Duncan Jones, an old friend of Rob's turns up while Rob is away. Danni is suspicious of him though as he seems nervous. The Race is being re-run and none of the McGregor's are going to be competing, however when Josh starts getting teased about Matt being 'too old' to compete - Matt changes his mind.
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. Meanwhile, Duncan is trying to figure out who is stealing cattle.
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. Meanwhile, Duncan also reveals some of his secrets.
Spanish gypsies pass through Paterson's Ridge, and Danni falls in love with Carlos, while Hannah loves Carlos' older brother. Then the town turns against the gypsies after several robberies take place. Colin, who is reading mystery novels, teams up with Matt, and together they reveal the gypsies' innocence.
Nell Frampton sells Matt a bull called 'The Grand Duke', but soon after the bull vanishes and another bull turns up dead. Meanwhile, Emily and Colin move into their home. Jessie gives Emily a music box as a house-warming present, but Emily still wants nothing to do with her.
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. On her way to meet Henry, Danni hurts her ankle, and the dog gets into Langara. Meanwhile, Rob finally asks Montanna to marry him and Emily goes to talk with her mother Jessie.
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. It stirs up mixed feelings as Damien Winters is the man Jessie ran off with when she abandoned Emily.
Dave Turner arrives at Emily and Colin's to claim Josh and take him back to his family. Emily is upset and Josh believes that now Emily is pregnant, she and Colin won't want him around. Josh runs away and he's when found, he reveals the truth behind Dave Turner to Matt and Jessie.
After a long absence, Victoria Blackwood returns to Patterson's Ridge, only to find that the land is gone and she has been left with nothing. Rob proposes, but Victoria turns him down. Depressed, Rob begins gambling, resulting in him losing his share of the stables.
The stables are proving to be hard to financially manage as Rob and Colin get behind in the bank re-payments. Victoria turns down another proposal, this time from Herbert Elliott and she decides that it is time to leave. Meanwhile, Matt has his birthday.
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. Meanwhile, Emily's wagon crashes and she seeks shelton in a cabin, but is held up at gunpoint by a woman.