Before Zael leaves for the Underground Labyrinth, Horace gives him Key Item: Horace's Ring. This can be used in Seek Mode to find hidden entrances and pathways in the Labyrinth; particularly to hidden treasure.
Zael and Co head for the Labyrinth.
Head down the stairs to take out a group of Reptids. Afterward, search for the hidden door to get some treasure.
In the next area, the party jumps down to fight a large group of Reptids, defeat them and search the area for two hidden doors.
When Seek comes up, there is a target to the right of where the party came down from. The hidden passage behind a narrow wall opens up when Zael checks it. Sidle into the area and open the door.
The party enters the room filled with water, there are no enemies here, however Zael spots a door along a higher part of the wall where the party can't reach. Operate the switch to flood the room so the party can swim over there.
The party emerges in the actual labyrinth. Upon closer inspection to the area of where they came from, there is a large group of Reptids and cave cougars there. Attack them if you wish. There are two chests in the open area where the enemies were standing.
Move towards the closed gate. Upon entering area, numerous Reptids come out to attack the party. Lowell guesses that there are at least 100 of them.
Zael and the rest of the party have a little game among themselves to see how many they can kill.
Zael will count out loud the number of Reptids that he takes down during this battle.
The conversation at the end will differ depending on whether or not Zael can kill more Reptids that the others. If he reaches over 40 it's a good indicator that Zael won. Pick up any remaining loot that remains from the melee. Have Zael take the alternate path instead of the one the others wait in front to find a treasure chest. Head up the stairs and back to the area where the Reptid statue was.
A cut-scene occurs and the party notices that there is something really wrong with the water here.
Before going down the stairs, go down each of the three paths and use Horace's ring to find a hidden door at each end for treasure. Once all the treasure has been gathered, head down the secret stairs.
According to the party, the miasma down here is worse. Go into the room where the two large Reptid men were previously. Checking the door will indicate that it is locked. Use Horace's ring to search the walls. Inside is a chest with the keys to the treasure rooms. Zael can now unlock the cells in this area to receive some gold and other things.
So backtrack and open each of the cells. Inside Zael will find assorted swords, materials and gold.
One of the cells contains the key to the door. Once Zael has looted the room open the door to the Altar room and move on.
There is a Save Point right in front of the door.
Boss: Mad Kraken
A lot like the original Kraken, except pink and transparent instead of black.
The idea is the same, cut off the tentacles, then attack its head. The problem is that the tentacles can now cause the Betobeto (sticky) status effect. The Kraken itself can also cause Death Sentence and deal heavy damage if you get too close, by creating lightning around it. It can also create black magic circles that shoots a spike that will take out a character easily.
Mad Kraken's weakness is fire so have Yurick cast Meteor whenever he can, and make sure Lowell is using Berserker instead of shooting ice at it (thereby healing it).
Because this Kraken doesn't shoot a laser at the ceiling, the only way to damage it is to use Magic circles to hit it, and the dodge its counter attacks and spells.
After enough damage, Mad Kraken goes down and drops the Old Alloy (used for upgrading the Knight's Armor).