Australia has been dealt a big blow in its bid to win the men's SVNS title after losing to Great Britain in the Los Angeles quarter-finals.
Australia went undefeated in pool play, scoring an upset 24-17 win over New Zealand before getting the best of the United States in an added extra time contest, 17-12.
They capped off the pool with a win over Samoa, triumphing 28-19.
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In a tight contest, Australia and Great Britain found themselves tied up at the end of the second half at 19 points apiece.
Nathan Lawson opened the scoring for Australia before Great Britain ran in back-to-back converted tries either side of half-time.
Henry Palmer drew the gap back when he went the length of the field 10 minutes in. Just two minutes later, Nick Malouf levelled the score.
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However, a string of penalties gave Great Britain the only opportunity it needed to break through and score the final try, three minutes after full-time.
"We played some of our best footy in our three pool games, and regretfully played some of our worst in the last game," said Australia men's sevens coach John Manenti.
"This is a tough competition, and we go from a shot at the final to playing for seventh – but it was in our control, and we missed an opportunity."
Great Britain will face Spain in the semi-final after they stunned Fiji, 21-19.
Australia were as high as third in the standings after their Perth SVNS final appearance but has fallen to fifth after a winless run in Vancouver.
SVNS Los Angeles – Australian men's results
Pool B: Australia 24 defeated New Zealand 17
Pool B: Australia 17 defeated USA 12
Pool B: Australia 28 defeated Samoa 19
QF: Australia 19 defeated by Great Britain 26
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