Zhilo is a formidable Axe Master, who is willing to challenge you in battle. Also, he knows the DragonSlayer, Galanoth. They appear to be rivals. The Chosen can battle him, and if he/she succeed, they get to use his powerful axe, temporarily. He's mentioned in Galanoth vs. Zhilo, that he wants you to become an Axe Master, so who knows? Some day, he may train you in the ways of the axe.