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For the second part of the mission, head to to the Bastok Consolate in Northern San D'oria, and he will tell you to talk to Lord Halver in the Chateau. He will tell you only to head to Yughott Grotto deep inside Ghelsba Outpost. You will need to head to the burning circle to complete this mission, and it is recommended to have a solid party with you. To get to the burning circle, follow the walls to the right to the top portion of the Outpost and go into the tunnel behind an orc building, which will take you into Fort Ghelsba.
Head all the way to the top of Fort Ghelsba, and go into a tunnel behind another orc building to get to Yughott Grotto. You will see two exits other than the one you just entered: the southern one is to the hot springs on Horlois Peak, and the NE one is to the burning circle on Horlois Peak. Head to the burning circle and enter the battlefield, defeating the Dread Dragon and The Seeker. Head back to the consolate in San D'oria, and finally back to Bastok to complete the mission.
From FFXI.Allakazham.com