The exchange resulted in a criminal shot dead and several others wounded with many more believed to be wounded and on the run after rolling off the mountain tops of West Taraka where they had been camping.
Metropolitan Superintendent Anthony Wagambie Jnr confirmed the shoot-out adding that police has acted on intelligence that the gang linked to the Lae International Hotel, Pelgens Supermarket and several major robberies had been camping there.
Wagambie said the syndicate had received a big blow after police busted their hideout with casualties as a result.
Police recovered AR15 A2 rifle, factory made shot gun, seven homemade guns, nine hand held radios, live ammunitions, two uniforms of a security firm and three uniforms of a service station.
Wagambie has called on health facilities in the city to report to police any persons fronting up with bullet wounds.
Since the commencement of police special operations in recent string of robberies, police have been making many arrests.
Wagambie has commended his team of investigations, members of the mobile squad 13 and task force for their tireless efforts.
He also thanked the Lae Chamber of Commerce and several business houses for assisting with fuel and assured the public that his men were working around the clock to ensure those criminals were brought to justice.