The ultras of the CPI (Maoist) and its breakaway group Tritiya Prastuti Committee (TPC) exchanged fire near Gudiyang dam at Rampur Bareni village of the district. The two rebel outfits were locked in the gun battle since yesterday and exchanged about 800 bullets under Balumath police station, Superintendent of Police Kranti Kumar told reporters on Wednesday. The encounter ceased after Kumar reached the spot with security forces and the police have launched search operation in the area.