The 15 inmates, including 7 Naxalites, escaped after overpowering the escort police team and prison guards, DIG (Kolhan) Md Nehal said.
The West Singhbhum district administration has sounded a high alert in and around the districts on Tuesday as borders with the adjoining states and districts were sealed, the DIG said.
The incident took place when the headcount of the 45 inmates was in progress at the main entrance of the jail soon after they were brought back to the prison following production in a local court late in the afternoon.
The prisoners overpowered the escort team at the main gate of the jail in their escape bid, but a jail sentry on duty suddenly opened fire, killing two on the spot and injuring three others.
The injured have been admitted to a hospital in Chaibasa, Nehal said.
Rape, molestation and robbery: Uber cabbie's criminal past revealed
What Kejriwal told students at Columbia
Polling in 20 seats in Jharkhand on Tuesday
Life on Mars? NASA's Curiosity suggests so
Argentina stun Germany in Champions Trophy hockey