Sergeant Danneth was last seen on patrol with his squad near Serpent's Coil, just south of Nethergarde Keep. One of the members of his squad stumbled back into the keep, badly wounded and claiming that the entire squad was killed or captured. That soldier died a few hours later, unfortunately. We don't have confirmation that Danneth is dead, but chances aren't good. I can't spare the men to push into the cult's lair, but if you wanted to go and look for the man, I'd not refuse the aid.
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