Regardless of which way you play this cavern, make sure you grab the Mysterium Xerxes from the altar next to the ceremonial knife and fight your way out of the dungeon. You'll have to go through many more Mythic Dawn Agents, Acolytes, and Guards, but at least you won't have to sacrifice all of your equipment (which you can pick up by killing the guy you gave it to). You can also just walk into the shrine and start fighting. You will be able to talk to him a little while later after the main mission is done at the temple of one around the circle walk inside the temple. If you release the Argonian, His name I can't recall. We suggest releasing him and playing the good guy.
Whether you do or not, alarms go off and you'll have to fight your way out.
The Mythic Dawn members ask you to prove your loyalty and kill the Argonian they want to sacrifice. The Mysterium Xarxes, which is still in the shrine, becomes your target. When he finishes, he teleports into the realm of Paradise and takes the Amulet of Kings with him.