They get to Lakeside, where they go off to the "Only Mountain", where Bingo asks if the dwarves are going to finally tell him why he's there. Upon hearing that he has to go down a chimney, Bingo is accidentally thrown down said chimney when Mori promises to tell him the truth, and meets the dragon Smug, who is actually very friendly and even offers him tea. Smug says he hasn't made any enemies and doesn't know of anyone who would kill him. He is worried he has driven away the Lakesiders' business so he says he'll fly over to talk. But the dwarves are angry and tell Bingo that Gandef was a dwarf, he has changed into a wizard, and he'll now change into a dragon because that's nature and that's where dragons come from. Smug is shot dead at Lakeside by Lard the Bowman, and twenty thousand gobblins led by the Great Gobblin attack, but the six remaining dwarves led by Mori, five hundred men led by Lard, five hundred elves led by Ellesquare, and Bingo, led by himself, fight them. At the end, most of the men and elves are massacred, three more Dwarfs die, Mori is severely injured and the gobblins swarm round them demanding the Thing®, but Bingo tricks them by giving them the Barking Stone, which they believe is the Thing® and whispers in it "war", which causes Gandef's dragon breath to erupt from the Only Mountain's chimney and kill all the gobblins, which encircles the remaining soldiers of the other four armies. After the Battle of the Five Armies has ended, Mori dies in Bingo's arms, which finishes off in a style of a Looney Tunes ending and thus only two Dwarfs of the company have survived the quest. Gandef is confirmed and revealed to be a dragon, who can't remember that he wiped out the gobblin army and saved the survivors single-handedly, before flying Bingo home.