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This is the entrance to the Dragon's Eye Caves. You will fight many lizard men in these caverns, many of whom carry jars of flaming oil. You should pick up these jars as you travel through this area, you will need them to fight trolls as you move deeper into the caverns.
Two chests in this room contain fifteen Antidotes, some gold, gems, a scroll of Protection From Normal Missiles, an Oil of Speed, and some low-level missiles. The antidotes are important, as some of the creatures in the Dragon's Eye will try to poison your party.
3. Body of Erevain
The body of a man named Erevain's rests here, with a number of items on the ground next to it including a broadsword, long bow, fire arrows, arrows tipped with acid, a suit of chainmail, a medium shield and a journal. The journal will reveal that Erevain was the cousin of Xan, a cantankerous mage you may have travelled with in Baldur's Gate.
4. Lizard King's Lair
In this large area you will fight the Lizard King, flanked by his soldiers and shamans. Kill them all and search the bodies to collect elixirs of health, scrolls of acid resistance, and potions of fortitude. Search the statue of a snake in the centre of the room to collect two antidotes, a pair of boots which improve the wearer's rate of movement and scrolls of detect evil, fireball and monster summoning.
In this corner of the map you will find a number of people the Lizards have captured. Once you have wiped out the lizards you can free them for a large experience reward.
This exit leads to the second level of the caves.