnings in bromine business, especially in the first half of 2017.

Over the past two years, the price of bromine in China has shown continuing strength.

Between 2014 and 2015, the price of bromine increased 9.6%. In the first 9 months of 2016, the price increased by 21.4% from the same period of 2015 and 31.2% for the same period of 2014.

Since the end of the third quarter of 2016, the price of bromine has continued to increase. At the beginning of March 2017, it was $4,142. This represents an increase of 17% from the price in the third quarter of 2016. It also represents an increase of 43.5% from the average price in 2014.

There is no guarantee that pricing will remain at its current level. However, international pricing is very strong. Domestically, supply is being constrained by restrictions in production, limited licensing of mines and factories, as well as the degradation of some domestic facilities. As a result, we expect the pricing of bromine will continue to remain strong.

At these levels, profits in bromine business could have benefit to our bottom line.

We will provide our guidance when we release our results later this month. However, at the present time, in the first half of 2017, for which we have good visibility, we expect increases in sales and earnings for bromine business.

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