The incident took place when inmates at a sewing plant began a fire in order to escape from the prison.
After the fire was set, several inmates unsuccessfully attempted to escape, reports CBS affiliate WTKR.
35-year-old Correctional Officer Justin Smith and 50-year-old Correction Enterprises Manager Veronica Darden were the two officers killed.
The public safety page has since indicated the facility is under lockdown and that the situation is under control.
The prison near the northeast North Carolina coast can house almost 900 adult, male felons in both high-security and minimum-custody buildings.
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The Pasquotank County Sheriff's Department and the State Bureau of Investigation are investigating the incident.
"All inmates are accounted for", she said, adding, "We've done multiple counts". Four inmates were treated for injuries, the department said.
According to the local school district, an elementary school middle school and high school were placed on lockout for a brief period. Fires set in prison sewing plant. They have been extinguished, the public safety agency said. Several of the injured are employees.
Walker did not name the hospital but a Sentara Healthcare spokesman said Thursday evening that three patients admitted to Sentara Albemarle Medical Center as a result of the prison incident were transferred to Sentara Norfolk General Hospital in Norfolk.
Students were dismissed, but those who ride the bus were required to have a parent at home when the bus arrived.
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