Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 25

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 1
Chunk 25
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ang City, Shandong Province, the Company intended to access
more bromine and crude salt resources by finding new underground brine water resources in the Sichuan Province. On January 30, 2015 we
announced that we had found natural gas resources under our bromine well in Sichuan Province. On November 23, 2015, the Company’s
subsidiary SCHC entered into an agreement with the People’s Government of Daying County in Sichuan Province for the exploration
and development of natural gas and brine resources (including bromine and crude salt). In January 2017, the Company completed the construction
of the first brine water and natural gas well field in Sichuan Province. Subsequently, the Company found some issues related to the water
and other potential impurities in the natural gas during trial production. In resolving the problem, the Company purchased customized
equipment for its natural gas project. The installation of such equipment, including providing piping and electricity, was completed in
July 2018. The Company completed the test production at its first natural gas well in Sichuan Province and commenced trial production
in January 2019.

On May 29, 2019, the Company received
verbal notice from the government of Tianbao Town, Daying County, Sichuan Province, mandating the need for project approval for its Daying
well, encompassing the entire natural gas and brine water project. This also includes approvals for safety production inspection, environmental
protection assessment, and to solve the related land issue. Until these approvals are obtained, the Company must temporarily suspend trial
production at its natural gas well in Daying. Additionally, in compliance with the Chinese government new policies, the Company is required
to obtain an exploration license for bromine and a mining license for natural gas. Pursuant to the Opinions of the Ministry of Natural
Resources on Several Issues in Promoting the Reform of Mineral Resources Management (Trial) promulgated by the Ministry of Natural Resources
of PRC on January 9, 2020, which came into effect on May 1, 2020, privately owned enterprises are allowed to participate in the natural
gas production. The Company is engaged in ongoing discussions with the government of Daying County regarding the establishment of a joint
venture for the exploration and production of natural gas and brine products in Sichuan.

15 

On September 1, 2017, the Company