Lost at Sea.Pinocchio is still being held by Sneeroff, who is now using the puppet in a magic act where he pretends to bring him to life. After the audience fails to pay for a show a wealthy gentleman who was once a street performer gives Sneeroff a large bag of gold and invites him to dinner, where he tells him that he made his fortune by finding diamonds in Africa and where they could still be found, which gives Sneeroff the idea to go hunting for them despite the dangers to his performers. Meanwhile Pinocchio, Jack, and Willie are all staying outside in the wagon and guarded by Doro, when Pinocchio talks about how much he misses his father the two animals let slip that he's been searching for him, which lifts the Puppet's spirits and the three decide to escape. However when they try to get past Doro the resulting chase damages the gentleman's carriage and alerts Sneeroff who gathers everyone and leaves before the gentleman finds out, passing by Geppetto on their way. The next day Geppetto walks by the gentleman's house and offers to repair the carriage, until he hears who caused the damage and runs to find Pinocchio; unfortunately he isn't able to run fast enough to reach the docks and sends Charlie ahead who frees Pinocchio and the animals from the cage after hearing Sneeroff's plans to leave the others to die once they find the diamonds. However, the ship has already set sail, when Pinocchio decides to follow the Oak Fairy's advice not to lose hope she appears to tell him help is coming right before a storm starts and a giant walrus attacks the ship with the wreckage washing up on a nearby shore.