The Reliance, had previous to leaving Cowes on Phillip Island, struck a rock and damaged her hull. A small amount of water found its way into her bilge. However, it was thought that the vessel's pumps would be able to cope. Leaving Cowes early on a voyage from Western Port to Melbourne, she began taking on water a great rate. The pumps were unable to keep the water down, and when about 3-miles southeast of Cape Schanck; made for shore. At a distance of approximately 2-miles southeast of Cape Schanck, foundered in 17 fathoms (32 metres) of water.
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