- Free Jakarn
- Exit The Grave
- Reach upper level of mine
- Enter storage room
- Find Jakarn
- Talk to Moglurkgul
- Talk to Jakarn at the Inn
- Complete the quest
After Jakarn did confess to stealing the gem, free him and follow him to the exit. But they can't leave this way as Irien and the guards are out there. Follow Jakarn to the side exit and leave the Grave.
When outside, Jakarn asks for help with the goblins, as he has left something there. Head to the goblin mine and enter with Jakarn. Here he'll say that he will trust them to get the gem and he'll take care of the goblins. Enter the storage room on the upper level and look for the gem in a chest. After retrieving the gem, meet Jakarn at the beach as he suggested.
After exiting the mine, Jakarn is nowhere to be found. Instead, the headman's guards are looking for him, as well as an Orsimer named Moglurkgul. She wants to know what they were doing in the mine and if they had seen a scummy Breton up there. Choose what to say to her, either say he wasn't there or say the gem was found. If the first answer was chosen, head over to the Inn to find Jakarn.
Outside the Inn an Altmer woman is standing, looking very angry. Irien says that if the Vestige is looking for Jakarn he's inside the tavern with a Redguard girl. She says: Jakarn is a liar and I hate him, but if I didn't hate the Headman more I'd tell him where he is.