Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 158

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 2
Chunk 158
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izhou Bay on the Shandong Peninsula of the People’s Republic
of China. Each of the properties is accessible by road. The Yiyang railway line is within 50 kilometers and the Yangkou port is five kilometers
away.

Each of the seven properties contains
natural brine deposits which are extracted through wells and are used to extract bromine and produce crude salt. Bromine is a simple molecular
element which is produced by extracting the bromine ion from natural brine. Crude salt is sodium chloride. Bromine is an important chemical
raw material in flame retardants, fire extinguishing agents, refrigerants, photographic materials, pharmaceuticals, pesticides, and oil
and other industries. Crude salt, also known as industrial salt, is used in a wide range of chemical industries, is the major raw material
in the soda and chlor-alkali industries and can be widely used in agricultural, animal husbandry, fisheries and food processing industries.
Crude salt is also the main raw material for edible salt.

Nature of Ownership Interest in
the Properties

All of the land in the PRC is
owned by the state. Individuals and companies are permitted to acquire rights to use land or land use rights for specific purposes at
no cost. In the case of land used for industrial purposes, the land use rights are granted for a period of 50 years. This period may be
renewed at the expiration of the initial and any subsequent terms. Granted land use rights are transferable and may be used as security
for borrowings and other obligations. The Company does not own any land but has entered into contracts with the local government and original
owners of the land use rights to acquire their rights for a period of 50 years. The contracts required us to pay a one-time fee plus an
annual rent.

Mineral Rights

The Chinese and provincial governments
have enacted a series of laws and regulations relating to the natural resources sector over the past 20 years, including laws and regulations
designed to improve safety and decrease environmental degradation. The “China Mineral Resources Law” declares state ownership
of all mineral resources in China. However, mineral exploration rights can be purchased, sold and transferred to both domestic and foreign
owned companies. Mineral resource rights are granted by the central government permitting recipients to conduct mineral resource activities
in a specific area during the license period. These rights entitle the licensee to undertake mineral resource activities and infrastructure
and ancillary work, in compliance with applicable laws and regulations,