Superintendent Cobham (Frank Thring) tells (unseen) members of the press that Dan Morgan will not be tolerated if he returns to Victoria.

Morgan (Dennis Hopper) has been shot while stealing a horse. He is rescued by an outcast Aboriginal man, Billy (David Gulpilil), who nurses him back to health in the mountains.

A large number of police have surrounded the Glenrowan Inn. Ned Kelly and his gang attempt to release the hostages, but the nervous police open fire in the darkness and heavy rain.

Ned (Heath Ledger), Dan Kelly (Laurence Kinlan), Steve Hart (Philip Barantini) and Joe Byrne (Orlando Bloom) lie in wait at the police bush camp near Stringybark Creek.

While Ned Kelly (Heath Ledger) dallies with Julia Cook (Naomi Watts), the English wife of his employer, Dan Kelly (Laurence Kinlan) and Joe Byrne (Orlando Bloom) throw Constable Fitzpatrick (Kiri P