Two prisoners are released from Melbourne's Pentridge gaol; Bill Condy after 6 years and Regan after 20 years for bushranging. They both end up in Haunted Gully in the Great Dividing Range - Regan came back to dig up the gold he had buried with his murdered prospecting mate. The siple son of the farmer who now owned the land has seen the murdered man's ghost often, helps Regan dig up the gold, but when Regan tries to cheat him, murders him. Bill Condy, staying with his cousin the local troopers, witnesses the the murder and helps convict the 'softy' who then goes gully mad. Condy and his cousin dig for gold and earn enough to return to England. (PB)