Kyuss steals Zyn’s skull and slinks off with Varyk to confront and blackmail the buried drow – Xullraen T’orgh. Kyuss uses the skull to threaten her, indicating it would interfere with her ooze form, and then says that by killing Zyn, the two are even. Kyuss then destroys Xullraen’s body, apparently happy that his work has been done.
While Kharl finds documents confirming his grandfathers death was at the hands of these people, Dakarai accidently connects with the conciousness of Recrentius by touching Zyn’s scrying machine. Unfortunately, before they can experiment with the machine any further, Urllex collapses the scrying room while trying to pry a fake emerald out of a statue in the room.
Leading the party out of the dungeon, Kharl accidently walks straight into a dangerous situation, leading to Lorna being separated from the rest of the party. While the party recover, Lorna re-appears as a captive of a group of hobgoblins, lead by the disabled goblin seer, Kugs. Kugs approaces Urllex and touches her slave-mark, giving her a vision of the future where she stands defiant before a vast army of Alu-Tel, supported by all matter of beast races. Kugs tells Urllex that for the vision to come true, the orcs must have Lightbringer to unite them. Kharl agrees to hand over the weapon, and Lorna is returned. The hobgoblins go deeper into the caves, seeking the underdark.
Lorna leads the group out of the mines, where they manage to spot members of the White Iron Company, who seem to have followed the party to the Spellforge and have captured their horses. Lorna recognises the armour – these are the people that killed her family. Restraining themselves, Urlex and Kharl go down to meet with the commander, and sign documents under duress handing over salvage right of the Spellforge. Urlex puts druid sign on the document, indicating that they should be voided, as Dakarai makes a break for the trees as a distraction.
The party pretends to leave, and camps. Dakarai runs home to Phandalin and gets support from Hudson to retake the spellforge. Lorna gains the support of the salt-marsh bullywugs by communing with nature.
After a few days of watching the White Iron Company pull the spellforge apart, the party takes the excavation crew by suprise, splitting them in half at the entrance, and taking the exterior group captive. A second group arrives and are taken out by Lorna and her bullywugs. Sensing that they might not make it out alive, the captives make a break for it when Kharl, Dakarai and Urllexin are distracted by a trained Bulette.
The second group of soliders make a break for the secondary exit. Dakarai and Hudson hold off most of them, but a pair of soldiers escape back to their base of operations.
The party, aided by the bullywugs and Crossroad Knights, prepare for battle.