In 110PC the High Elves of Mellvellon received the letter from Sigmarheim informing them of the negotiations with the Dominion. Outraged, the High Elves sent a force overland via Arnar and the moors of mourn into the vale of Canaur, determined once again to meddle in the affairs of other realms.
The battle of the Lesser Canaur took place in late 110PC on the river itself, to the north east of the Holy Sigmarite Empire. Empire scouts had spotted the approaching army, but Englebert was secretive enough not have allowed anyone but his closest allies find out about his conversations with Mellvellon. Heinrich was therefore initially puzzled by the High Elves' demand that he stop negotiating with the Dominion. Heinrich refused the High Elf decree and, insulted by the High Elf presumption, sent his army to the bridges of Canaur. After repeating their demand, the High Elves attacked.
The battle was exceptionally bloody as both sides fought for control of the river crossings. The battle ebbed and flowed and at one point an Empire victory lokoed likely, following the rout of the Dragon Princes and destruction of their right flank by fired up greatsword regiments. These elite troops were so enthusiastic to pursue their enemy that they almost lost Heinrich the battle, driving too far east initially and abandonning the very river crossing they had to protect.
Templar Grand Master Halsdorf fought his last battle, regaining control of his greatswords before facing the might of a star dragon on his right wing. For a time his cavalry held up the beast, and one of Halsdorf's battle wizards managed to weaken the rider, but the monster was too strong. Halsdorf died, trampled under foot by the Dragon Lord of Mellvellon. The hero of Sudhafen was dead.
The dragon then charged into the Empire elite infantry, and though the elf lord on top was killed the beast killed or scattered the remaining greatswords. The Elves had managed to gain a foothold on the crossings of Canaur, but their army had been destroyed. The remnant force abandonned the march on Sudhafen and returned, battered, to Mellvellon.
The battle had secured Heinrich's position and made things difficult for Englebert, but the Emperor knew in his heart why the High Elves had come, and began scheming for the Grand Theogenist's downfall. By the end of the year however, Heinrich was dead from a fever and his son, twelve year old Konrad, now took the throne.
Konrad was too young to rule alone, so his uncle, Jurgen, was appointed lord Protector. Many thought Jurgen mad, and indeed it was rumoured he intended to take the throne for himself once Konrad reached 18, but Jurgen too did not live long enough, dying in a riding accident in 114PC. Konrad, now 16, was crowned Emperor of the Sigmarites with the blessings, and no doubt advice, of Englebert.
The Empire had prospered under Heinrich and the protectorship of Jurgen. Heinrich's negotiations with the Dark Elves and the stalemate in Canaur ensured the continued expansion of the realm, an enterprise much helped by the exploitation of the riches found in the ruins of Hardor in Hoffenland. The period saw the establishment of Sudhafen as a large city, and the founding of Freidrichslingen and Ravensgart, the Empire's main port.