Gunmen Held Over Twenty Hostage Demands IS Flag

Sky news reports:
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.

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".

He said his office had received calls from two women being held hostage - and that the gunman could be heard in the background stating his demands.

One of the women appeared "remarkably calm and cool" and asked Mr Burrows to pass a message to her husband.

The other woman who called was "agitated because she didn't think anything was happening".

Mr Burrows said it was a trademark of NSW Police to allow negotiations to go "on and on and on" and that "they are not worried about speeding things up".

But NSW Police commissioner Andrew Scipione had this message for the hostages: "Rest assured we are doing all we can to set you free. We will be looking after your safety as our number one priority."

Martin Place home to the Reserve Bank of Australia and close to the New South Wales state parliament - has been closed off, with several buildings evacuated.

Up to 100 heavily armed police are surrounding the area.

The gunman, who is wearing a black headband with white writing, walked into the cafe just before 10am local time.

Shortly afterwards, hostages were seen holding a black flag with white Arabic text. 

A Lindt executive said there were about 10 staff and "probably 30 customers" in the cafe - but police later said the number was "not as high as 30", although they did not give further details.

Analysing why police had not taken out the gunman, Sky's Foreign Affairs Editor Sam Kiley said: "There are tactical reasons for that.

"If he says there's a bomb inside the building, he may have a dead man’s switch. In other words, if he's shot dead it could go off."

The Australian Prime Minister has convened the National Security Committee for emergency briefings. 

"This is obviously a deeply concerning incident but all Australians should be reassured that our law enforcement and security agencies are well trained and equipped and are responding in a thorough and professional manner," said Mr Abbott.

In the hours since the siege began, a social media campaign has been trending globally, with people posting the hashtag #illridewithyou to show solidarity with Muslims. 

In a separate development, a 25-year-old man was arrested on alleged terrorism offences in Sydney a few hours before the siege began.

He was seized as part of "continuing investigations into the planning of a terrorist attack on Australian soil and the facilitation of travel of Australian citizens to Syria to engage in armed combat".