The third arc (issues 5-9) involves Gambit in Australia and the warring gangs. The leader of an Australian mafia (known as the Viceroy) dies mysteriously (as if drowning in his own room), and the team must protect his mutant children (Lifeguard and Slipstream who were in the dark as to their real father). The mafia and police accuse Gambit of murder of the gang leader and Bishop and Rogue take charge to clear his name. As a team learns Lady Mastermind and Sebastian Shaw are behind everything, the two villains capture Shaw's former assistant, Sage. Caught between the two villains and a mafia gang war, the team is able to rescue Sage, clear Gambit's name, and protect the now two newest members of the team (Lifeguard and Slipstream).