Muammar Gaddafi's forces have pounded Berber towns in Libya's western mountains with artillery, rebels and refugees said.

Al Jazeera's Anita McNaught, reporting from the Nafusa mountain range, said the rebels claimed to have gained ground in their fight against Gaddafi's army after NATO air strikes.

"A battle raged all day [on Monday]. There are deaths on both sides but Gaddafi's forces retreated," our correspondent said from the remote region that is largely inaccessible to journalists.

"Our town is under constant bombardment by Gaddafi's troops. They are using all means. Everyone is fleeing," Imad, a refugee, said while bringing his family out of the mountains and into Tunisia.

Three rebel fighters were killed in the bombardment of Nalut, a town close to the borders with Tunisia.

Unconfirmed reports said Gaddafi troops were amassed near the town in preparation of an attack.

Misurata also won no respite from two months of bitter siege as Gaddafi's forces bombarded the city after pulling out of the city centre.

NATO, on its part, flattened a building inside Gaddafi's Tripoli compound, in what Libyan officials said was a failed attempt on their leader's life.