From Oakvale, head through to Memorial Garden. In here you'll find two men whispering. Go to the other side of the wall and approach the wall while crouching. KEEP THE LEFT ANALOG STICK PRESSED IN DURING THE ENTIRE CONVERSATION. This is important, or else you'll spook the men.

Afterwards, exit back to Oakvale and head down to the beach. Dig in the space between the two boats here to get Lady Grey's Necklace. Now recall back to Bowerstone North and give it to Lady Grey. -- cut-scene --

Time to embark on the last part of this quest. Head to the other end of Bowerstone North and enter Bowerstone Prison.

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