While Abdul Aziz Ghazi was captured, his brother remains inside the mosque with a band of hardliners. Earlier 8 explosions were heard in the area, and then calls to surrender. Now it appears that rockets or artillery are in action against the hold-outs who wouldn’t surrender (1200+ students have left, and most of the young children are now out.) Unconfirmed rumors, and some government reports state that there are Jaimsh-e-Muhammed terrorists inside, and the rumors are that a commander from Mehsud’s Taliban is in the mosque. Neither is confirmed however.
UPDATE: People who surrendered say that Rashid is keeping 25 female students hostage surrounding him in the basement; so both brothers hide behind the burqa. Story here.