SNOWFLAKE IN A BLIZZARD – Long ago, a group of miners built a settlement on the shores of a great lake to harness the powerful energies hidden under the surface. But as time passed, the settlement was forgotten, and now the creeping winter has locked it away in ice. Who would be brave enough to face the elements and rediscover the magic of this lost settlement? Clearly not them...
— In-game story
The Lost Settlement is an small abandoned settlement built upon the northwest side of the island, built upon a glacier near the shore. Upon entering, mine entrances can be seen and many bridges are seen connecting the cliffs and edges for material transport, as well as many abandoned and near-destroyed frostbitten homes used by the local illagers for storage, training, and normal life. Progressing deeper into the outside borders, dark stone bridges, pillars, and other structures can be seen with a magical green flame, green lamps, and torches, possibly being the magical energy being harvested within the mines. War machines can also be seen deactivated near the settlement's entrace, such as a battering ram, an archer tower, and a trebuchet. Beyond the settlement's wall are more homes and even a small market. At the end of the level is a large structure containing a relic atop a pillar resembling a redstone lamp which activates and summons a few waves of mobs while green energy and symbols are seen emitting from it, somewhat like a clock, and upon defeating the illusioner, the relic activates like a beacon, and the exit is seen.