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Background
While exploring
Hiberheim, you'll come to a trio of Immaculate camps (#1). If you charm the Immaculates in the camps, then they'll tell you that they're in
Hiberheim hunting imps to create a
Blood Stone, and you'll earn a small amount of xp (about 3500 total) for learning this information. If you're not charming in the camps, and you kill the Immaculates before they can tell you anything, then you'll trigger the quest when you reach the Elemental Forge (#2).
Walkthrough
Despite hearing that imps are being hunted and that a
Blood Stone is being formed, you won't be able to protect the former or confiscate the latter. All you'll be able to do is head for the Elemental Forge in
Hiberheim, where you'll encounter the Conduit. She'll talk to you for a bit, but then she'll pick up the
Blood Stone that the Immaculates created, and she'll leave -- but not before converting four Immaculates into Enlightened Initiates -- aka demons -- and commanding them to attack you.
The initiates are Level 11, and they're reasonably nasty. They'll cast spells and do decent melee damage, but there's a good chance that you'll be at least a level higher than them, which should make the battle straightforward. You'll earn 2475 xp for defeating each of the initiates, and then you'll earn 3300 xp at the end of the battle for completing the quest.
Note: One of the initiates will drop a spell called
Orders, which will give you a way into
Hiberheim Castle (#3).
1 - Immaculate Camps
2 - Elemental Forge
3 - Main Entrance into Hiberheim Castle