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Having cheated death in an avalanche, Don Diego (Reed Hadley), aka Zorro, manages to get the gold safely to Mexico City, where he is greeted by a grateful President Juarez Carleton Young). Back in San Mendolito, Manuel (John Merton), the commandant, publicly blames Zorro and not the Yaqui Indians for attacking the gold shipment. Although he knows full well that Manuel is lying, Don Felipe (Leander de Cordova) suggests a reward of 100 pesos for every captured legionnaire. A somewhat disingenuous Don Diego disagrees and instead raises the ante to 1000 pesos. Meanwhile, a couple of Don del Oro's henchmen, Valdez (Charles King) and Moreno (James Pierce), trail legionnaire Miguel Torres (Gordon Clark) to Zorro's hideout and later capture the young man. Facing a firing squad, Miguel is rescued in the nick of time by Zorro, who ingeniously uses a swarm of bees in his attack. By copying Zorro's trademark, a burning "Z," in the hills above the garrison, Don del Oro lures the legion into a trap. Zorro, however, manages to rescue all but one of his men; when he returns for the wounded Ramon (William Corson), the legion's hideout explodes.