A sniper is locked on to a middle-aged man believed to have explosives strapped to his body, sitting cross-legged next to a younger hostage who is laying on the ground.
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A park has been cordoned off and police, ambulance and firefighters are at the scene near the corner of Koombana Drive and Blair Street.
Police say they are aware of the identity of the man at the centre of the siege, but have not yet releaed further details.
Local media are reporting that the sign contains a demand to police for an individual’s release, however, this has not been confirmed by authorities.
WA Police spokesman Samuel Dinnison confirmed that police have sealed off an area in Bunbury known as Koombana Bay.
Armoured vehicles and heavily-armed officers have extended the exclusion zone around the scene.
Mr Dinnison said it’s unclear what sparked the hostage situation.
According to reports, the man may have explosives strapped to his body. A police negotiator talked to the man as the siege continued into the early hours of this morning.
Emergency services have convened on what is the main thoroughfare into town with dog squad officers also reportedly in attendance.
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It has been reported the metropolitan Tactical Response Group is on the way to the city.
