The party arrived at the outpost of The Mercenaries and spoke to some fellow clan members to get an idea of what had occurred. They heard the tale of the battle for several excited warriors. The raiders had taken several casualties from archers while apporaching the outpost, but once there, Archon had disabled a dozen goblinoids with the wave of his hand. The battle quickly became a route as the goblin leadership fled the outpost.
The other adventuring party arrive that night and apparently were successful in their mission as well, even acquiring a hippogriff egg (which they had traded to the Clan Nalis handler for four warhorses.).
Archon appeared to be in command of the forces and a few members of the party met with him and the clan leadership. They were tasked with tracking down the hobgoblin leader in order to get information on the main mercenary base.
Clan forces had done some initial tracking of the goblins and led the party to the cave hideout, nearer to the mountains. The party quickly defeated the half dozen hobgoblin regulars and their leader at the cave entrance. Deeper in was a more powerful goblin rogue with the ability to darken his surroundings. After Jamven tripped and impaled the rogue, and Blight and Cray dispatched his mount, the party cleared a nearby chamber of three worgs and librated a large amount of goods the goblinoids had been accumulating from their own raids.
After resting for the night, the party continued deeper into the cave system, encountering a maze of tight tunnels. The party was repeatedly accosted by tentacled horrors appearing from holes in the walls, ceiling and floor. Eventually an extremely large creature burst through the wall causing major damage before being brought down by a Ray of Flame from Raybrun and a final desperate blow by Blight.
After resting again in the worg’s chamber, the party continued on dealing with some swarms of bats and an extremely large spider that was able to “harpoon” its prey and drag them to it. The party rested for the night again, and after continued searching were unable to find any sign of the hobgoblin leader.
The party picked up a trail after leaving the cave, and followed, hoping they had been mistaken the first time. They tracked this new group to another cave and entered, finding several bugbears and dire wolves, both living and undead. These creatures were guarding the sealed entrance to The Dwarven Holds that the party was unable to investigate, as a hell hound appeared in a room near the door and attacked the party.
After defeating the beast, the party rested in the room the living bugbears had been using. When they continued, the hell hound returned and was put down a second time. The hound has been guarding a smaller, barricaded door near the larger sealed door, which contained a hobgoblin priest. After breaking down the door, the party was able to quickly bring down the priest, but not before he paralyzed Blight with a severe case of the Shakes and cursed the party with his dying breath. The priest was killed in the struggle, and the party looted him and brought his head (along with the head of the goblin rogue) back to the outpost with them.