updated 1/18/2013 8:51:46 AM ET 2013-01-18T13:51:46

ALGIERS (Reuters) - Some militants remain holed up in a gas facility in the Algerian desert and are still holding a number of hostages, the Algerian state news agency APS said on Friday.

"(The army) is still trying to achieve a 'peaceful outcome' before neutralizing the terrorist group that is holed up in the (facility) and freeing a group of hostages that is still being held," APS said, quoting a security source.

A military operation rescued a total of 650 hostages, 573 of whom were Algerians, APS said. (Reporting by Lamine Chikhi; Editing by Robin Pomeroy; Editing by Jon Boyle)

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