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abandoned vilage, desert passage aboid slow enimies and purple poison. Go in cave. Leave to the right of cave entrance

Make sure you acquired the 'Dust Covers' from the Inn, by talking to the wizard. Don't forget to equip them, otherwise you can't get to the dunes.

Then you need to head back to the northern settlement, across the bridge, into the valley, past the purple 'mirages', and you SHOULD be able to exit through the north into the dunes!