Mountain realm of the Dwarves captured by Smaug the Dragon. The Lonely Mountain was a tall, isolated mountain in the far northeast of Wilderland. It stood near the edge of Mirkwood, about 50 miles south of the Grey Mountains and about 125 miles west of the Iron Hills. The Lonely Mountain was the realm of the Kings under the Mountain. The first King was Thrain I, who came to the Lonely Mountain in 1999 after escaping from the Balrog of Khazad-dum. Thrain discovered the fabulous jewel called the Arkenstone at the roots of the mountain. The Dwarves of the Lonely Mountain created new works and began to prosper.