Gene continues his ways and steals some food from a vendor. He also gets some information about the strange occurences that have been happening in the town.
Kaz wanders to the outskirts where he discovers a girl in a foggy swamp. Kaz thought the girl was in danger, so he tries to help her, but it turns out the girl was simply asleep. The girl was a native half-beast named Lacie who agreed to join them in their investigation of the strange events.
Senthos finds a guard protecting the city gates. The guard also gives information about the weird occurences. Taking advantage of Gene's cunning, they get past the guard.
Exiting the town through the back gate, they find a foggy swamp similar the one Kaz came upon earlier. Amidst the fog, they happen upon a monster nest and also discover Mana Occurences. It was a tough battle, but once the team mastered Mana Occurences, they finished the battle with just a few injuries.
The team now stands in a foggy swamp.