Two bodies were recovered after a day-long encounter that broke in Chaanketaar village of Tral in Pulwama district, they said.
The body of one more terrorist was expected to be retrieved from the rubble, they said.
The intelligence inputs as well as the material seized from the encounter site showed that the terrorists belonged to JeM, they added.
The security forces have also recovered M-4 Carbine rifle from the encounter site which was possibly used by the group to carry out sniper attacks on security forces, they said.
Last week, an army jawan and a Seema Shashtra Bal personnel were killed in the sniper attacks in Tral area.