Barrabus, who is staying with his father Claude in Levytown, meets the elven paladin Melfina, who is traveling with her squire Delbert Drake towards the Cragen Mountains.
Along with Norseman Trond, the unlikely duo assist Farmer Bailey, slaying some pig-eating giant frogs, and discover the body of poor Oliver.
Later, in Levytown, they witness a stream of refugees coming in from Broken Hill. The village has been raided and razed by goblins, led by strange goat-headed men.
A band of goblins raid the Drunken Dragon, but are thwarted by steel and spells. The goblins are marked with a strange brand: a Druidic symbol.
A mysterious character named Bane is curious about this sign, and suggests a scouting party towards Broken Hill.