Two men have been arrested in connection with Friday's violent attack at the Pongola Rugby Club in Kwazulu Natal.
Spokesperson Colonel Thembeka Mbele says six armed men wearing balaclavas entered the club in Pongola at 10.30 pm and forced patrons to lie down.
She says one of the patrons drew his firearm and a shoot-out ensued.
One suspect, believed to be in his thirties, was fatally wounded and an unlicensed firearm with seven rounds of ammunition was found next to him.
Colonel Mbele says a 30-year-old patron was wounded during the shootout and died later in hospital.
The two arrested suspects, aged 20 and 26, were nabbed while attempting to flee the country at the Swaziland border.
Police have opened an inquest docket and are also investigating a case of murder, attempted murder, business robbery and possession of an unlicensed firearm.
The Provincial Commissioner praised the Pongola detectives for the speedy arrest of the suspects.
Three suspects are still at large.