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For winning the joust I get to be the rider of the awesome horse Stormgait, she is the best a horse could be and a very good girl.
I then explore Saarnguard keep, it is a very scary place and constantly tries to kill you and is filled with secrets and lies
I also get 8 ATs.
A clue I find tells me where to look next, the jagged hills where I go back to to beings that are at least honest about wanting to kill me.