Shadowbane 2 was a rumor in regards to a second Shadowbane game. Since UBIsoft owns the rights to the title Shadowbane, the developers of the original Shadowbane game can not legally create such a game without specific permission from them. As of today, it has been stated several times by game developers that these rumors are nothing more then rumors. There is no Shadowbane sequel in planning or production.
The development crew of Shadowbane, Stray Bullet Games, (formally Wolfpack Studios), have stated that they are working on another fantasy-genre MMO game (see article). It has been stated that this game is still very early in the proof of concept prototype stage and that details regarding the game will be rare. Ashen Temper has stated that it will not be set in a post-apocalyptic or SciFi setting, SBG are using "future fantasy" to describe a world that is having a renaissance.
Stray Bullet Games welcomes your opinions regarding the development of the game on their website, visit the forum here.