Penguin Island

Description
Penguin Island is home to, unsurprisingly, penguins. These flightless birds may be small, but are highly territorial, attacking anyone foolish enough to invade their nesting place in search of a quick snack of penguin eggs. The island is situated in the far north of Serpent Isle, amongst the dangerous ice-flows of the frost-bound Northern Regions, and can only be reached by using more or less stable ice-rafts.

As mentioned, the Magebane can be found here, an item which the Avatar can choose to offer to Vasculio, the insane blood-drinking wizard, lately of Moonshade, or using it to defeat him.