Update 1.40pm:
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The alleged offender believed to be involved in an armed robbery at the Crescent Head Country Club this morning has fled into dense bushland.
A highway patrol attempted to pull over a car heading towards Kempsey along the Crescent Head road at about 10.50am.
The alleged offender exited the vehicle and fled on foot and a police search began.
Inspector Stuart Campbell said police officers have been unable to locate him.
"Unfortunately we have been unable to locate the man. We are asking people to keep an eye out and contact police if the offender is seen," he said.
Local police are being assisted by the dog squad in the search.
"The search will continue this afternoon and there will be an increased number of police patrols in the area."
The alleged male offender is described as being of Aboriginal appearance and wearing a blue shirt with dark pants and white joggers.
Members of the public are urged not to approach the man but to contact Kempsey police on 6561 6199 or Crime Stoppers on 1800 333 000 if they see him.
Earlier:
Police are searching for a third man believed to be involved in an armed robbery at the Crescent Head Country Club in the early hours of this morning.
About 5.30am police were alerted to an armed robbery at the Crescent Head Country Club.
Officers arrived on scene and arrested two males in close vicinity of the club.
A firearm and machete were seized from the scene by police.
Two victims who were inside the Country Club during the incident have been taken to hospital with head injuries and are in a stable condition.
Inspector Stuart Campbell told the Argus police were searching for a third man believed to have been involved in the incident.
"There is a third offender outstanding who was last seen heading south on East St," he said.
"We are appealing for any member of the public who might have information about the incident to contact police."
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