Some 200 army troops backed by 50 police and ansars personnel fought the terrorists, believed to be run-away Arakan rebels, for 35 minutes to end a four-day siege to the hideout.

An unidentified rebel died in the gunfight that saw at least 200 rounds of fire exchanged. Another terrorist, Sa Maw Pru, 25, was arrested while the rest melted into the deeper forest.

The list of recovered arms and ammunition runs long. It includes one M-79 rocket launcher, two M-56 grenade launchers, 39 anti-tank grenades, one M-16 assault rifle, a single-barrel gun, a pistol, 388 rounds of ammunition of AK-47, G-3 and M-16 rifles, two walkie-talkies, a radio, combat dresses and backpack. A huge quantity of medicines, a camera and food was also found.

Eight army teams, lead by Major Monirul Islam, launched the operation after three indigenous youths were abducted by the Arakan rebels Friday, two of whom were later released.

The troops pinpointed the camp in the thick forest surrounded by hills at Ruangchhari, some 10km off Bandarban town, and cordoned it off Friday.

"It was a very risky operation and any mistake would have alerted the terrorists," said a soldier who took part in the attack. "The foliage was so thick that vision could stretch hardly 20 yards."

"We were there for four days and very slowly moved deeper and deeper, trying to pin down the camp," said a policeman. "Only Monday night at around 10 could we be 100 per cent sure of their location. And suddenly, the terrorists also sensed our presence."

The silence of the tar-black night was all of a sudden shattered as the rebels opened fire on the troops.

"Suddenly all hell broke loose," the army man said of the moment of the attack. "Bullets whistled past us, hitting the trees, shredding down leaves. We also pulled the trigger."

After about 35 minutes of engagement, the rebels gave up and started pulling back into the hills. The troops chased them, but found it difficult because of the darkness and forest.

"When we suddenly came bumped into a group of the terrorists, there was no time or room for gunfight. It was too close an encounter to use weapons and we had to use our fists in a hand-to-hand combat," described the policeman.

But all but one of the rebels managed to flee away, taking most of the arms and ammunition with them.

"The operation was a daring one and a nefarious group of criminals was busted," Mohammad Nazibur Rahman, superintendent of police in Bandarban, told The Daily Star.

Sources said the rebels might once have belonged to the Arakan Liberation Party, Arakan Army and National United Party of Arakan.

They recently stationed in Bandarban town and recruited some local youths to create a terrorist cartel to extort tolls on river routes and roads. The group also abducted six persons in July and August for ransom.

Sources said the joint forces are now raiding other areas of the hills, looking for more such terrorist camps.