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A 22-year-old Oamaru man was arrested late yesterday afternoon on a murder charge. He will appear in the Dunedin District Court tomorrow.
That follows the arrest on Friday of an 18-year-old Palmerston man, also on a murder charge.
Police executed search warrants at two residential addresses in Oamaru yesterday afternoon, aided by the armed offenders squad.
"A number of items of interest" to the investigation were found, and they are being forensically examined.
Police still want to talk to several people who either know about the circumstances surrounding Justin McFarlane's death or who appear to have been involved in some way.
A forensic examination of the silver Nissan Skyline car thought to be linked to Mr McFarlane's death is continuing today, along with a scene examination at Mr McFarlane's home in in the rural community of Elderslie.
Police launched a homicide inquiry after Mr McFarlane was found dead at his home in the early hours of Wednesday morning, and about 40 staff are working on the case.