Alaria attacks target 1.
Arita attacks M.
Lily attacks target 2.
Winter moves one square to the left. She'll be able to escape if necessary.
Added 51 minutes later
Okay, I've decided to retreat. I can't imagine how we can save Lily without a lot of luck or sacrificing Winter and myself (assuming they switch their focus to us). The chance of an instant kill, if the guys really have 35 dodge (and not lower/higher due to some unknown modifiers), is only 2%. Attacks dealing 50 damage won't make a difference. And the elf has only 1-2 rounds of barrier/health. If they switch their focus to us, Winter will probably be taken out almost immediately. I, with decent odds, won't last much longer either. At best, a couple of rounds. And if the guys don't die with M, they'll definitely finish us off after Lily. Arita won't be able to do much, considering she'll have to chip away at them like M, for three rounds. It's not worth the +2 to a random stat (and the theoretical power-up from the yellow artifact) for all this suffering.