NEW : 6 Islamic are freed or escaped , State Department says . U.S. says 6 hostages were killed in the wake of a military operation . Terrorists are `` entrenched '' in a gas refinery with captives , State Department says . The Algeria rejects a reported prisoner exchange offer voiced by a jihadist spokesman .
NEW : 6 Americans are freed or escaped , State Department says . Algeria says 12 hostages were killed in the wake of a military operation . Terrorists are `` entrenched '' in a gas refinery with captives , APS says . The U.S. rejects a reported prisoner exchange offer voiced by a jihadist spokesman .