The party finally delves into the Lost Caverns of Tsojcanth. They discover a number of dangers, from giant bats to guardian golems, fiendish trapped fountains and wandering ghosts, among other things. There is evidence that this place was once indeed a storehouse of Elven treasure, but most of it has obviously been previously looted or cleared out. There is an underground river here as well.
On top of this, there is a strange presence in the caverns – some kind of tall, cloaked or winged apparition with red glowing eyes that seems to lurk in the darkness, always just out of sight. Only Zarunal and Losfal have seen even a glimpse of the thing so far, but it seems to appear when danger is near.
The party exhausts most of their options for proceeding forward into the caverns, but there is one corridor that has yet to be explored.