Gulf Resources, Inc. (NASDAQ:GURE) ("Gulf Resources", "we", or the "Company"), a leading manufacturer of bromine and crude salt in China today issued a press release, which relates to its international expansion plan and Strategic Cooperation Agreement ("Agreement") with a Brazilian company, Montes Verdes Participacoes Ltda. ("Montes Verdes"), entered into on August 20, 2026.

Over the past decade, it has become clear to the management of Company that its position as a U.S. listed Chinese company and its focus on the domestic market has been negatively influenced the price of its stock. Now that bromine prices are rising sharply, the Company has decided that international expansion will best serve the interests of its shareholders and team members.

Accordingly, Company announced its plan to enter into a strategic cooperation agreement with a Brazilian company, Montes Verdes Participacoes Ltda.

Montes Verdes is a Brazilian mining company specializing in the exploration of gold, manganese, lithium, bromine and rare-earth minerals, as well as vegetable seed breeding and fertilizer. Montes Verdes has extensive resources. Gulf Resources has technology and experience extracting and producing these resources.

Under the strategic agreement, the two companies will establish a joint venture company to integrate their respective industrial resources, technological strengths, market channels and operating capabilities to build a scalable international business. Through this in-depth strategic cooperation, the parties intend to optimize Gulf’s industrial footprint, broaden overseas profit channels, strengthen Gulf’s core competitiveness, and steadily improve market capitalization and overall profitability.

The bromine and lithium resources in the mining areas held by Monte Verdes will provide a solid foundation and broad scope for in-depth strategic cooperation. The parties intend to expand their international market presence, establish channels for overseas business development and advance their respective global industrial strategies.

In the agreement, Montes Verdes guarantees that if the 2027 sales revenue consolidated into the Gulf listed-company system shall be no less than $180 million. In addition, it guarantees annual sales growth of no less than 20% in each of the following five years. If the 2027 target is achieved and profitability is at or above industry levels, additional shares of Gulf may be issued based on the average price-to-earnings ratio for the relevant year.