To win, you must capture the city of Steadwick. Seek out the Seer - completing the Seer's Quest will allow you to carry the reward to the next scenario.
Catherine: Early intelligence reports forces from Nighon and Eeofol have barricaded themselves inside Steadwick. All land access to the capitol has been blocked. Their reinforcements arrive via underground tunnels. Armies from the west will meet us on the field of battle. There is little else to say. We do not stop until Steadwick is liberated.
Early intelligence reports indicate that forces from Nighon and Eeofol have barricaded themselves inside the Steadwick Valley. With all land access blocked, they must be receiving supplies through underground tunnels.
Day 1
Intro 2
You will either need to find the passage they are using to enter the valley or find a way over the mountains. The good news is that we have the assistance of Bracada, and if we can reach them, AvLee as well. There is little else to say. We do not stop until Steadwick is liberated.
According to witnesses, Gen. Kendal was captured during the fighting, and many believe that he is being held in a prison to the northwest. We would be wise to attempt to free him, as he is a brilliant military leader.
Capture Town: 
Steadwick
Lose All Your Towns and Heroes
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Tower
Inferno
Castle
Dungeon
Dungeon
Rampart
Ladybird of Luck