Mr. Dean Bethune reports

DARELLE ANNOUNCES FINANCIAL RESULTS FOR THIRD QUARTER OF 2016 AND PROVIDES AN OPERATIONAL UPDATE

Darelle Online Solutions Inc. has released its financial and operational results for the third quarter of 2016, and is providing an operational update.

The full text of Darelle's third quarter results is contained in its unaudited condensed interim financial statements as at and for the three and nine months ended May 31, 2016, and the related management's discussion and analysis, copies of which are available electronically on Darelle's profile on SEDAR and also on Darelle's website.

The company will host a webinar presentation on Thursday, Aug. 6 at 10 a.m. Pacific Standard Time. Management will discuss financial results and provide an operational update on the company. To register for the webinar, please forward your contact details to webinar@darelle.com

2016 third quarter results:

• The company generated revenue of $13,000 during the period compared with nil during the same three-month period in 2015. The company launched the on-line raffle lottery program on April 14, 2016. Revenue realized comprises set-up fees on raffles launched during the quarter.
• The company launched the 2016 B.C. Lions Society Adventure Lottery on behalf of the B.C. Lions Society for Children with Disabilities. The lottery includes an on-line raffle ticket and a 50/50 draw. The B.C. Lions Society for Children with Disabilities is selling the raffle tickets (licence No. 84,080) and 50/50 draw tickets (licence No. 84,082) on-line on the company's website.
• The company launched the Win & Drive, a 1966 Ford Mustang Lottery, on behalf of the Tapestry Foundation for Health Care. The lottery includes an on-line raffle. The Tapestry Foundation for Health Care is selling the raffle tickets (license No. 83,681) on-line on the company's website.
• The company launched the First Cause Ride 50/50 Lottery on behalf of the Vancouver Firefighter's Charity Society. The lottery includes an on-line 50/50 draw. The Vancouver Firefighter's Charity Society is selling the 50/50 tickets (licence No. 86,340) on-line on the company's website.
• The company has entered into agreements to launch on-line raffle and/or 50/50 draws with the following organizations:
  • Crisis Intervention & Suicide Prevention Centre of B.C. -- on-line raffle program;
  • Cystic Fibrosis Canada -- on-line raffle program;
  • Vancouver AIDS Society -- on-line raffle program;
• The company has applied to the Saskatchewan Liquor and Gaming Authority to become a licensed supplier of gaming services in the province of Saskatchewan;
• The company has completed the development of a random number generator (RNG). An RNG can determine a prize winner by conducting an electronic draw using a computer application. Use of the RNG is subject to the certification and approval of the RNG by provincial regulators.
• The company has applied to the Liquor & Gaming Authority of Manitoba to become a licensed gaming service provider in the province of Manitoba.

We seek Safe Harbor.