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Recover Santa's Magic Sack from the Frozen Plains zone. You can get this item by completing the puzzle in the Frozen Plains zone. This is one of the artifacts you need for the Picking up the Pieces quest.

Christmas - SC
Previous Quest:
Picking up the Pieces

Stage 1: Find Santa's Magic Sack

Stage 2: Return to the Elf in the Crash Site

Rewards:  Candy Cane Sword, Red Stub x1, 320xp (!)

Questline: Christmas Event