Bromine, crude salt and other chemical products are highly desired in many industries in China. These products are essential for the oil and papermaking industries. China is the fourth largest bromine producer worldwide behind the US, Israel and Jordan. The production of bromine is currently over 150,000 metric tons/year in China. Demand for bromine in China continues to outpace supply. Currently, bromine sales worldwide are approximately $2 billion with $300 million originating from China. GFRE has an annual production capacity estimated at 31,400 tons and possesses rights on over 87 square kilometers of property with proven and probable reserves of approximately 2 million tons of Bromine.

Currently, GFRE is the largest producer of bromine in China with a domestic market share greater than 20%. Through targeted complementary acquisitions and further organic growth, the company’s goal is to continue increasing its bromine production each year, while growing its proven reserves. While the international market is large and growing, China currently consumes all the bromine produced domestically, and currently this annual consumption represents only 25% of total worldwide use.

The rising international demand for bromine, coupled with the fact that China will soon become the largest papermaking country in the world is anticipated to have a significant impact on the bromine demand. In addition, based on the predication of Freedonia consulting, the market size of oil chemicals will be $8.1 billion in 2007 growing to $9.2 billion in 2010. This translates to excellent opportunities for us as we continue to aggressively market our specialty chemical products, while introducing new proprietary compounds for customers in the power generation industry.

Developing profitable products:
Bromine is also used in the manufacture of pharmaceutical, fumigants, flame-retardants, water purification compounds, dyes, medicines, sanitizers, inorganic bromides for photography and other items.  The company is developing new products which utilize bromine. Doing so will increase profits and help us towards our goal of becoming a chemical industry leader.

Continuous increase in R&D:
Based on market demand, we will continue to pursue the development of environmentally friendly products. Our company’s R&D team will focus on introducing new products while making improvement to its current product portfolio, with a focus on papermaking chemicals, power generation and pesticides.

High bromine reserve concentration:
Bromine is a non-renewable resource. Bromine is only found in large quantities in four countries: the United States, Israel, Jordan and China.

Legitimate licensed company:
Gulf Resources is one of only six companies in China that possesses an exploration license for bromine. Strictly enforced government regulations prohibit any non-licensed company or person from producing or distributing bromine.

Superior technical know-how:
45% of the current GFRE employees have a college degree or higher and have a wealth of experience in the industry.