UPDATED 6.18PM Police have revealed the search warrant that ended in a man being killed in Hamilton last night, was over the supply of methamphetamine and firearms.

LISTEN ABOVE: NZME reporter Belinda Feek spoke to Larry Williams 

Armed officers entered the industrial building on Grasslands Place around 6:30pm yesterday.

A man inside picked up a long-barrelled gun and cocked the weapon, giving the impression he was about to shoot.

Police responded with gunfire, and despite efforts to resuscitate the 36-year-old Hamilton man - he died at the scene.

NZME reporter Belinda Feek told Larry Williams police have confirmed a firearm was presented, but did not elaborate whether it was being pointed at them or if there was an attempt to fire.

She said they have recovered a pump action shotgun from the Grasslands Place property and have confirmed that more than one of the armed offenders squad fired at Mr Marshall.

The area was shut down and guarded overnight.

Police Assistant Commissioner Allan Boreham said they're also speaking to a woman, who was known to the man who was killed.

"We're aware of one other occupant that was in the address in a different part of the building, and that person has been spoken to and we'll continue to speak to them going forward."