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Start with talking to all your allies in the Keep – Bevil, Sand, Aldanon, Kana, Torio, Uncus and so on. You’ll get some new information on current events. Deaghun will visit you as well, bearing news of the Circle of the Mere. Let’s begin with sealing some alliances for war that’s upon you now.
HINT: If your character is a paladin, be sure to build a Temple of Tyr in your Keep before you go on this mission – you’ll get a quest that’ll lead you to find the best paladin weapon in the game – the Holy Avenger. It can be found in one of dragon’s treasure chests.
You won’t be let inside the fortress if you don’t have Khelgar on your party. Talk to Khayar and go to the throne room to talk to Keros. He’ll reject your proposal, but on your way out you’ll be approached by Khulmar. He’ll tell you the story of Ironfist Hammer that cannot be lifted without Belt of Ironfist. Picking it up would definitely earn you some respect amongst the dwarves, so.. off you go to Mount Galardrym.
Grab the first ore deposit in the area (1) and climb the mountain. Near the giants’ encampment (2) you’ll meet some prisoners. Free them once you clear the area of enemies (you can kill some of them by pushing the huge stones from above, (3)). You’ll also see another ore deposit nearby (4). Go through the passage to the North (5).
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You’ll meet the giants’ king himself. He’ll tell you that if you agree to kill the dragon that lives nearby, he’ll give you the belt you seek. Go to the dragon’s lair (6). Thol will have another proposal for you – she will help you annihilate the giants. Support whoever you wish in this conflict, either way you’ll have at least one difficult battle ahead of you. Keep in mind that killing the dragon is very hard, but just as rewarding. Her treasure will greatly increase your Keep’s funds, and you’ll get some cool equipment for yourself as well. Notice the ore deposit near the dragon. If you decide to fight her, remember to buff your fire resistance, otherwise you just don’t stand a chance.
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When you’re back to the fire giant king, he’ll betray you and you’ll have to fight him and his men after all (you knew this was coming, didn’t you?). It’s a difficult battle, as you have to face numerous enemies at once. When you manage to win, take the belt from the king’s body and free a drow merchant named Caelryna, who will gladly open a store in your Keep.
Get back to Ironfist Stronghold and talk to Keros once more. After a cut-scene Khelgar will be proclaimed the clan’s leader, but will immediately forward the command back to Keros. The alliance will be sealed, and your fellow dwarf will get to keep the hammer.
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