Everyone races after the last Kobold. The warlock teleports into the cavern and starts trying to area effect from behind, but gets dogpiled. Everyone else is met just after exiting the waterfall by a host of Kobolds. After several frantic seconds, the warlock is taken out – but Falkrunn manages to revive him. The somewhat thinned-out kobolds are reinforced by several tougher ones, plus a goblin. At this point, most of the party is injured (except Graden). The party proceeds to take out the rest of the kobolds – Cenedra goes around back to concentrate on the goblin leader until she is almost killed, while Gresh finally wades through the minions, only to be tag-teamed by the goblin and the tougher kobolds. The warlock is taken down yet again, and finally bleeds to death since Falkrunn is out of healing. Gresh takes down the goblin, who cries out ‘Kalarel and Lord Orcus, prepare my way!’ Gresh goes down after helping to take out all but two of the kobolds – a wizard and a bruiser. The bruiser goes down fairly quickly – but during a wizardly duel, Graden is taken out just before the kobold wizard is finished off by Falkrunn and Cenedra. Falkrunn manages to revive everyone besides the warlock.
The rest of the party loots the kobold’s lair, and Falkrunn preserves the warlock’s corpse. The party travels back to Winterhaven uneventfully.
In Winterhaven, the villagers have become very nervous. The party goes to Lord Padraig and bargains for a resurection for the warlock, in return for all the kobold’s weapons. Back at the inn, Cenedra and Falkrunn talk to Valthrun about the Keep of the Shadowfells, finding out more information about the history (including a portal to a evil area of the Shadowfells dimension that the keep was protecting.)
Gresh goes out shopping with the treasure from the Kobold’s lair. After not finding any magical items that could help him, he finds a protective amulet that he gives to Graden.