TORONTO -- Bullets flew at Exhibition Place early Sunday -- many fired by Toronto Police -- as four people were wounded outside a dance club in a wild incident now under investigation by the province's police watchdog.

Ontario's Special Investigations Unit (SIU) says the gunfire erupted around 2:30 a.m. in a parking near Muzik Night Club on Saskatchewan Rd., just east of Dufferin St.

"Officers heard gunshots and saw a car leaving the area," the SIU said in a statement on Sunday. "When the car failed to stop, officers discharged gunshots at the car."

The vehicle, a dark-blue Honda, continued for several hundred metres despite being hit at least five times, according to investigators.

The car exited Exhibition Place grounds through the Dufferin Gate, travelled north up Dufferin St., then careened off the road, crashing into a snow bank south of King St. W.

The Honda remained there throughout the day as police and the SIU investigated.

Its driver's side was riddled with bullet holes -- one through the windshield, two piercing the driver's window and at least two in the rear door.

Two people in the Honda suffered serious gunshot wounds and were rushed to hospital, according to the SIU.

A third occupant, who was uninjured, was taken into custody.

Police weren't talking because of the SIU's involvement, so it's unclear if they laid any charges. The SIU probes any serious injury or death involving police.

Two other men were found with gunshot wounds in the parking lot where the melee began. One is in stable condition and the other is fighting for his life.
A cop was also hurt when he fell as the Honda allegedly fled the scene.

A huge section of the Exhibition Place grounds and part of Dufferin St. was cordoned off by investigators.

Muzik's president issued a statement distancing the club from the gun violence.

"The shooting occurring ... in a parking lot located on Exhibition grounds did not occur inside Muzik or on the premises owned and operated by Muzik Night Club," Zlatko Starkovski said.

Violence has occurred in the wee hours in recent years on or near Exhibition Place.

On New Year's Day, a man was wounded in stabbing at Muzik.

A year earlier, Mike Pimentel, 24, was stabbed to death just outside the Dufferin Gate on East Liberty St. after ringing in the new year with friends at Liberty Grand, next-door to Muzik.

Another man was stabbed in the leg at Muzik in November 2009.