Despite a loyal following and praise from the music press – including from Australia's pop newspaper "Go-Set" – the band were almost broke by mid-1970. After they signed to EMI under their progressive rock imprint, Harvest Records, the band went into the studio in August 1970 to make their first official recordings, using producer, Howard Gable (The Masters Apprentices). Rudd described the recording sessions, "had gone into the studio in order to record 'Launching Place Parts I & II', to help promote the Launching Place Festival. When we had finished recording those, Howard asked us did we have any others and I said, 'Yeah, I've got this one called "I'll Be Gone"', which we recorded as an afterthought. But then it became a hit single." Rudd had decided to add a harmonica part to the song.