Talk to Cor Angar to learn that Y'Berion has not yet woken up and, since the cemetery idea failed, he is their only hope for salvation. He'll ask you collect a variety of medicinal herbs in the swamp (eight leaves, four green and four orange) to be used to help awaken Y'Berion. The herbs you need to collect are in the back of the swamp, where the swampsharks are prowling. Search around long enough and you should find them all - even if you have "Healing Herbs" that look like eight leaves, four green and four orange, in your inventory already, these five items will become a unique stack. The bloodflies should be no trouble for you at this stage of the game but beware of the swampsharks.
Once you have all five herbs, return to Cor Angar.