According to Arabi 21 news website, new footage released by Velayat Sinai showed the murder of the 16 young men in the restive Sinai Peninsula.
According to the report, most of the victims were beheaded or shot dead.
Previously known as Ansar Bait al-Maqdis, the terrorist outfit has pledged allegiance to ISIS terrorists mainly active in Iraq and Syria.
In October 2014, a state of emergency was declared across the whole Sinai Peninsula following a deadly terrorist attack that claimed the lives of 33 soldiers.
The military launched a high-scale security operation in Sinai in September 2015 following coordinated terrorist attacks on several army checkpoints that claimed the lives of 21 soldiers.
Hundreds of troops and militants have been killed ever since as Egypt struggles to contain the insurgency, PressTV reported.