Captain Payne (Peter Williams) manages to get the Cyana to Aegiria before the compartment where Peter (Stewart Guidotti) and Janet (Ingrid Sylvester) fills totally up with water.  Once they are safe, they tell Bannerman (Gerald Flood) about the notes they received to lure them to the damaged compartment and about Dr. Deraad’s (Richard Coleman) unusual behavior.  When Janet describes the metal disk she saw in his room Bannerman is convinced that Deraad has the stolen Phenicium.

In Aegiria everyone is introduced to Marine Biologist Dr. Ellen Carey (Delena Kidd) and Professor Gordon (Robert James).  Gordon’s specialty is electronics.  He is currently building a Spectroscopic TV camera for use in rock analysis.  Peter is interested in Gordon’s work.  Gordon is flattered and invites Peter to see the camera.  Gordon gets called away leaving Peter alone with the camera.  Gordon returns and Peter leaves.  Gordon is once again called away.  Dr. Deraad takes the opportunity to sabotage the camera knowing that Gordon will blame Peter.

Bannerman believes Peter when he says he didn’t do it, but they have no proof.  Gordon insists that Aegiria is no place for children and demands that Captain Payne send them away.  Janet also believes Peter.  They both believe that Dr. Deraad is responsible.  Together they plan on searching Deraad’s lab for the Phenicium disk.  They know that with that they will prove that Deraad is responsible for the theft, and it will go a long way to proving that Peter is not responsible for any sabotage in either the submarine or the Spectroscopic camera. 

Peter and Janet search Deraad’s lab but can’t find the Phenicium.  Suddenly they realize they are not alone.