Dan and Ned Kelly doubted that they could convince the police of their story so they went into hiding, eventually joining up with friends Joe Byrne and Steve Hart. On the 25th of October 1878, Sergeant Kennedy and Constables McIntyre, Lonigan, and Scanlon set off to search for the Kelly Gang. They believe they were in Wombat Ranges north of Mansfield, Victoria. The Mansfield team of police set up camp near two shepherd huts at Strigybark Creek. Upon arrival the team split up into two groups: Kenny and Scanlon went to swearch for the Kelly Gang, while the others, Lonigan and McIntyre remained to guard the camp. Lonigan and McIntyre started firing at parrots, not nowing that the Kelly camp was just a mile away. The Kelly Gang started searching around after hearing the gunshots. The eventually found a police, camped at Stringybark Creek. Ned and Dan Kelly decided to overpower the two officers, then wait to ambush the other two. Ned and Dan made there way over to the police camp and shouted out for the constables to surrender. McIntyre threw his arms up while Lonigan drew his revolver and was shot dead by Ned. When the 2 other officers arrived Constable McIntyre called on them to surrender. Scanlon drew his pistol and was shot dead by Ned as well. Kennedy ran and shot at Ned and Dan seeking for cover behind a tree. In an exchange of gunfire Kennedy was soon hit with a fatal shot. Constable McIntyre however escaped in the confusion uninjured.
After the killings at Stringybark, the Kelly Gang proceeded to carry out two major robberies, at Euroa, Victoria nad Jerilderie, New South Wales.
Euroa - On the 10th of December 1878, the Kelly Gang raided the National Bank at Euroa. The had taken several hostages, obtained all the money and asked the hostages to escort them to Faithful Creek where they were locked up. The gang had shown an exhibition of horsemanship which entertained and suprised the hostages.
Jerilderie - On the Saturday, 8th of February 1879, the Kelly Gang broke into the local police station and too hostage police offivers Richards and Devine. The outlaws the changed into police uniform and mixed with the locals. On Monday the gang rounded up various people and forced them into the back parlour of the Royal Mail Hotel. While Dan and Steve kept the hostages busy Ned and Joe proceeded to rob the local bank. Ned also burned all the townspeople's mortgage deeds in the bank.