When Matt and his family visit Melbourne, they become embroiled in a political plot between English and Russian royalty.

Mr Gleeson and Kathleen travel to Mansfield to collect an old friend who has travelled from England to visit him. When their carriage skids down an embankment, they find themselves stranded and injured in the bush.

Miss Hannah Kirov opens a Russian tea room at the back of the general store to generate more income. The hotel owner though isn't happy with the business he is losing, so he cuts his prices in half.

Jessie McClusky turns up in Paterson's Ridge to run the Railway Hotel. While much of the town doesn't like Jessie, it is Emily's reaction which has Colin worried. It takes a real heart-to-heart for Emily to reveal her secret.

Duncan leaves town just before Rob returns. In town, the stables are going up for auction and Rob wants to buy them, but can't afford it on his own. He must try and convince Colin that they are a good buy.

Foundation Day has arrived and with it brings Henry Wagner to town. Henry is in Patterson Ridge to catch a rabid dog. Danni agrees to meet up with him to help him hunt the dog.

Two teenagers go missing in the scrub so Matt and Colin set off to find them. In town, a man has arrived to see Jessie one last time before he dies.

The Morrell clan turn up to settle an old score with Matt. As luck would have it Matt has left town leaving either Rob or Colin to fight in the duel - if they don't, the Morrell's will burn the town down.

Emily goes into labour while in the cabin shortly after Matt finds her with Nancy. Colin gets ready to fight in the duel, writing a farewell letter to Emily.