A father and his young daughter have been rushed to hospital after an explosion at Anna Bay last night.
Emergency services were called to a home on Morna Point Road at about 10pm to find the 37-year-old man and his 4-year-old daughter with lacerations and shrapnel injuries.
They've been taken to the John Hunter Hospital in a serious but stable condition and are expected to undergo surgery this morning.
Police say it appears the man had been fossicking around the sand dunes at the former World War 2 military range nearby and found some old ordnance and took them home.
He was handling one of the items last night in the backyard of his home when it detonated.
The Army bomb squad was brought in from Sydney - they removed a number of items, believed to be projectiles.
Police have set up a crime scene as investigations into the incident continue.
It's prompted police to issue a warning to the community not to touch unexploded ordnance if they find any, but to mark the spot and call police immediately.
