UPDATE: TEN Licola locals are trapped as an out-of-control bushfire heads towards the township.
Victorian Fire Services Commisioner Craig Lapsley confirmed 90 school children at a camp in Licola had been relocated to Traralgon safely but ten locals remained isolated in the town.
There are five fire crews with the residents battling the blaze which is expected to hit between 4pm and 6pm this afternoon.
The Licola Rd has been closed since this morning leaving remaining residents no way to leave.
The blaze is now more than 44,500ha in size and creating spot fires 2-4km in front of it.
Mr Lapsley warned the fire, which still also threatens the townships of Seaton, Heyfield and Glenmaggie, could burn for as long as two weeks if mother nature was not kind.
"This has the potential to be a two-week fire fight," he said.
"We would hope this weekend would be kind to us but there is no rain forecast.
"Without rain or moisture it's very hard to bring it to a controlled position."
He described the fire as difficult and unpredictable and said as the blaze spread into remote bushland it got harder to control from the ground.
There are more than 70 firetrucks, about 200 firefighters and 13 helicopters working to control the fire.
Five homes have already been destroyed in Seaton.
Heyfield incident controller Laurie Jeremiah told a media briefing at Seaton this morning that five homes were believed to have been burnt at Seaton and a family had been trapped in their house but were able to escape.
Mr Jeremiah also confirmed a fire tanker had been burnt.
The crew members took shelter in the vehicle while the fire went over and escaped unharmed, he said.
Mr Lapsley said the extent of damage to livestock and farm land was still unclear but would unfold in coming days and weeks.
"There will be damage to fencing and there will have to be damage to livestock," he said.
"(Damage to livestock) is not something we have been able to calculate but there will be losses in those areas."
Residents have been urged to evacuate, only if it is safe to do so.
An emergency relief centre has been set up at the Sale Baptist Church and animals, including horses, can be taken to the centre.
There is also a relief centre at Traralgon.
Total fire bans have been declared in the Northern County, North East, East Gippsland and West and South Gippsland districts.
For general bushfire information phone the Victorian Bushfire Information Line on 1800 240 667.
Up to date fire information can also be found at the CFA website and on social media websites.