The Algerian army is still pursuing "terrorists" at the Algerian gas plant and still searching for hostages at the site, British Prime Minister David Cameron told parliament on Friday.
Cameron said the first stage of the military operation was complete, "but this is a large and complex site and they are still pursuing terrorists and possibly some of the hostages in other areas of the site".
He said Britain believed "significantly" fewer than 30 British citizens were at risk at the In Amenas plant deep in the Saharan desert.
"Last night the number of citizens at risk was less than 30. Thankfully we now know that number has been quite significantly reduced," he said.
Cameron said he could not give any further information on the number of Britons involved because the Algerian military operation was "ongoing", but he hoped it would be resolved soon.
"The Algerian prime minister has just told me this morning they are now looking at all possible routes to resolve this crisis," he said.
The Islamist gunmen first attacked two buses en route to the airfield at the remote desert complex on Wednesday, killing two men including a Briton.
They then attacked the residential compound at the plant before turning their attention to the gas facility itself.
Cameron said he was "disappointed" to have not been informed by the Algerians in advance of the assault on the plant.
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