UPDATE 11.55AM: IT'S been a tragic end to a 40-hour stand-off between police and a man armed with a gun on Dalley St in East Lismore.

At 7.35am this morning, emergency services and bystanders heard the "loud bang" of a firearm being discharged.

Shortly after, police found the 33-year-old man deceased inside the home.

A Northern Star reporter, who was on the scene, described seeing specialist armoured police from the State Protection Support Unit move towards the home and onto the driveway.

About five minutes later, an ambulance was seen driving up to the house.

Two paramedics got out and entered the home and were seen exiting five minutes later.

About 9am, Forensic Service specialists arrived on the scene.

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A police perimeter is still in place with blockades along Dalley St at the intersections of Military Rd and Nielson St, as well as College Rd to Walker St and Oakley Ave.

Lismore High School announced this morning it would remain closed today due to its close proximity to the stand-off and concerns for the safety and well-being of students and staff.

A critical incident investigation has been launched with officers from the Richmond Local Area Command (LAC) to investigate all the circumstances surrounding the incident.

Their investigation will then be subject to an independent review.

Information from both the investigation and independent review will be provided to the Coroner who will determine the cause of death and make any findings about the events leading up to it.

The ordeal began at 4.30pm on Wednesday afternoon, when police received calls over concerns to a man's welfare on Dalley St.

When Richmond LAC officers arrived, the man - who was in possession of a firearm - made a number of threats.

The situation escalated and nearby residents were evacuated from their homes, with many leaving appliances running and doors unlocked.

In the end, more than 40 hours of police negotiations were not enough to resolve the situation without tragedy.

Police and support services move in onto the property and move away from the property after an ambulance approaches the scene after a gunshot was heard. Photo Marc Stapelberg / The Northern Star Marc Stapelberg

UPDATE 9.11AM: A CRITICAL incident investigation has begun following the death of a man in a house in Lismore this morning.

Police were called to the home on Dalley Street, East Lismore about 4.30pm on Wednesday over concerns for a man's welfare.

A police operation was initiated, a perimeter established and several homes nearby evacuated as a precaution.

The operation has been on-going since that time.

A 33-year-old man was found deceased after a loud bang was heard inside the home shortly after 7.30am this morning.

A critical incident team from Tweed/Byron Local Area Command will now investigate all circumstances surrounding the incident.

All information will be provided to the Coroner who will determine the cause of death and make any findings about the events leading to the man's death.

Lismore High School is closed again today due to its proximity to the scene; the incident was not related to the school.

Police are urging anyone with information in relation to this incident to call Crime Stoppers on 1800 333 000 or use the Crime Stoppers online reporting page.

Police on scene this morning. Marc Stapelberg

UPDATE 7.55AM: A REPORTER on the scene has said a loud bang was heard about 7.35am.

The police support unit then moved closer to the premises and onto the driveway.

After about five minutes an ambulance drove up to the house.

Paramedics were seen heading towards the property, and the ambulance then drove away.

Officers from the police support unit are still in the vicinity.

Police blocking off Dalley Street at the intersection of Military Road at 5.30am this morning.Photo Marnie Johnston / The Northern Star Marnie Johnston

UPDATE 6.45AM: LISMORE High School will remain closed again today as the police negotiation situation in East Lismore continues.

Chris Williams Deputy Principal, Chris Williams, wrote a message on the school's official Facebook page.

"Dear Community. Unfortunately, I was updated by police at 6am that the operation in Dalley street has not yet been resolved.

"As a result we have been advised that the school will be non operational again today.

"I apologise to staff, students and parents for the disruption to learning, however, safety has to be the priority.

"We request parents and carers make alternative supervision arrangements for your children today.

"Staff are to report to Kadina High Campus again today and we thank our colleagues at this school for their warm accommodation of us.

"We wish the police well in resolving the situation."

A quiet Dalley Street bathed in police lights at 5.30am this morning.Photo Marnie Johnston / The Northern Star Marnie Johnston

UPDATE FRIDAY 6AM: THE police negotiation situation in East Lismore is still ongoing, as the 37th hour passes.

Dalley Street and Oakley Avenue are both closed at the intersections of Military Road and Nielsen Street, while College Road from Dalley Street to Walker Street is closed, as is Sunshine Place.

The street remains quiet as police attempt to resolve the situation peacefully.

Police have confirmed the situation is still ongoing, but maintain that they are prepared to wait days for a peaceful outcome.

Neighbour at siege 03: A neighbour describes the frustration of not being able to get back to her home.

UPDATE 4.30PM: IT'S been a long 24 hours for Dalley Street residents who are now feeling the strain of not being able to go back to their homes, due to a stand-off between police and an armed man.

One resident described to local media how she was getting 'smelly' as they didn't have any clean clothes and no money, while they are unable to get back to their houses.

UPDATE 3.35PM: NORTHERN Star reporter Leah White confirms the siege is now entering into its 22nd hour and the cordoned off Dalley Street has been very quiet.

Leah siege update 03: Leah White's update at the Lismore siege

Police are treating the situation of a man who is threatening self-harm with extreme caution.

"Obviously everyone is hoping it can soon be resolved...with no injuries," Leah said.

UPDATE 2:50PM: IT IS confirmed the 33 year old man, not a resident of Dalley Street, has been threatening self-harm in one of the houses.

Leah siege update 02: Leah White reports from the scene of the Lismore siege

DALLEY Street resident of 58 years, Earl Dwyer speaks to our reporter Leah White on what he has experienced during the Lismore siege.

Neighbour at siege 02: Earl Dwyer lives near where the siege is happening

UPDATE 12:00PM: POLICE have issued their latest statement regarding the stand-off in East Lismore:

"A police operation is continuing in Lismore on the state's North Coast.

About 4.30pm (Wednesday 16 March 2016), police were called to a home on Dalley Street, East Lismore, over concerns for a man's welfare.

Police from Richmond Local Area Command attended the scene and spoke with a man who made a number of threats. It is believed he is the only person in the home.

Police and protection support unit at the scene of a man with a firearm on Dalley Street in Lismore. Photo Marc Stapelberg / The Northern Star Marc Stapelberg

Police have established a perimeter and specialist units were called to the scene to assist.

Dalley Street is closed between College Road and Military Road; Oakley Avenue is closed between College Street and Military Road.

Nine homes in Dalley Street and Oakley Avenue (adjacent to the house of interest) have been evacuated as a precaution.

Police continue to speak with the man."

Lismore High School is closed today due to its proximity

UPDATE 10.45AM: NEIGHBOURS close to the stand-off in East Lismore have reported hearing gun-shots shortly after police arrived yesterday afternoon.

Nine Dalley Street residents have been evacuated from their houses.

East Lismore, exclusion zone during the police stand-off. Photo Contributed Google maps Contributed

Joyce Stuckey has lived in the same Dalley Street house for 54 years, next door to where the gunman is, said they were ordered out of the area quickly.

"So we're not allowed to go home," she said.

"All my doors are wide open, television's going, fans are running, garage doors open, doors upstairs are all open and we've been out since about 5 o'clock yesterday afternoon.

"We can't get anywhere near the house.

Ms Stuckey said she was worried about not being able to get needed medication.

"I was watching television and I heard the first gunshot, so I just went to the screen door and looked out, but I couldn't see anything and then I thought maybe it wasn't a gun shot," she said.

"Then about five minutes later, I heard another one but I didn't see or couldn't find anybody so we didn't know until the cops then came and said that it had been reported that there had been two gunshots and I said I had heard the two gunshots."

"It wasn't bang bang, because they asked me that, and I said no, it was a good five minutes or so in between."

"We've got no clothes, we've got no medication, we've got no money, we've got no phones, we've got no cars, we've got nothing."

Another neighbour Tom Maxwell, who lives two doors from the gunman and has lived in the area for the last 48 years said the police knocked on his door telling him to get out of the house straight away as there was someone with a gun in the vicinity.

Neighbour at siege 01: Tom Maxwell has lived at Dalley St for 48 years

"We never had a chance (to turn everything off). Everything's still going in the house, tea's still sitting on the sink and we were told just to get out straight away and head up to the corner here," he said.

"We came up here (corner Military Rd and Dalley St) a bit after five and we were sitting on the footpath here until about half past ten last night and then the wife's niece came and picked us up and took us over to North Lismore and we stayed the night there waiting to get back in the house.

"You read about this and it happens in Sydney, away from here, and it's happened at our own doorstep. It's a bit frightening. You don't think these sorts of things (will happen here)."

9.30am: The situation in East Lismore stays the same, around 16-17 hours after police first arrived and have since been in a stand-off with a man threatening self-harm.

It's now 17 hours since the beginning of a siege in Lismore with police in a stand-off with a man threatening self-harm. Marc Stapelberg

UPDATE THURSDAY 7.15AM: The police negotiation situation in East Lismore is still ongoing this morning, police from Richmond Local Area Command have confirmed.

Lismore High School said on their Facebook page this morning that the school would be closed for the day and parents should keep their children at home.

Police suggest people stay away from the area as the situation continues.

Seige two hours on: TWO hours on and police negotiations are still continuing at a firearm siege in East Lismore

UPDATE 7.30PM: TWO hours on and the police negotiation situation is still continuing at a firearm stand-off in East Lismore.

Police are still directing traffic around two blockades at the intersections of Dalley St and Military Rd and Dalley St and Neilson St.

The weather has taken a turn, and heavy rain is now hampering operations.

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UPDATE 6:15PM: AT LEAST two cars of police state protection unit support armoured officers in balaclavas are at the ready for a potential firearms scene on Dalley st.

Police have confirmed the situation in East Lismore is a self-harm, and not an assault, negotiation situation.

They have extended the exclusion zone to the roundabout at Nielson St and Dalley St and beyond the Military Rd and Dalley St intersection.

It is understood the man is still in possession of a firearm.

Firearm involved in police negotiation in East Lismore : Police are involved in negotiations with an East Lismore residents who has possession of the firearm and is threatening self harm.

INITIAL WEDNESDAY 5.45PM: Emergency services are on the scene of a developing situation involving a man who is believed to be armed with a gun at East Lismore.

A photographer and reporter at the scene have said police appear to have an area cordoned off on Dalley St near College St around a house.

Police are negotiating with a man, who is believed to have a firearm, who is threatening harm.

It is not known if the man has a hostage or is threatening to harm himself.

At least five police vehicles, police rescue officers, detectives and paramedics are at the scene.

Dalley St has been closed off for safety reasons around the home the man is believed to be inside.

A NSW Ambulance spokesman said paramedics were called to Dalley St, East Lismore, at 5pm after reports of an assault.