Talk to Sir Haldan and he will send you to Lady Annalie who also roams around Nork Island. She will tell you of how the Lizard King torments her and her family. Sir Haldan failed in his task to rid her of the fearsome beast. Lady Annalie challenges you to kill the flaming Lizard and retrieve a figurine of her father. If you are successful, you will recieve a +1 on your Constitution for your troubles.