Company: GURE
Filing Date: 2025-07-03
Form Type: S-3
Source: 0001193805-25-000970
Chunk: 13

Company: GULF RESOURCES, INC.
Filing Date: 2025-07-03
Form: S-3
Chunk 13
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 stock and, if any, any participating preferred stock outstanding at that time, after prior satisfaction of all outstanding debt
and liabilities and the preferential rights and payment of liquidation preferences, if any, on any other series of preferred stock outstanding
at that time.

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Anti-Takeover Provisions Under the Nevada Revised Statutes

Sections 78.411 to 78.444 of the Nevada revised
statutes (the “NRS”) prohibit a Nevada corporation from engaging in a “combination” with an “interested
stockholder” for three years following the date that such person becomes an interested stockholder and place certain restrictions
on such combinations even after the expiration of the three-year period. With certain exceptions, an interested stockholder is a person
or group that owns 10% or more of the corporation’s outstanding voting power (including stock with respect to which the person has
voting rights and any rights to acquire stock pursuant to an option, warrant, agreement, arrangement, or understanding or upon the exercise
of conversion or exchange rights) or is an affiliate or associate of the corporation and was the owner of 10% or more of such voting stock
at any time within the previous three years.

A Nevada corporation may elect not to be governed
by Sections 78.411 to 78.444 by a provision in its articles of incorporation. We have such a provision in our Articles of Incorporation,
as amended, pursuant to which we have elected to opt out of Sections 78.411 to 78.444; therefore, these sections do not apply to us.

Nevada law also seeks to impede “unfriendly”
corporate takeovers by providing in Sections 78.378 to 78.3793 of the NRS, commonly referred to as the “Control Share Act”,
that an “acquiring person” shall only obtain voting rights in the “control shares” purchased by such person to
the extent approved by the other stockholders at a meeting. With certain exceptions, an acquiring person is one who acquires or offers
to acquire a “controlling interest” in the corporation, defined as one-fifth or more of the voting power. Control shares include
not only shares acquired or offered to be acquired in connection with the acquisition of a controlling interest, but also all shares acquired
by the acquiring person within the preceding 90 days. The statute covers not only the acquiring person, but also any persons acting in
association with the acquiring