Smaug realizes that Lake-town must have helped Bilbo, and flies off in a rage to destroy the town. The Dwarves and Bilbo hear that Smaug has been killed in the attack. The Dwarves reclaim the Lonely Mountain, and horrify Bilbo by refusing to share the dragon's treasure with the Lake-men or the Wood-elves. Bilbo finds the Arkenstone of Thrain, the most precious heirloom of Thorin's family, and hides it. Thorin calls his relative Dáin to bring an army of Dwarves. Thorin and his Dwarves fortify the entrance to the mountain hall, and are besieged by the Wood-elves and Lake-men. Bilbo tries to ransom the Arkenstone to prevent fighting, but Thorin sees his action as betrayal, and banishes Bilbo. Dain arrives, and the army of Dwarves faces off against the armies of Elves and Men. As battle is joined, a host of goblins and wargs arrive to take over the mountain, now that Smaug is dead. The armies of Elves, Men, and Dwarves, with the help of Eagles and Beorn, defeat the goblins and wargs. Thorin is fatally wounded, but has time to make peace with Bilbo. Bilbo accepts only a little of the treasure which was his share, though it still represents great wealth for a Shire hobbit. Bilbo returns to his home in the Shire to find that several of his relatives, believing him to be dead, are trying to claim his home and possessions.