You've entered the Farwood, a forest far beyond the northern reaches of civilization. The Lance is hidden somewhere in here, but you are not alone. You've met with Greal, the Champion of Heorot, and discovered The Tomb of Morditas where the Lance lies.
Upon entering the foreboding chamber, a wall of ice appears separating you from Grael, and an enormous figure approaches you. It is a twisted mass of tree limbs and roots, at its center a suit of armor made of what appears to be ice. After defeating the warden, one object stands out to you in the chamber, an ornate spear impaling a frozen figure.
Upon taking the Lance, Grael agrees to give it to you once Rahyeh has been defeated. The two of you return to Heoborea to tell Yulia of your success.