to answer your first question Sep, make the blue chest fallow you and make your way into the Light World by using your Magic Mirror (and make sure the treasure chest is with you because it can be left behind) and make your way towards the desert. Near the entrance to the desert you will find a man sitting near a sign post (also in this screen you will find a couple of crows and a knight to fight with). Talk to the man and he'll tell you that he is done being a thief blah blah blah and he'll open your treasure chest which contains an Empty Bottle.

For your second question, Im pretty sure there isn't a reward for not dying...Im sorry. oh BTW welcome to the boards, I hope I have aided you on your quest to find everything in ALttP.

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[Credit for my Siggy & Avy goes to my mentor, Lioness]

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