Pacific Lottery Corporation Sells a Lottery Technology License to Chinalotto Affiliate

The Corporation (TSX VENTURE:LUK) (FRANKFURT:PCF) advises that it has sold a
license for its proprietary online lottery technology to Cai Sheng Holdings
Limited ("CSH"), an affiliate of Chinalotto Technology Inc. ("Chinalotto"). This
is the first time the Corporation has sold a license to its proprietary online
lottery technology. The Corporation now expects its business focus to shift as
it changes from a day to day operational management model to one driven
predominantly by the sale of licenses for its technology, with an accompanying
implementation and maintenance fee service. Led by this sale to CSH, the
Corporation intends to sell additional technology licenses and accompanying
implementation expertise, while removing itself from continued costly and labour
intensive day to day operational management and support services for
jurisdictional wide lottery operations. Chinalotto Technology Inc. is the
largest lottery technology supplier in the People's Republic of China, which is
the second largest and fastest growing Lottery market in the world accounting
for over US $ 13.6 billion in gross lottery sales in 2010. 


The Corporation is immediately implementing this new strategy by announcing
today its first technology license sale for gross proceeds of US$ 1.9 million
along with an assignment of the Hanoi Lottery contract to CSH for a royalty
equal to 10 % of their net revenues to be derived from the ongoing operation of
the Hanoi Agreement throughout the remainder of the existing Supply and Services
Contract ("Hanoi contract"). Although the Hanoi contract has tripled its gross
revenues since the launch in October 2008, it has never positively contributed
to the Corporation's bottom line and therefore consistently resulted in net
corporate losses over the entire period. Furthermore, this transaction will
significantly contribute to alleviating the Corporation's current debt burden
and, with the assignment, removes the Corporation from any and all present or
future liabilities, obligations and responsibilities in regards to the operation
of the ongoing online lottery program in Hanoi, Vietnam. Finally, the new shift
in business focus is expected to lay the foundation for the possibility of other
opportunities in the future.


The Corporation is looking forward to embarking on this new approach and has
already held discussions with several other potential license customers. This
deal marks the beginning of a transformation for the Corporation as it pursues
the licensing of its proprietary online lottery technology in furtherance of its
goal to attain profitability.


In other developments, following the transition of the financial reporting
standards for Canadian public companies shifting from Canadian generally
accepted accounting principles ("GAAP") to international financial reporting
standards ("IFRS"), an extension has been provided for by the regulators, which
in respect of the Corporation, will see its first quarter 2011 reporting
released no later than June 29, 2011. 


About Pacific Lottery Corporation:

Pacific Lottery Corporation is engaged in the sale and licensing of its
proprietary computerized on-line lottery technology and related professional
services for delivery to authorised international lottery customers. 


For further information, please visit our website at: www.pacificlottery.ca

SEC 12g exemption 82-4832

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