A gunman is holding up to 20 people hostage in complete darkness at a cafe in Sydney's financial district.
Chilling footage has emerged of a female hostage apparently trying to communicate with police by miming her throat being cut - while news channels have chosen not to broadcast a video of another hostage relaying the assailant's demands.
Witnesses described seeing the hostages looking "exhausted" and "absolutely petrified".
But as night fell and the siege entered its 14th hour the gunman turned off the lights, meaning people outside could no longer see in.
The siege began at 10am (local time) when the assailant - who was previously known to both Sydney police and media - entered the Lindt cafe in Martin Place carrying a pump-action shotgun.
Shortly afterwards, hostages were seen holding a black flag with white Arabic text.
Footage showed the assailant apparently using one hostage as a human shield.
:: Follow live updates of the siege
Channel Ten spoke to two hostages who said the gunman is claiming to have four bombs - two inside the cafe and two elsewhere in the financial district.
Police are investigating reports the assailant has used hostages' social media accounts to demand a meeting with Australian Prime Minster Tony Abbott.
Some of the hostages have spoken to their families on mobile phones - while five, three male customers and two female staff, have managed to escape.
Journalist Chris Reason, who has a view of the cafe from the Channel 7 building, said the gunman was "extremely agitated" when the hostages fled.
But he told Sky News the cafe had now "gone completely black" - although he could make out a man, thought to be the hostage taker, holding an iPad.
"We can see very little of what is going on inside, which is obviously not good news," said Mr Reason.
"From our position over the last couple of hours we have counted 15 hostages in total. Five of those have escaped.
"They are all ages, all demographics. Fortunately no children that we could see."
Mr Reason said the gunman had been forcing hostages to stand at the window with their hands against the glass - and that they were rotated every two hours.
One woman in that position looked like she had been "crying her heart out", he said.
One of the gunman's reported demands is that an IS flag be brought to the cafe.
Police have confirmed they are working "on a footing" it is a terrorist incident - but they remain "confident" a peaceful resolution can be achieved.
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Gallery: Latest Images From Australia
Two hostages run for cover behind a policeman during a hostage siege in the central business district of Sydney
A hostage runs towards a police officer
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