Item 1.01. Entry into a Material Definitive Agreement.

On September 25, 2012, Shouguang Yuxin Chemical Industry Co., Ltd., a wholly-owned subsidiary of Gulf Resources Inc. (the "Company"), entered into a Commercial Property Purchase Agreement (the "Agreement") with Shandong Shouguang Vegetable Seed Industry Group Co., Ltd. , a PRC company (the "Seller"), for the purchase of commercial buildings occupying 5,195.87 square meters (or the equivalent of buildings occupying approximately 55,928 square feet) located at North Huaigao Road, Luocheng Sub-district Office in Shouguang City, Shandong Province, P.R.C to replace the old leased office located at No. 99 Wenchang Road, Chenming Industrial Park, Shouguang City, Shandong Province, P.R.C.

The Seller is an affiliate of Mr. Ming Yang, the Company's Chairman. The Company's Board of Directors concluded that the transaction was on terms at least as favorable to the Company as those that could be obtained from nonaffiliated third parties.

The purchase price was approximately RMB36.37 million (equal to approximately US$5.76 million) in cash. The source of the cash used for the purchase was from working capital of the Company. The Company intends to use the property as its new office headquarters.

The foregoing description does not purport to be a complete statement of the parties' rights and obligations under the Agreement or the transaction contemplated thereby or a complete explanation of the material terms thereof. The foregoing description is qualified in its entirety by reference to the English translation of the Agreement attached hereto as Exhibit 10.1.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits. Exhibit Number Description 10.1 English Translation of Commercial Property Purchase Agreement dated September 25, 2012.

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