Watching his ally fall, the last kobold remaining panics, and begins to flee along the road.

Spoiler: Game Actions
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K3's Turn:
Minor: Shift one space southwest.
Move: Move six spaces south.
Standard: Move two spaces southeast, two spaces east, then two more spaces southeast

Everyone will take their turns, then K3 will take their turn. If nobody attempts to stop his retreat, then the battle will end.