- The Russo-American company seems to have pre-fixed winner at auction. The Bear Clan visits Diego after he attempts to stop Andreyévich from making into auction. Lolita is confused with her feelings for Diego and engagement to Monasterio.
- US railroad tycoon Vanderveen's hit-man Samael arrives in Panama, having tested the 'secrret weapon', a revolver, to pick up a woman. The governor practically promises the mine will go in an auction to the Russian company, despite interest from several rancheros, even has the newspaper ransacked to prevent them publishing the announcement, but Diego plans his own bid, deputizing Bernardo, and makes sure the Russian Andreyevich arrives too late, due to a port riot of destitute locals. Although maid Mei doesn't even respect his bathing privacy, Diego secures her freedom in a deal with Tchang. Lolita flirtatiously has fiance Monasterio show her the garrison, which is attacked by fake Zorro's braves, nursing his arrow wound. As warned by the newspaper editor, the masked "bear clan" comes abduct Diego, offering to recruit him for the cause of Californian independence from Mexico in Alejandro's place after a grim trust test. Diego and Lolita stop fake Zorro killing Monasterio, she's unmasked, Lolita now promises to wed the officer as vowed.—KGF Vissers
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