Book 2, Chapter 14: History of the Red Maid

You defeated the wight-lord and brought some semblance of peace to Emelin and his men, the fallen warriors of Arthedain.

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'The wars corrupted this land, drowning it in the blood of innocents. The Lady drowned as well, choking on death and evil while we did nothing to save her. Twice we failed our duty and seven-times cursed were we by the one the Elves called Iarwain Ben-adar.

'When the Lady became the Red Maid, she brought further ruin to her own home, to the land, and to the beasts. She was terrible, and we dared not face her. When there was no more living blood to spill, she slept... until Ivar awakened her once more.

'That is my sad tale. Now go, return to thy master and speak to him of this secret past. Remember our fate, ${CLASS}, and do not fail in thy duty.'

Radagast the Brown is in the tower at the end of the main avenue in Ost Guruth.

Emelin told you his sad tale, then instructed you to return to Radagast the Brown.