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It's Ballarat in 1855. The show opens with the song 'Southerly Bluster'. Irishman Daniel has come to Ballarat to find Jane, the woman who nursed him in the Crimea and who he hopes to marry. They sing 'Saturday Girl'. Daniel gets obsessed with gold while there and goes prospecting and finds a nugget. Jane hates gold because she's seen it corrupt men. Lola Montez arrives in Ballarat with her manager Sam to play at the Victoria Hotel. Daniel forgets Jane and becomes infatuated with Lola when he sees her perform. He jumps on stage to present Lola with his nugget. Dan imagines Lola at the Bavarian Court.In the morning after, Dan feels appalled at what he has done. Dan visits her to claim back his nugget, making Lola feel better. They sing 'Lady Finds a Love'. Lola reads a bad review of the Spider Dance by the local editor, Seekamp. She horsewhips him. Seekamp tells Sam that Lola is not an aristocratic Spaniard but an Irish woman. Lola realises she must seduce Dan to keep her gold nugget. Lola rejects Dan. Sam comes back and is reunited with Lola. Dan winds up with Jane.