After a brief rest (and word is sent to the leader of the town) the group returns to the caves. This time they find hobgoblins occupying what seems to be a temple dug into the hills. One is interrogated and much information is revealed. The Hobgoblins are working from some foreign power called the Nejamen. Like the bugbears, they are here as advanced scouts for a larger force of hobgoblins – nearly 100 in number held up in a nearby keep. They also learn the orcs and lizardmen encountered earlier were also here at the behest of the Nejamen. The looming invasion force grows by leaps and bounds. Word is sent to the Legatus, but no reaction seems forthcoming.

Finally they learn that a barricaded passage leading further into the temple was set up to prevent the undead inside from escaping. Deciding to avoid the walking dead for now, the party tackles the final set of caves – a bandit hideout.

After a brief skirmish, an accord is reached with the bandits. The bandits are hired to scout for the hobgoblin and bugbear forces, with promise of greater reward on successful return.