Trapped by the giants, Balder hurls the Sword of Frey to Agnar who escapes via the window and heads toward Asgard to warn them of the impending Frost Giant invasion. The giant king Utgard-Loki orders Balder sent to the dungeon and heads to his tower to conjure up a magical cold spell to chill the land. Giant assassins head to the dungeon only to find Balder has burned through his chains and melted a hole in the wall. The brave warrior enters Utgard-Loki’s magical lair and wreaks havoc, rescuing Karnilla from her prison in a large bottle. The giant king hurls his petrifying dust but Balder unleashes the intense heat within him and ignites the dust and melts the icy room—and also causes the giants to shrink. Balder persuades Karnilla to forgo vengeance, leaving the villains to wallow in their shame, and they ride out. Coming upon the corpse of the traitorous demon Rattusk, Balder lies and says the demon sacrificed himself to save him.
Meanwhile, Agnar, guided by the eagle Whiteface, has returned to Nornkeep where he finds Hogun the Grim waiting for him. Hogun has come in search of Balder to tell him he has been chosen King of Asgard (THOR #365-366). They leave a note for Balder and hurry to deliver the warning to Asgard.
On the journey, Balder talks to Karnilla about being a more just and patient ruler and he offers his support as she plans to free her petrified subjects from the giants’ spell. As they search the castle for Agnar, Karnilla spies the note left by Hogun and debates destroying it, not wanting to lose her beloved to his duty. But she relents, having learned about the responsibilities of a wise ruler. She gives him the Sword of Frey (still in Agnar’s possession) and her signet ring as a memento. He kisses her goodbye and heads off to his destiny….