Yep, I lost, I confirm.
Not just that I lost, but Valera won.
Here's what happened...
Seeing that there were two Inferno creatures hiding near the castle, I rejoiced. I was developing at a leisurely pace, especially since the tavern indicated an advantage in stats. But then Grindan came to me with an army three times larger than mine (Valera wasn't wasting any time) and wiped me off the map, taking my castle by storm.
Thanks for the game.