You’ll start to head east and you’ll have to fight more enemies in waves. Spamming crowd control attacks like a Water area of effect spell (QQQQQ then Shift+Mouse2) will help out a lot in this section.
After you get past the waves of enemies you will arrive at the town of Dunderhaed. Here you’ll face the third boss monster Jotunn, the beast chieftan. During the battle Jotunn he will be supported by other Beast monsters and one of them called the Beast Alpha will drop the weapon Mace of the Earth. This is the only time in the game you will be able to pick that weapon up.
If you manage to defeat him and his henchmen before any of the houses burn up you will be rewarded with the M60 machine gun. It was made by Angus using a paperclip and a shotgun. Obviously a reference to Macgyver. The M60 is pretty amazing.
If you pick it up and kill a villager you will unlock the “First Blood” achievement which is a Rambo reference.
Hop on to the wagon and you’ll be off to Havindr. That’s the end of the third chapter!