A female prisoner is found in the men's quarters, testing the rules of the penal colony. Governor Phillip asks Reverend Johnson to carry out a hanging.

James Freeman enlists Tommy Barratt and Elizabeth Quinn's help in hatching a plot to kill the blacksmith and steal his food.

Reverend Johnson blesses Elizabeth and Tommy's marriage. Governor Phillip halts the building of the church, and Kitty must continue to suffer Major Ross' attentions.

While the camp waits for news of Freeman, who has vanished into the bush, Mary Johnson confides in Anne Meredith. Major Ross questions Timmins about Freeman.

Freeman's last-minute escape from the hangman's noose arouses suspicions. Major Ross suffers a personal loss, and a poker game turns nasty.

In a climate of rebellion, Tommy's foolhardy behaviour puts Elizabeth's future plans at risk as he is sentenced to death.