The marines were conducting a house-to-house search for militants allied with the Islamic State group who are still occupying parts of Marawi when the battle erupted yesterday, said Lt Colone Jo-ar Herrera, spokesman for the Philippine army's 1st Infantry Division.
He said that about 30-40 militants used civilians as human shields, making it hard for troops to operate, and also positioned themselves in the city's many mosques.
The government had earlier said that the unrest had left 20 civilians, 134 militants and 39 government troops dead. Hundreds of thousands of people have fled the city, parts of which were reduced to rubble by fighting and government airstrikes in an attempt to dislodge the rebels.
"This temporary setback has not diminished our resolve a bit," said military spokesman Col. Edgard Arevalo. "It instead primed up our determination to continue our prudent advances to neutralise the enemy, save the innocent lives trapped in the fight, and set the conditions for the rehabilitation and reconstruction of Marawi."
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