Operation underway to capture Charlie Hebdo suspects
Media reports said the hunt is on near the town of Dammartin-en- Goele in northeast of Paris.
"Operation is underway,” said Cazeneuve.
Among the gunmen who killed 12 people were suspected brothers Cherif Kouachi, 32, and Said Kouachi, 34.
Meanwhile reports said shots were also fired in north-east of Paris during a car chase by police to track the suspects.
The two brothers, suspected to be the main culprits in the massacre of 12 people in Wednesday's attack on Charlie Hebbdo, were earlier located as France continued to be dogged by terror with a gunman killing a woman police officer and explosion and shootings taking place in several areas on Thursday.
The whole of France was in mourning for three days for the victims of Wednesday's brutal attack as the national flag was at half mast and a crowd of nearly 40,000 people paid floral tributes to the deceased.
Media reports earlier said two men were located by the manager of a gas service station in north of France. Their description matched with that of Cherif Kouachi and his brother Said.
France witnessed a dark day in its history with unknown gunmen attacking the Paris office of French satirical magazine Charlie Hebdo and killing at least 12 people , including cartoonists and two policemen, as global leaders joined to condemn the incident on Wednesday.
The attack left 10 people injured.
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