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Dynamite: To obtain two sticks of Dynamite, one way is to head to a town and save it from the zombie hordes. Try Gaptooth Breach and Agave Viejo. When you've successfully rid each area of zombies, you'll receive a stick of Dynamite. You can also rarely get Dynamite from killing zombies.
Undead Bait: Collect one 1 Wild Feverfew and 1 Prairie Poppy to create one Undead Bait. Wild Feverfew can be found in the area surrounding Armadillo, Thieves' Landing and other areas across Cholla Springs and Hennigan's Stead. Prairie Poppy are located in Great Plains.