Iron Man breaks into the Mandarin's base and battles him, but a flame blast from the Mandarin's rings sets him alight. The Mandarin flees, but first causes his base to sink back below the waves. At Stark Industries, Pepper meets with Eddie and tells him that Iron Man has gone to help look for Marty. Happy arrives. Determined to save their marriage, he hands Pepper a note that he thinks holds the solution. In Vietnam, Roxanne walks through a village that is suddenly blasted apart by artillery, despite the cease-fire. A shadowy figure pulls her into a cave to save her and she is surprised to see her rescuer is Marty March himself. Iron Man heads underwater to rescue Sunfire. However, upon his return to the surface the Mandarin ambushes him with a karate blow that knocks him unconscious in mid-flight, causing him to propel straight up and toward outer space. In China, the Yellow Claw explores the Mandarin's fortress arsenal, but a nearby mountain begins to erupt; the Mandarin has returned to reclaim his home and has reawakened Ultimo.