Six people who offered key tip-offs leading to the location of the suspected terrorists were given 100,000 yuan each (USD 16.6 million).
Individuals and government agencies received cash rewards, state-run Xinhua news agency reported.
More than 10,000 officials and local residents attended the award ceremony held in Hotan Prefecture today, it said.
The terrorist group was identified by police on July 27.
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Locals found the suspects in a corn field in Purgakqi Township of Karakax County and reported to police.
With the help of more than 30,000 volunteers, officers chased the suspects to an abandoned house, where they resisted arrest by throwing explosives into the crowd.
Police fired back and shot dead nine suspects and captured one, the report said.
Early today Xinhua reported that 96 people including 59 militants and 37 civilians were killed in last Monday's attack on July 27 at Shache County, Kashgar Prefecture in Xinjiang, Xinhua reported providing details for the first time.
The dead included 35 Hans and two Uygurs, officials said.
Out of the 31 vehicles smashed in the violent attack, 6 were burnt.
Investigations showed that it was an attack jointly "organised and premeditated" by terrorists both in and outside China, the government said.
This is the first time that China blamed terrorists from outside for an attack.
Police confiscated long knives, axes as well as the terrorists' banners that hailed "holy war".
The attack regarded as one of the worst in recent times, happened when a gang armed with knives and axes attacked a police station and government offices in Elixku Township early on Monday morning.