The men, aged 18 and 22, were travelling in a car on the Pettigo Road when the crash occured shortly before 4.30pm.
The road remained closed on Sunday night.
Earlier a man and a woman were seriously injured following a separate crash near Crossmaglen.
Police said they needed urgent hospital treatement after the incident involving a blue Volkswagen Passat on the Dundalk Road at 2pm.
A PSNI spokesman has appealed for anyone who witnessed the collisions to assist them with their inquiries.