Head to the cave [M1.2] hidden north-west of the first location [M1.1]  and defeat the demon (LVL4) on the left . He's protecting an artifact - the Deer Antler.
Kill the enemy (LVL 6) standing to the right of the knights cutting down a tree [M1.5] . He's protecting the Elder Staff artifact .
After defeating Sir Strat, go to the very bottom of the tree and go a bit further to the south [M1.4]. On one of crossroads there will be a bearded man with a torch . To the right of it, a Twigleaf (LVL 5) which you have to defeat . Throughout the fight, aim only at the trees. You need to weaken them all the time so they don't deal too much damage during their attack. Try to focus on one enemy and block the other one with walls. When the trees attack, they will be weakened and you will be able to easily finish them off. In return you will receive Treants.
After fighting the knight Varkas [M1.7] , turn right. Beside the chest there will be Sir Nathanson (LVL 8) . Defeat him and open the chest. Inside you will find Dragon Scales.