You follow the trio of hobgoblins off the road and into the forest to the north. It is not too hard to follow their tracks, as they left not that long ago. The trail winds through the forest, until finally, you approach a clearing. Their is a hill in the center of the clearing, and their is an opening in the hill you can see. The trail seems to go in that direction.
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After sitting there a while, you see movement in the cave, like someone coming out.