While the Kaalroen Empire was facing enemies on every front, and losing to them, the Dark Elves continued to expand their navy, roving along the coasts taking slaves wherever they could. The city of Lamentation swelled with slaves of many races, though human tribesmen, mostly descendents of the once proud lords of Aranur, made up the bulk of the cargo.
During the period 125-150PC it was the lords of Lamentation who were most active, while the aristocracy of New Naggaroth indulged in the pleasures of intrigue and plot. The Dark Elves of the Dominion meanwhile aggressively expanded the empire, finding new lands to the south and west of the Pan Coron Ocean.
The Dark Elves of New Har Ganeth had by this time already established a colony on a windswept northern confident, though they found no inhabitants to enslave. They had travelled east too, but were halted in their progress by the power of Mellvellon, at great cost to the High Elves.
The navy of Lamentation established a new colony to the south, but once again the land was apparently uninhabited. Refusing to admit the voyage had been a failure, a new city was raised up, testimony to the power and span of the Dominion.
Experiments in dark sorcery continued apace, with the daemonic portal on Basslaer Isle harnessed by sorcery. The results by the middle of the 2nd century had been promising. No daemonic incursion had occurred and the Dark Elves were able to harness the power of the daemonic realm to further their own plans. The results of the experiments certainly gave the Dark Elves the resources to cross the Pan Coron ocean and establish their colonies in such a short span of time.
The meddling with dangerous dark energies on Basslaer attracted the attention of the Lizardmen of Cullinor in 143PC, and a mercenary Ogre army was sent to deal with the threat. By now Dark Elf raiding parties were achieving success in Prestaur, and the human tribes there looked soon to be swayed into the Dark Elf orbit, through fear and intimidation. The lizardmen, fearing for thier own heartlands, and appalled by events on Basslaer, had to stop them.
The Ogre army was intercepted before it reached Basslaer, as althought the lizardmen were powerful, their fleet was almost non-existant, allowing the Dark Elves to land at the pass between Prestaur and Cullinor, before the Ogres reached the Dark Elf raiding lands.
The battle however did not go well for the Dominion. Despite the power of their sorceress their army was defeated by the stubborn Ogre army, and the Dark Elf host was obliged to withdraw. This also meant the raiding of Prestaur had to cease, but the Dominion still retained dominance of the seas and their power grew steadily towards the middle of the 2nd century, by which time they had overtaken the Kaalroen Empire as the most vital nation of Palurin.