You just follow Jack and Annie.
Near by the prison
you use the amulet to go back to the tree house
Use the amulet that Jack and Anna give you.
To beat red dragon island, simply beat a red dragon. Don't forget to swallow.
in red dragon island
you find it on red dragon island
if you want this answer than you have to ask how do you beat red dragon island.
Red Dragon Island is out?!
There is no statue on Red Dragon Island. (see related question below)
When Jack and Annie get captured, go to the prison. Then, go to the wall with scratch marks on it and a parchment will drop down.
when you turn pink while you are a dragon on red dragon island it is because your health is going down.
you defeat the red dragon