Army spokesman Lt. Col. Jose Mabanta said soldiers also recovered assault rifles and ammunition as well as jungle packs containing documents left behind by fleeing rebels from the New Peoples Army (NPA), he added.
Umingan police believe a total of 10 guerrillas were killed in the firefight in Barangay Masiil-siil.
Wounded in the clash were Cpl. Melencio Gayla and Pfc. Remegio Fulgencio. Reports said a militiaman, Ronald Parinas, was also wounded.
The Army has been ordered to intensify operations against the NPA in the north following reports they have intensified their recruitment drive and were extorting illegal "revolutionary taxes" from villagers, officials said.
The clash came two days after a Christmas truce expired and follows accusations by communist leaders that the government has been trying to scuttle peace talks.
The NPA is the armed wing of the underground Communist Party of the Philippines.
Last week, the communist leadership accused the government of insincerity, saying it deliberately failed to officially inform Norway of peace talks that were to have been held in Oslo this week. Eva de Leon