"A number of local surfers and bystanders came to the aid of this man, they were incredibly brave in a very challenging situation.
"The Westpac Rescue Helicopter winched in a critical care medical team onto the beach to continue treatment.
"The patient suffered a critical injury to his arm, but despite the best efforts of bystanders, paramedics and other emergency services, the patient couldn't be revived."
Shelly Beach is located at the northern end of the Look At Me Now Headland at Emerald Beach.
Coffs Harbour Lifeguards posted to their Facebook page on Sunday that the three popular surfing spots were closed.
"Emerald Beach, Shelly Beach and Serenity Bay will be closed to all water activity until further notice," the post read.
"Unfortunately, there has been a fatal shark attack in the area. Our sympathies go out to family and friends.
"Please don't enter the water in the area bounded in the below photo. The Department of Primary Industries (DPI) are monitoring the situation.
"We will update this post should there be any further information or changes to the beach status.
"Do not enter the water between Bare Bluff and Moonee beach."