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The army killed seven terrorists in an encounter in north Kashmir's Lolab on Monday.
The gunfight broke out between militants and security forces in Kupwara district of north Kashmir, police sources said.
Security forces launched a "cordon and search" operation in the forest area of Lolab in Kupwara district on Monday afternoon after getting information about the presence of militants there, they said.
The gun battle started as soon as militants opened fire on security forces drawing retaliation, they said.
Intermittent exchange of fire was on till the filing of this report.