It's a "race against time" for Japanese officials to save Islamic State of Iraq and Syria (ISIS) hostages Kenji Goto and Haruna Yukawa, especially since Prime Minister Shinzo Abe remains adamant that Japan will not yield to terrorists.

"This is a very tough race against time, but the government will do its utmost," he said on Wednesday "We'll make an all-out effort and use every diplomatic route that we have developed to win the release of the two."

"Japan will never yield to terrorism. Japan will do its best in the battle against the cowardice of terrorism, hand in hand with the international community," he added.

ISIS earlier released a video showing the two Japanese men kneeling down and wearing orange jumpsuits, and standing in between them was a masked British man believed to be Jihadist John.

"Although you are more than 8,500 km away from the Islamic State, you willingly have volunteered to take part in this crusade," the masked man said. "You now have 72 hours to pressure your government into making a wise decision by paying the $200 million to save the lives of your citizens."

ISIS demanded the same amount Japan gave in aid to areas affected by the siege of the radical Islamic group. But Abe countered that they are only contributing to the region's peace and stability, and that their aid fund does not affect the ISIS in any way.

Reuters also shared that Goto actually went back to Syria late October last year to save his friend Yukawa.

It was Goto who helped Yukawa go to Iraq in the first place, after the latter pleaded with him that he wanted to see how things are in a conflict zone. The two men went together in June.

"He was hapless and didn't know what he was doing. He needed someone with experience to help him," Goto told Reuters in August.

But while Goto left to go home to Japan, Yukawa went back once again alone in Iraq. His subsequent capture in August outside Aleppo haunted Goto so much so that he was resolved in saving his friend.

"I need to go there at least once and see my fixers and ask them what the current situation is. I need to talk to them face to face. I think that's necessary," said Goto, who became a Christian in 1997, and his faith helped him remain strong amid adversities.