Well, explore the surrounding forests too, not only peldvale.
SPOILER/HINT
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- youll have to talk and convince them, or they´ll attack you
anyway, tranzigs way is easier, just go, talk with him, and once you get the map, go there and kill anything that moves
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"I´ve been captured... and I don´t care" -Ertai, Captive of the Blinding Angel