Pacific Lottery Corporation Update

Pacific Lottery Corporation (the "Corporation") (TSX VENTURE:LUK)
(FRANKFURT:PCF) is pleased to advise that the performance of its lottery
technology has continue to perform beyond initial objectives and have
experienced further revenue enhancement beyond the recently released 2nd quarter
results which itself demonstrated continued progress and expanded sales growth.
These 2nd quarter results showed the Corporations revenues for the 6 months
period ending June 30th grew to $ 130,878, an increase of 51% over the same
period last year. Additional, the Corporation further advises that it has
continued its program of lowering its cost profile in these difficult economic
times and reports that it continued through the first half of the year to
significantly narrow its net operating losses for this period to $ 384, 884. The
Corporation will continue the ongoing application of these sound fiscal
principles while encouraging continued revenue augmentation in order to assist
in its objective to achieve net positive cash flows in the near term.


In other developments, the implementation process for the launching of the new
mobile phone lottery services in Vietnam has unfortunately been placed in doubt
due to the Government of Vietnam's subsequent requests for additional
clarification to provide certain technical parameters of the proposed technology
prior to implementation. Despite several attempts, the Corporation continues to
be unable to provide sufficient technical parameters to satisfy the officials.
At this time there can be no assurance that the Corporation will be able to
overcome these issues.


The Corporation also advises that it's wholly owned Barbados subsidiary Emerging
Markets Solutions International ("EMSI") on September 13th 2010 successfully
completed an offering for CAN $600,000 worth of non voting preferred share
priced at CAN $ 1.00 per share, with no warrants attached. Further, the
preferred shares carry a cumulative 5 % per annum cash dividend rate along with
certain dividend and distribution rights should the Corporation decide in the
future to issue any. Finally, $400,000 of the total amount of the offered
preferred shares were subscribed for by Oceanic Greystone a company controlled
by an insider Mr. Richard W. DeVries, Chairman of the Board of Pacific Lottery
Corporation. Mr. Devries was joined by two consultants to the Corporation who
also subscribed for a combined $ 133,333 of the offering. The proceeds of the
offering will be used for general working capital purposes.


As well, recently the trading of the Corporation's shares were halted by the TSX
Venture Exchange Inc. pending clarification of certain corporate affairs. The
Corporation apologises for any inconvenience or concerns this action may have
caused and continues working diligently to clarify matters with the TSX Venture
Exchange Inc. in order to resume normal trading activities at the earliest
possible opportunity.


About Pacific Lottery Corporation:

Pacific Lottery Corporation is engaged in the provision of comprehensive
computerize on-line and mobile phone lottery technology and related professional
services for delivery to a growing audience of international customers. Today,
the Corporation exclusively leads the technical support activities for the only
authorised State run on-line lottery program in Vietnam. 


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

SEC 12g exemption 82-4832

Cautionary Statements

Certain statements contained in this news release constitute "forward-looking
statements" as such term is used in applicable Canadian laws. These statements
relate to analyses and other information that are based on forecasts of future
results, estimates of amounts not yet determinable and assumptions of
management. In particular, any statements concerning the timing, content, future
success and completion of the mobile phone lottery services in Vietnam or the
ability to reinstate the trading of the shares of the Corporation in the TSX
Venture Exchange Inc. described in this news release should be viewed as
forward-looking statements to the extent that they involve estimates thereof.
Any statements that express or involve discussions with respect to predictions,
expectations, beliefs, plans, projections, objectives, assumptions or future
events or performance (often, but not always, using words or phrases such as
"expects" or "does not expect", "is expected", "anticipates" or "does not
anticipate", "plans", "estimates" or "intends", or stating that certain actions,
events or results "may", "could", "would", "might' or "will" be taken, occur or
be achieved) are not statements of historical fact and should be viewed as
"forward-looking statements". Such forward looking statements, involve known and
unknown risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Corporation to be materially
different from any future results, performance or achievements expressed or
implied by such forward-looking statements. Such risks and other factors
include, among others, the uncertainty related to negotiating with a foreign
government or with regulatory bodies. Although the Corporation has attempted to
identify important factors that could cause actual actions, events or results to
differ materially from those described in forward-looking statements, there may
be other factors that cause actions, events or results not to be anticipated,
estimated or intended. There can be no assurance that such statements will prove
to be accurate as actual results and future events could vary or differ
materially from those anticipated in such statements. Accordingly, readers
should not place undue reliance on forward-looking statements contained in this
news release.


Forward-looking statements are made based on management's belief's, assumptions,
estimates and opinions on the date the statements are made and the Corporation
undertakes not obligation to update forward-looking statements if these beliefs,
estimates and opinions or other circumstances should change, except as required
by applicable law. The forward-looking statements contained herein are expressly
qualified by this cautionary statement.