Head north; south takes you down to a forest and we decided to avoid that. Reaver seemed fascinated in finding some ruins to the east, but I don't know if we're any closer to them than when we started.

[We need a light trail so badly...]

There are creatures out here, but I wouldn't call them "monsters." They are similar to the ones you started with; they will not attack humans and the ones you've been given should prove sufficient for your own protection.

[...Wait, you got a baby Balvereen? That's just cruel.]

You should be capable of capturing the creatures as well, should any of them interest you.