In Path of Exile, there are 3 different bandit leaders which you can either side with or kill in order to get different rewards. You will get this quest after you finish Through Sacred Ground and Intruders in Black quests, poe trade currency is an integral part of the game.
Kraityn: Located in Broken Bridge (entrance located in Old Fields -> Crossroads -> Broken Bridge)
- Reward for siding with him is a permanent increase of +8 to all elemental resists (excluding chaos resistance).
- Cruel and Merciless difficulty rewards are 8% attack speed and 1 maximum Frenzy charge, respectively.
- To get to Kraityn’s location you can just follow the road. He’s far east or northeast of the map.
Alira: Located in Alira’s Camp (entrance located in River Crossings -> Western Forest -> Alira’s Camp).
- Fairly easy to kill bandit, summons zombies and uses Corpse Explosion.
- Reward for siding with her is a permanent increase of 30 Mana.
- Cruel and Merciless difficulty rewards are 4% cast speed and 1 maximum Power charge, respectively.
- To get to her just follow the road until you get to a torch, which marks the start of a mud road that leads directly to her camp.
Oak: Located in Pools & Streams (entrance located in River Crossings -> Vaal Ruins LvL-1 -> Vaal Ruins LvL-2 -> Pools & Streams).
- Note that access to Vaal Ruins require completion of ‘The Weaver’s Needle’ and ‘Delving into Sin’ side quests.
- Reward for siding with him is a permanent increase of 40 Life
- Cruel difficulty reward is 18% physical damage, and 1 max Endurance charge on Merciless.
- Following the river in Pools and Streams will lead you to the waypoint and Oak’s camp.
And finally you can choose not to side with any of the bandit leaders and simply kill each of them. If you choose to do so, simply turn-in the 3 amulets pieces to Eramir in the Forest Encampment.
Reward for killing the three bandit leaders is a free skill point (on all difficulties). My recommendation is to take the free passive skill point if you’re in a dilemma as it’s usually the most valuable reward, at least on normal difficulty. At this time there’s no way to change bandit quest rewards later on, but GGG has mentioned it will be available in the future.
No matter if you’ve sided with one of the bandit leader or if you’ve killed them all, completion of this quest will provide you with the quest item Apex which you will use on the Dark Altar in Pyramid to summon the last boss Vaal Oversoul and open the gateway leading to Act 3.