The whole room, which had largely gone back to their own business, (figuring you for a freshly organized company of moderately experienced adventures who were left without a company due to other members retirement or death's,) stop in shock and consternation. Damar's outburst shows plain as day that he, (and by extension the rest of you,) is a wet behind the ears grass green novice, and there are mutterings among the locals to the tune of "Well, that's it, the hostages are done for..."
However, you are in immense luck: a kindly looking woman in the robes of a cleric of Pharasma stands up and says: "Old age and treachery will best youth and enthusiasm every time, so you had best come upstairs with me and I'll show you to the Keep's office." Meanwhile she takes out a heavy Platinum Holy Symbol of the goddess of death and rebirth and touches the guards foot, the blood vanishes from the bandages and he stands gingerly then grabs the priestss's hand and shakes it vigorously, gabbeling his profuse thanks...