On the back of the broken mirror Tony and Virginia find an inscription "Manufactured by the Dwarves of Dragon Mountain" so they decide to go to there hoping to find another mirror that could bring them back home. In the mountain, they meet dwarves who inform them that three Traveling Mirrors were made. The only one left is in possession of the Evil Queen. Tony's bad luck causes him to break all the magic mirrors. The dwarves become angry and chase them so Virginia and Tony run to deeper into the mountain to escape.