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NSW: Hostages freed in coastal NSW siege


31 Dec 2008 3:40 PM

SYDNEY, Dec 31 AAP - Four hostages have been released but negotiators are still talking to a gunman who held them captive on a NSW mid-north coast property.

The 41-year-old man took the four people hostage and barricaded himself and them inside a house in Stuarts Point, near Kempsey, after a police chase early on Wednesday.

He had driven into the property during the chase at 5.30am (AEDT).

Police say they secured the release of the four hostages between 8.45am and 11.50am (AEDT), but a standoff with the gunman continues.

"Negotiators remain at the scene where they are speaking with a 41-year-old man," a police spokesman said.

Police have not released the identities of the hostages, or the gunman involved.