I might repost this in the aviation forum here as I get more information, but this is very appropriate, and ironic since we were just talking about when an engine feels like it's going to go out...
Warbelos, a 135 carrier out of Fairbanks with a 1900 had an engine blow on them in galena today. Not just pretend blow either. 5' or better flames out of the stacks (the exhaust pipes) lapping up against the windows (according to the passengers anyway). I didn't see it happen but got to look around it later today.
There are bits of metal in the exhaust pipes, some are puddled (IE, they were molten when they got into the pipe and then puddled before they cooled). Others might have been, but were a little more "chunky."
The prop is completely stuck. Never a good sign on a free turbine engine (the prop should spin pretty well freely with the engine off).
Autofeather did not work in this case, I wonder if the prop was jammed and that led to the engine sensing torque applied as the rest of the engine was still turning during the failure. After the engine is pulled maybe we'll find out. They were a bit busy at the time (had already passed 80 kts on the takeoff roll) and by the time they got a look at the engine, the prop wasn't turning anymore.
As far as I know, they don't have any way to get the aircraft into the hanger. The military bunkers would work, but power etc has already been cut off and the doors can't be opened. So this might mean the mechanics get to change an engine in snow and subzero temps... well, it's pretty likely now that they get to change an engine in snow and subzero temps. Looks like 2 weeks maybe before they get it done, which is bad for one of my room mates as he's the f/o on that aircraft. But that definately "woke them up" so to speak.

Oh, and there was reportedly a lady screaming persistantly as this all happened.