The Philippines has lifted martial law in the volatile southern province of Maguindanao.

Meanwhile, the hostage crisis continues to drag on. Armed rebels have freed two more hostages, but continue to hold 47 others in the mountainous region.

In southern Agusan del Sur province, police have surrounded the area where the hostages are being held. But they said they were giving negotiations a chance.

The team of negotiators is confident some of the kidnappers' demands will be met and remaining hostages will be released soon.

Alfredo Plaza, Spokesman of Hostage Crisis Committee, said, "One of the kidnappers' demands is to disarm the tribal leader in this area. That leader is now sitting down with the crisis committee to discuss the possibility of giving in to the demand."

Almost all of the remaining hostages are men, as most women and children were freed in the past three days.

The hostages' wives gathered in a small chapel to pray for their husbands.

Aida Fabre, Wife of Hostage, said, "I pray that they release my husband. It's very difficult because our child is so young. The people in this village have nothing to do with their conflict. Why did they put us in the middle of this?"

Gunmen took 75 people hostage from an elementary school and nearby homes in lawless Mindanao on Thursday. It came fewer than three weeks after a massacre in the nearby province of Maguindanao that killed 57 people.