"There was an exchange of gunfire between deputies. One of the deputies was injured. Unfortunately, one of our deputies passed away as a result of his injuries," McMahon said.
McMahon said the second deputy was in surgery, but is expected to survive.
Fugitive ex-LAPD officer Christopher Dorner, the person suspected in the shooting, is believed to have barricaded himself inside a cabin in the San Bernardino Mountain community of Seven Oaks this afternoon following the gun battle. As of 4:30 p.m., black smoke and flames could be seen coming from the cabin. An undercover officer at the scene confirmed there was no movement detected inside the structure.
Gunfire erupted in the community in the San Bernardino Mountains around 1:30 p.m. in what media representatives described as a chaotic scene. Authorities have established a command post near Highway 38 and Glass Drive.
San Bernardino County Sheriff's deputies, U.S. Marshals Service deputies and FBI agents began rushing to the Big Bear Valley area after receiving a report of a person resembling Dorner stealing a vehicle in the 1200 block of Club View Drive.
"The vehicle was located at Highway 38 and Glass Road," said sheriff's spokeswoman Jodi Miller. "The suspect fled into the forest and barricaded himself inside a cabin. A short time later there was an exchange of gunfire between law enforcement and the suspect. Sheriff's SWAT is on scene."
Miller did not confirm whether the officers who were shot were San Bernardino County sheriff's deputies. Both officers were flown to Loma Linda University Medical Center for treatment.
At a 3 p.m. press conference at the LAPD, police Commander Andrew Smith said his officers have been sent to San Bernardino International Airport to be on stand-by in case San Bernardino authorities need assistance.
"We're continuing to work our clues while the events up in the San Bernardino Mountains unfold," Smith said.
Four of seven schools in Bear Valley Unified School District were placed on lockdown as a result of the shooting, but students at three of the sites - Baldwin Lake Elementary School, Big Bear High School and Chautauqua High School - were released shortly after 2 p.m. Fallsvale Elementary School remained on lockdown, according to the district's website. The shooting also prompted the closure of Highways 18, 330 and 38, according to Caltrans. Drivers heading uphill on Highway 330 were escorted off the freeway at Highland Avenue. The closure of Highway 38 forced a group of students at Redlands East Valley High School to remain on campus.
REV principal John Maloney said between 30 and 35 students who commute from the mountain area near Angelus Oaks will remain at the school until picked up by family.
Maloney said he made an official statement over the loud speaker at around 1:30 p.m., informing the student body about the incident occurring in Big Bear.
"With high school kids, most have cell phones Facebook and usually know what is going on," Maloney said. "But we made an announcement anyway to make sure they are kept up to date."
REV students who live in that mountainous area often remain on campus because of weather-related road closures. Parents of other children came to the campus to bring food to the waiting students.
The law enforcement officers are part of the team searching for Dorner, an ex-LAPD officer who has been charged with the murder of Riverside police officer Michael Crain and is suspected of killing an Irvine couple.
Officials have focused their search on the San Bernardino Mountains since a truck believed to be Dorner's was found Thursday morning near Big Bear Lake. San Bernardino County sheriff's spokeswoman Jodi Miller said deputies received a call at 12:20 p.m. today regarding a vehicle stolen at Club View Drive in Big Bear Lake. Miller said an occupant of the vehicle resembled Dorner, but it has not been confirmed that it was him.
Police scanner reports indicated law enforcement were also investigating a report of fresh tracks near the corner of Seven Pines and Glass Road in the Big Bear Lake area. There were additional reports that shots were exchanged between a shooter and U.S. Department of Fish and Game personnel.
Andrew Hughan, state fish and game spokesman, couldn't confirm the reports.
"We've got all kinds of conflicting reports so we can't confirm anything right now," he said.
More details to come as this story develops.