The hostage situation at an Algerian gas plant has been brought to an end with more deaths, Defence Secretary Philip Hammond has said.
Seven hostages were reportedly killed and 16 others freed amid reports of a "final assault" by Algerian special forces on the complex that had been taken over by Islamist militants.
Foreign Secretary William Hague said fewer than 10 British nationals were still "at risk or unaccounted for" after a four-day stand-off.
He warned that the country needed to prepare for more "bad news" as the Algerian state news agency APS said the militants took the lives of seven foreign hostages.
Their nationalities have not been specified.
A police checkpoint near the In Amenas gas installation The latest fatalities are in addition to the reported deaths of 12 detainees and 18 terrorists earlier on in the crisis.
Downing Street said Prime Minister David Cameron had spoken to his Algerian counterpart who confirmed the operation to resolve the crisis has ended.
BP chief executive Bob Dudley said 18 of its workers were at the site at the time of the rebel attack and four were still unaccounted for.
Algerian special forces are said by APS to have stormed the natural gas installation in the middle of the Sahara desert. They reportedly killed 11 militants holding out inside the plant.
An ambulance enters a hospital in the town of In Amenas Scotland's First Minister Alex Salmond confirmed eight Scottish residents involved in the hostage crisis were "safe and secure".
Mr Hammond, speaking during a news conference with US counterpart Leon Panetta, said: "The hostage situation has been brought to an end by a further assault by Algerian forces which has resulted in further loss of life."
He said the loss of life was "appalling and unacceptable and we must be clear that it is the terrorists who bear sole responsibility for it".
Philip Hammond speaking at a news conference A local source told the Reuters news agency that 16 other hostages, including two Americans, two Germans and one Portuguese national, were free.
Reuters also reported the plant has been mined by the terrorist group and was being cleared by Algerian troops.
Algerian authorities estimate that around 30 militants took over the In Amenas site on Wednesday.
Earlier, Mr Hague was cautious in his comments on Saturday afternoon, stressing: "This situation is still going on. It remains a very difficult and dangerous situation."
The siege took place at the gas complex in eastern Algeria He continued: "Of course our priority remains the welfare of British nationals caught up in this incident. The large majority of British nationals originally caught up in it are now safe and accounted for.
"As of now, there are fewer than 10 British nationals at risk or unaccounted for but that of course means we must of course continue to prepare ourselves for bad news."
Addressing the wider terrorist threat, he added: "This whole incident underlines the scale and ruthlessness of the terrorist threat that we and other nations face.
"We underline our resolve to deal with that and to defeat such terrorism and murder, working with allies across the world and including in North Africa."
In Amenas in eastern Algeria is near the border with Libya Mr Hague chaired an emergency Cobra meeting earlier on Saturday and a second would be held later today.
A consular team is now on the ground to help the Britons who have escaped and ambassador Martyn Roper is in the town of In Amenas near the gas complex.
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