You are playing campaign mode.
Setup: Any player gains control of Melanwar. The first player may search the encounter deck for a copy of Twilight Hall and add it to the staging area. If they do, the players look at 3 random undiscovered treasures and attach 1 of them to Twilight Hall as a guarded objective. When free of encounters, the players claim the treasure and attach it to any character.
To wander off the trail in either direction was to risk becoming lost forever, and it was a long way to the other side of the forest.
Resolution: At the edge of the forest, Melanwar pledged his friendship to the heroes, moved by their altruism and their willingness to trust a stranger. If the heroes choose to invite him to join their quest, add Melanwar to the campaign pool (any player may add him to their deck). Otherwise, mark in the campaign log that “Melanwar has given you guidance on traversing Wilderland” (you can more safely navigate the mountains).
The players discover each treasure they control.
Discard cards from the encounter deck until X cards from either the Spiders of Mirkwood or Dol Guldur Orcs encounter set have been discarded and add those cards to the campaign pool. X is equal to the number of players in the game.
“This is where we part ways,” said Haladan. “The river will carry you north to Lake-town and then to Dale, but my home lies back west.”
One of the heroes clasped hands with the Woodman and said, “Thank you for your help. You are a brave man, Haldan. I wish you safe travel on your return journey.”