POLICE have called an army bomb squad to Mossy Point this afternoon after an "unexploded navy device" washed up on the shore of the Tomaga River.
The device, said to be an 18-inch phosphorus explosive, was reported to police by a member of the public at around 12.30pm.
Witnesses reported the explosive was making a "hissing" noise and that it was spurting out gas.
Police and Rural Fire Service officers arrived on the scene shortly after and established a 50-metre exclusion zone, Sgt David Crane said.
"The Army Ordinates Unit is on its way and will either take the device away or make it safe," Sgt Crane said.
Residents in nearby houses were warned to keep their doors and windows closed, or "to leave for a few hours".
"These things happen on the Far South Coast all the time with all the naval exercises that are done down here and, sometimes, things go wrong," Sgt Crane said.