Shae and Kahan run south back up the tunnel.
Tahldar is casting...
A shimmering glow covers Tahldar just as the dragon reaches him. Unfortunately, the dragon is more intent on chasing down Kahan. But it stops just long enough to swipe a claw at Tahldar. The hit is powerful, slamming Tahldar across and into the wall, where he slumps to the ground on the platform where the old white haired man was found. But he is unhurt in the attack and rises back to his feet. (1 attack down.)
The distraction was just enough to allow Kahan and Shae to get farther down the corridor.
Vuzyl and Lukas usher the now shrunken old white haired crazy man and the remaining gnomes into the corridor to the east (to the left as Kahan and Shae are running south), and try to get them to a point of relative safety away from the dragon.
Borimer has put the berries in his waterskin filled with the Earthsilver healing water from the lake below.
Leo has remained hidden and the dragon moves right by without paying him any attention.
Borimer, Leo, and Tahldar remain in the large cavern with the water. Kahan and Shae have a good headstart on leading the dragon down the southern corridor. It is obviously seeking possession of the glowing golden cube held by Kahan:
Meanwhile, Vuzyl, Lukas, the crazy old man and the gnomes are off in the corridor to the east hiding.
Shae and Kahan reach the curve where the underwater tunnel leads to the beheaded smaller dragon and where the chest and cup were found. They can dive down there or continue south toward the way you initially came.
It is harder to move quickly here because of the water and mud, but so far the dragon is not within view behind you.