Returning to the castle with their bogus evidence of the sorcerer's demise, the heroes learn that Vorgulremik was wounded doing battle with Dack's minions after dropping off Arkold. Weary, Tulani and Alptraum decide to clean up and refresh themselves before seeing the dragon, and Arkold has a hearty breakfast.

Later, they go to meet Vorgulremik in his lair, with Ravenia and Lilith, and show him the remains. Something happens as Tulani brings the sorcerer's alleged head to him though – the silver dragonhead pendant she's been wearing to ward off dangerous creatures heats up, even setting her clothes on fire before it melts and begins to spread over her, transforming her into a silver dragon.

The battle is pitched, with Tulani trying to learn how to use the dragon body and faring poorly against Vorgulremik. Alptraum gets Lilith and Ravenia out of the battle, while Arkold goes to the stone sarcophagus and tries to open the lid, intent on smashing whatever the dragon was keeping in there.

Vorgulremik notices Arkold's activities, and tries to stop him, but Tulani intervenes. Alptraum goes to aid Arkold then, and they manage to slide the cover partway, revealing tendrils of black miasma within the coffin. As the lid slides off, Vorgulremik leaps to attack the pair, only to be struck a critical blow by Tulani that drives him onto the open sarcophagus.

Pinned down, the steel dragon's flesh begins to be dissolved by the tendrils, and Alptraum thrusts the spirit dagger (along with the dragon-spell) into Vorgulremik's heart to bind his spirit to the blade. The mouldering corpse's final act is to grab the lid of the coffin and seal it over himself as the miasma takes him.