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Following the fall of Tobruk, O'Connor continued the advance towards Derna and Mechili, employing the Australian 6th Division and British 7th Armoured Division. On 24 January the 4th Armoured Brigade engaged the BCS deployed on the Derna-Mechili track in support of the Italian XX Corps under General Ferdinando Cona (HQ Giovanni Berta). While the British tankers managed to destroy nine Italian tanks in the confrontation, they also lost seven tanks and were forced to initially retreat. The following day, the Australian 2nd/11th Battalion clashed with pert of the 60th Sabratha Infantry Division and Bersaglieri from the BCS defending Derna airfield and a nearby height. Regia Aeronautica bombers and fighters flew sorties against the Australian battalion as it attacked the determined Italian defences.<ref>https://news.google.com/newspapers?nid=1301&dat=19410201&id=FudjAAAAIBAJ&sjid=BZUDAAAAIBAJ&pg=7277,3450456&hl=en (Fight for Airfield, The Sydney Morning Herald, 1 February 1941) </ref>On 26 January, the Australians capture Derna along with 10,000 residents.
 
Following the fall of Tobruk, O'Connor continued the advance towards Derna and Mechili, employing the Australian 6th Division and British 7th Armoured Division. On 24 January the 4th Armoured Brigade engaged the BCS deployed on the Derna-Mechili track in support of the Italian XX Corps under General Ferdinando Cona (HQ Giovanni Berta). While the British tankers managed to destroy nine Italian tanks in the confrontation, they also lost seven tanks and were forced to initially retreat. The following day, the Australian 2nd/11th Battalion clashed with pert of the 60th Sabratha Infantry Division and Bersaglieri from the BCS defending Derna airfield and a nearby height. Regia Aeronautica bombers and fighters flew sorties against the Australian battalion as it attacked the determined Italian defences.<ref>https://news.google.com/newspapers?nid=1301&dat=19410201&id=FudjAAAAIBAJ&sjid=BZUDAAAAIBAJ&pg=7277,3450456&hl=en (Fight for Airfield, The Sydney Morning Herald, 1 February 1941) </ref>On 26 January, the Australians capture Derna along with 10,000 residents.
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On 27 January, the Australian 2nd/4th Battalion managed to survive a strong regimental-size counterattack from the Sabratha Division near Wadi Derna, when reinforcements from the Northumberland Fusiliers arrived in time to help the Australians.<ref> "At one point the 2/4th Battalion was pinned down and almost overrun by a force of about 1000 enemy infantry. It was only the timely arrival of the Northumberland Fusiliers that checked the Italian attack." (The Western Desert Campaign, 1940-41, Glenn Wahlert, Big Sky Publishing, 2009)</ref>
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On 27 January, the Australian 2nd/4th Battalion managed to survive a strong regimental-size counterattack from the Sabratha Division near Wadi Derna, when reinforcements from the Northumberland Fusiliers arrived in time to help the Australians.<ref> "At one point the 2/4th Battalion was pinned down and almost overrun by a force of about 1000 enemy infantry. It was only the timely arrival of the Northumberland Fusiliers that checked the Italian attack." The Western Desert Campaign, 1940-41, Glenn Wahlert, Big Sky Publishing, 2009</ref>
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That same day, concealed soldiers from the BCS ambushed a column of armoured vehicles of the 6th Cavalry Regiment, taking the survivors prisoners. The advance of other units further to the south of the Wadi Derna eventually threatened the Sabratha and BCS with encirclement and General Cona ordered the defenders to disengage on the night of 28 January. Precise casualty figures for the fighting for Derna and Giovanni Berta have not been compiled but at least 15 Australians soldiers were killed and two RAF crewmen lost their lives when their bomber was shot down.
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That same day, concealed soldiers from the BCS ambushed a column of armoured vehicles of the 6th Cavalry Regiment, taking the survivors prisoners. The advance of other units further to the south of the Wadi Derna eventually threatened the Sabratha and BCS with encirclement and General Cona ordered the defenders to disengage on the night of 28 January. On 4 February, the Italian rearguards again ambush an armoured column from the 11th Hussars Cavalry Regiment<ref> "At dusk on 4 February, after passing through Megara, six of the 11th Hussars' armoured cars that were leading the convoy were ambushed by antitank guns. Three of the vehicles were destroyed anda a number of soldiers were killed or wounded. Several war correspondents were travelling with the Hussars and some were wounded..." An Unqualified Success, Peter Golding, Rosenberg Publishing, 2013</ref>Precise casualty figures for the fighting for Derna and Giovanni Berta have not been compiled, but at least 20 Australians and British soldiers were killed in the ground fighting, and two RAF crewmen lost their lives when their bomber was shot down.
    
General Cona loset a substantial part of the 'Sabratha' and BCS but the Italian soldiers were reported to have fought very well in defence of Derna and Giovanni Berta:
 
General Cona loset a substantial part of the 'Sabratha' and BCS but the Italian soldiers were reported to have fought very well in defence of Derna and Giovanni Berta:
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{{cquote|Jan. 30.—The third major Italian bastion to fall in Libya—Derna, 175 miles west of the Egyptian frontier—was occupied today by British imperial troops after four days of the bitterest resistance offered by the Fascists in the whole of the African campaign. The town had been defended by less than 10,000 Italians, British sources disclosed, but they fought with a violence encountered nowhere else in General Sir Archibald P. Wavell's long continued thrust to the west. <ref>[https://news.google.com/newspapers?nid=1129&dat=19410131&id=utZaAAAAIBAJ&sjid=dmkDAAAAIBAJ&pg=2787,6394016&hl=en British Take Derna After Fierce Fight, Pittsburgh Post-Gazette, 31 January 1941]</ref>}}
 
{{cquote|Jan. 30.—The third major Italian bastion to fall in Libya—Derna, 175 miles west of the Egyptian frontier—was occupied today by British imperial troops after four days of the bitterest resistance offered by the Fascists in the whole of the African campaign. The town had been defended by less than 10,000 Italians, British sources disclosed, but they fought with a violence encountered nowhere else in General Sir Archibald P. Wavell's long continued thrust to the west. <ref>[https://news.google.com/newspapers?nid=1129&dat=19410131&id=utZaAAAAIBAJ&sjid=dmkDAAAAIBAJ&pg=2787,6394016&hl=en British Take Derna After Fierce Fight, Pittsburgh Post-Gazette, 31 January 1941]</ref>}}
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On 4 February, Regia Aeronautica squadrons covering the Italian retreat shot down a British Bleinheim and an Australian Hurricane from 73 Squadron (Pilot Officer Ken M. Millist), but lose a Caproni Ca.133 from 366a Squadriglia and a CR.42 from ''368a Squadriglia'' that day.<ref>[http://surfcity.kund.dalnet.se/italy_camerini.htm <Sergente Maggiore Antonio Camerini]</ref>
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The airforces of both sides had also played a part, and the Regia Aeronautica squadrons shot down a British Bleinheim and an Australian Hurricane from 73 Squadron (Pilot Officer Ken M. Millist) on 4 February, but lost a Caproni Ca.133 from 366a Squadriglia and a CR.42 from ''368a Squadriglia'' the same day.<ref>[http://surfcity.kund.dalnet.se/italy_camerini.htm <Sergente Maggiore Antonio Camerini]</ref>
    
==Battle of Beda Fomm==
 
==Battle of Beda Fomm==
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