The heroes recovered in the house of Hartfast, and take part in the trial of Magric. Ireth Elanessë’s torture is revealed, and Magric gains early sympathy, but her impassioned words spoken against his treachery sway the crowd. Walar spekas up as well against the traitor, less eloquently but more personally. Lastly Grimbar calls for lenience. Hartfast, however, is not a lenient lord, and so he beheads Magric then and there, executing his judgement by his own hand.
The heroes chose to ambush the goblin chieftain, encamped south of Mountain Hall to wait out the daylight before he attacks. In flanking them, making their careful way along stony ledges above the mountain stream, Grimbar falters and then plummets into the waters, disappearing from view. She is presumed dead, and Ermendrud makes a halting attempt at giving a eulogy mid-climb.
They came to a position where they can see the goblin camps, and wait until the signal – a flash of fire and smoke as the men of Mountain Hall toss pots of flaming oil and loose fire arrows down on the goblins. They are driven out in a rage to give chase and return arrows, drawing them away from the heroes and, for a moment, their chieftain.
The heroes ambush the chieftain and his two lumbering bodyguards. In a fierce melee Diltwiler is battered and Ermendrud is wounded, before Grimbar rides into the fray, shouting a challenge to the chieftain.
For he is Naur the One-Ear, an orc who waylaid Grimbar during her journey north, taking her ancestral blade and very nearly her life. She charged, and struck, but Diltwiler finished the orc by leaping on him and driving the Shadowblade the rest of the way into his body. He died instantly, his life seemingly drained away in an instant.
The ambush turned into a rout as Ermendrud brandished Naur’s severed head and Grimbar winded her battle-horn, and the goblins fled into the mountains, followed by the arrows of Hartfast’s men.
The fellowship took time to recover, and were granted sanctuary in Mountain Hall as long as Hartfast rules there. They took refuge in song and their fellowship. Grimbar traveled north to see an ancient ruin of her people, now a waypoint for traveling bands of goblins. Ermendrud traveled south and west, seeking out Radagast, but did not find him until she had turned home in frustration. She still carries the flask he gave her, however.
On their journey north, the fellowship experienced no mishaps, and found once again the lost garden of Hobbit leaf. They also met Gelvira and spent a night at her Hall of the Crossing, built near the Old Ford. They also met Dodinas and Dinodas Took and Agatha Brandybuck, Dinodas’ wife. They are the builders and proprietors of the Easterly Inn, a cozy little place that is perhaps too out of the way to be a commerical success. Ireth, however, provided them with a brand new wooden sign, and the fellowship offered to advertise their services to other travelers. They heard of the only other wayfarers the Inn had seen in recent days, a man from Breeland named Baldor and his son Belco, as well as the three guards they had hired to protect their wagon of trade goods.
The spent their last evening before their journey into the dark begins, camped under the eaves of Mirkwood.