Sixteenth Hall -- The Lost One's Flesh

In the Sixteenth Hall, defilers and other Orcs, sworn to some dark power, poison their brethren with a fungal disease. The source of this evil lies far beneath the surface of this stronghold, once inhabited by the dwarves. The dwarves in Moria wish only to drive the Orcs and the evil of the Sixteenth Hall away from their former realm.

Description
Stage 1

'So you are the mighty ${CLASS} of whom everyone has spoken so well! Word of your valour and courage has reached my ears, but seeing as I am a disbelieving sort, I would like to see if you are made for the sort of challenge I have to offer you.

'If you are truly all that they say you are, I have a challenge for you: the Lost One of the Sixteenth Hall must be defeated, and I want to see evidence of your actions! I would have you best it in battle and return here with its hide so that I can see what you have done.

'This will not be an easy task, nor is it impossible. Prove yourself in this challenge of mine, and you will receive a rich reward. Oh, and...there is no shame in bringing friends with you on this venture.'

The Lost One is below the Sixteenth Hall, south-east of the Twenty-first Hall where Eilíefr stands.

You have been challenged to prove your great worth by defeating the Lost One and returning with its hide as a trophy of your victory.