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Officers from armed response attended an address on Lothian Road in Middlesbrough last night at around 7:40pm.
An air pistol and £60,000 of cannabis was recovered from the address.
Two men aged 28 and 19 were arrested in connection with the incident and remain in custody.
A police presence will remain in the area whilst enquiries continue.
Anyone with information is asked to contact Cleveland Police on 101 quoting 039839.