Company: GURE
Filing Date: 2025-04-11
Form Type: 10-K
Source: 0001193805-25-000461
Chunk: 52

Company: GULF RESOURCES, INC.
Filing Date: 2025-04-11
Form: 10-K
Item: Item 1B
Chunk 52
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 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, within the specific area covered by the license during the license
period. The licensee is required to submit a proposal and feasibility studies to the relevant authority and to pay the central government
a natural resources tax levied at 8% of sales. The Company was exempt from paying the fee prior to January 1, 2008. Shandong province
has determined that bromine is to be extracted only by licensed entities.

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Our mineral rights are issued
by the local government and allow for a one year period of mining. The rights provide us with the exclusive rights to explore and extract
natural brine under the leased land and produce bromine and crude salt. The government performs an annual inspection of the company’s
previous year’s state of production & operations at beginning of each year. The annual inspection reviews: (1) whether the production
is safe and if any accidents occurred during the previous year; (2) whether the natural resources tax and other taxes were timely paid;
(3) whether employees’ salary and welfare benefits were timely paid; and (4) whether the Company meets environment protection standards.
Only those companies who pass the inspection receive mineral rights for another one year term. For those companies who do not pass the
inspection, additional mineral rights are not allocated until they can meet the requirements. If there is major safety accident, the government
may revoke the mining permit.

The mining certificate were renewed
in July 2021 with production limit of 24,000 tons of bromine production per year.

On September 21, 2018, we received
a closing notice from the People’s Government of Yangkou Town, Shouguang City informing us that we had to shut down our three bromine
factories (Factory No. 3, No. 4, and No. 11.).

The following is a description
of the land use and mineral rights related to each of the nine properties held by SCHC as of December 31, 2024.

All of the bromine factories are under
rectification process without production.

    Property
    Factory No. 1 – Haoyuan General Factory
  
    Area
    6,442 acres
  
    Date of Acquisition
    February 5, 2007
  
    Land Use Rights Lease Term