GULF RESOURCES, INC. — Director's Dealing 2010

Nov 17, 2010

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: GULF RESOURCES, INC. (GFRE)
CIK: 0000885462
Period of Report: 2009-10-24

Reporting Person: Khaleel Richard (Director)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2010-10-24	Common Stock, par value $0.0005 per share	C	452	$8.00	Acquired	452	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2009-10-24	Option to purchase Common Stock, par value $0.0005 per share	$9.65	A	12500	Acquired	2012-10-24	Common Stock (12500)	Direct
2010-10-22	Option to purchase Common Stock, par value $0.0005 per share	$8.00	F	12500	Disposed	2010-10-24	Common Stock (12500)	Direct
2010-11-08	Option to purchase Common Stock, par value $0.0005 per share	$10.43	A	12500	Acquired	2013-11-07	Common Stock (12500)	Direct

Footnotes

F1: Represents shares issued upon the cashless exercise of an option to purchase 12,500 shares of Common Stock at an exercise price of $8.00 per share using a fair market value of the Issuer's stock of $8.30 on the date of exercise.

F2: Represents an option to purchase shares of Common Stock granted on October 24, 2009 to Mr. Khaleel pursuant to the Registrant's 2007 Equity Incentive Plan. The option to purchase shares of Common Stock vests and becomes exercisable beginning on October 24, 2009.

F3: Represent the cashless exercise of an option to purchase shares of Common Stock at an exercise price of $8.00 per share using a fair market value of $8.30 on the date of exercise.

F4: Represents an option to purchase shares of Common Stock granted on November 8, 2010 to Mr. Khaleel pursuant to the Registrant's 2007 Equity Incentive Plan. The option to purchase shares of Common Stock vests and becomes exercisable beginning on November 8, 2010.