A gunman is holding up to 20 people hostage in complete darkness at a cafe in Sydney.
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.
Earlier, two Arabic flags similar to those used by Islamic State were seen inside the Lindt cafe in Martin Place, the city's financial hub.
Channel Ten spoke to two hostages and said the gunman claims to have four bombs - two inside the cafe and two elsewhere in the financial district.
Police are investigating reports that the assailant has used hostages' social media accounts to demand a meeting with Australian Prime Minster Tony Abbott.
It is now thought officers know the identity of the man - who appears to be carrying a pump-action shotgun - and that he was previously known to the Sydney force.
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 since the siege began.
:: Follow live updates of the siege
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.
The gunman - who has contacted several media outlets from the cafe and reportedly wants an IS flag delivered there - has been seen using hostages as human shields.
Police have confirmed they are working "on a footing" it is a terrorist incident - but they remain "confident" a peaceful resolution can be achieved.
Negotiators are in contact with him.
New South Wales Police deputy commissioner Catherine Burn described it as a "sensitive negotiation".
Food has now been taken into the cafe for the hostages, none of whom are thought to have been harmed.
Channel 9 News reporter Mark Burrows told Sky News the gunman is "quite well known to the media in Sydney".
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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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