The police said the gunfight took place in Mangophir area after the terrorists refused to surrender.
"The terrorists were on two motorcycles when a police mobile intercepted them for a routine check up but they tried to drive off and resorted to firing," a senior police official said.
The police were able to capture three of the four terrorists, the official said, adding that they had recovered 30kg explosive material, two 9mm and one 30 bore pistol from their possession.
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