Gothic/Baloro's Weapon

On the highest level of the Free Mine (exterior) you will find Baloro. Whatever he says, choose all options that suggest you believe his outlandish trade for a weapon that can kill anything. He'll ask for 5 Apples, 2 Rice Schnapps, 5 Beer, 3 Bread, 2 Cheese, and 2 Grapes.

5 Beer: You should be able to accumulate the Beer by merely stockpiling them as you find them. 5 Rice Schnapps: You should be able to accumulate the Rice Schnapps by merely stockpiling them as you find them. 3 Bread: Bread is best bought from merchants early in the game, but you will also find some in a locked chest in a run-down hut of the Old Camp (right side of the castle). 2 Apples: The easiest apples to find are the two apples next to the trees in front of Cavalorn's shack, but you will also find some in a locked chest in a run-down hut of the Old Camp (right side of the castle). 2 Grapes: Grapes must be bought from Wolf. You can find a single bundle in a chest in a hut surrounding the Free Mine. 2 Cheese: Cheese will be the hardest item to find. There is some Cheese in a chest in a hut surrounding the Free Mine, but you will also find some in a locked chest in a run-down hut of the Old Camp (right side of the castle). As a last resort, Cavalorn and Dexter always seem to sell one piece of Cheese each.

Once you have all these items, return to Baloro to get ... nothing for your efforts. Not even an invitation to the party. You've earned 300 experience, at least.