Battle Realms: Lair of The Lotus was announced on 16th of July 2013 as a sequel to Battle Realms. Later, the project was cancelled due to the lack of budget and Battle Realms on Steam/GOG being in works.
Back in 2001, on the eve of the Battle Realms launch, I was asked what could be expected from a sequel to Battle Realms. My response was simple. “There will never be a Battle Realms 2. As long as fans are interested and supporting Battle Realms (1), we will continue to add to it and grow it. It will never be finished.” Some time after that point I think I was lulled away from that belief and towards the idea of a sequel, but I’ve come back to my original thinking. Battle Realms, to me, is a place; and places grow and change and evolve naturally. They have history and continuity. So, short of something very unexpected, when and if Lair of the Lotus happens, it will be an expansion to Battle Realms rather than a sequel.