GULF RESOURCES, INC.

We are currently not a party to any legal or administrative proceedings and are not aware of any pending or threatened legal or administrative proceedings against us in all material aspects other than the legal proceeding disclosed below. We may from time to time become a party to various legal or administrative proceedings arising in the ordinary course of our business, other than the following:

On or about August 3, 2018, written decisions of administration penalty captioned Shou Guo Tu Zi Fa Gao Zi [2018] No. 291, Shou Guo Tu Zi Fa Gao Zi [2018] No. 292, Shou Guo Tu Zi Fa Gao Zi [2018] No. 293, Shou Guo Tu Zi Fa Gao Zi [2018] No. 294, Shou Guo Tu Zi Fa Gao Zi [2018] No. 295 and Shou Guo Tu Zi Fa Gao Zi [2018] No. 296 (together, the “Written Decisions”) were served on Shouguang City Haoyuan Chemical Company Limited (“SCHC”) by the Shouguang City Natural Resources and Planning Bureau (the “Bureau”), naming SCHC as respondent. For more details and information related to the Written Decisions, please see “Note 24 – Loss Contingencies, Notes to Consolidated Financial Statement” contained in this annual report.

Shandong Shouguang Vegetable Industry Group Co., Ltd. and Shandong Shouguang Vegetable Seed Group Co., Ltd. owe RMB15.0 million (Approximate $2.12 million) and RMB10.0 million (Approximate $1.41 million) to Shandong Deepin City Investment Emergency Lending Fund, respectively. A total of nine companies and individuals provided guarantee to these loans, including Shouguang Haoyuan Chemical Co., Ltd. and Shouguang Yuxin Chemical Co., LTD. However, considering the number of guarantors, the total amount of available fund indicated by Shandong Shouguang Vegetable Industry Group Co., Ltd. and legal advice, Gulf Resources believes that this guaranteed loan has limited impact on the company.

Shouguang People's Court on March 17, 2025, Shouguang City Haoyuan Chemical Company Limited (“SCHC”) owes Shouguang Chengyu Trading Co., Ltd. a sum of RMB 226,825.44 for goods. Moreover, it is required that Shouguang Haoyuan Chemical Co., Ltd. pay RMB 50,000 to Shouguang Chengyu Trading Co., Ltd. every month before 15th starting from April 2025, until the debt is fully repaid.

According to the Enforcement Ruling issued by the Intermediate People's Court of Weifang, Shandong Province on December 31, 2025, the enforcement of the Arbitration Mediation Document issued by the Linyi Arbitration Commission in case No. (2003) temporary arbitration judgment No. 1358 is terminated. The court found that, during enforcement, it had already carried out inquiries into, freezes of, deductions from, and judicial auction of the respondents’ assets, and that no additional property available for enforcement had been found. The applicant may apply for reinstatement of enforcement once enforceable conditions arise.