Police are continuing to question three men in connection with suspected dissident republican activity in Lurgan.
A gun was also recovered following the PSNI operation on Thursday night.
The men were arrested after two cars were stopped in the Kiln Road area of the town.
The men, aged 23, 28 and 35, are being questioned at Antrim police station.
Kiln Road was closed yesterday as police continued their investigation.
Lurgan SDLP councillor Declan McAlinden welcomed the latest arrests.
“There is still a small pocket of dissident activity in Lurgan and Craigavon,” he said.
“A gun was found during this operation and that clearly could have been used for wrong-doing.
“Any acts of terrorism are to be totally condemned and I welcome these arrests by the PSNI.
“The vast majority of people in the Lurgan and Craigavon area want nothing to do with this type of activity.”