Steve
Fearfully and wonderfully made
Destroy 10 Blue Medallions and you'll be entitled to a freebie handgun from the Merchant: the Punisher; destroy all 15 Blue Medallions and he'll reward you with an upgraded version of the Punisher, instead.
Farm
There are seven Blue Medallions to find in the farming area.
#01
This first one couldn't be any easier to find. It's located immediately to the right of the poster explaining the purpose behind the medallions, which is opposite where the typewriter shack resides.
#02
Not quite as obvious as the first one, but not especially difficult to find. Look upwards towards the second floor window of the cow shed.
#03
At the most northern part of the farm, hanging from a tree next to the lumber shed.
#04
A sneaky one, this. You'll need to make your way over to the rear entrance — yes, I know — of the two-storey barn. When standing just in front of the archway, aim upwards towards the highest point of the roof. That'll be where your next Blue Medallion is hiding.
#05
Swapping over to the front entrance of the very same barn, this time, create some distance between you and the barn and look upwards towards the single, large window. The Blue Medallion will be dangling from and clearly visible within the center of the window.
#06
This cheeky one is hanging from one of the blades of the barely-spinning wooden windmill, towards the most Eastern part of the farm. For the best possible vantage point for shooting this mobile medallion, make your way up to the wooden walkway which allows you entry into the fenced-off area.
#07
The last one isn't far off from the last one, thankfully. Drop down into the fenced-off area and approach the large wooden gate. Slightly above and to the left of the gate is a little sentry perch; dangling from this perch is your final Blue Medallion for the farm.
Cemetery
There are eight Blue Medallions to find in the cemetery and church area.
#01
This one is just a stone's throw away from the dinky little shack to the right of the cemetery entrance.
#02
You'll walk right by this one on your way to the church; it's hanging from a tree and very easy to spot.
#03
Head off further into the upper left corner of the cemetery for this one; much like the others, it'll be dangling from a tree branch.
#04
The next one can be found to the left of the church entrance — you guessed it — hanging from a tree.
#05
Make your way around to the back of the church, where the insignia puzzle is situated. Once there, look upwards to find the next medallion hanging from the roof.
#06
This is probably the easiest one to miss. After leaping over the first, frankly terrifying gap in the bridge leading away from the church, spin around to find your next medallion hiding underneath the beams.
#07
You will have probably noticed it before jumping over the first gap in the bridge, to be honest. Regardless, hanging from one of the support ropes of the bridge, right next to the shack, is your second to last medallion.
#08
Just one last sneaky one before we're done. Just after moving past the shack, the final medallion should be visible hanging underneath some of the beams of the bridge further ahead.
Collect your prize
Now, all that is required of you is to make your way off to the nearest Merchant and claim your freebie handgun: the Punisher. While it might have a pretty threatening moniker, it's only slightly better than your default handgun, statistics-wise, and will end up weaker than almost every handgun in the game due to its relatively poor room for upgradability. I'd recommend holding onto it for as long as it takes you to expend the magazine that came with it, then sell it for a handsome 10,000 PTAS.
Farm
There are seven Blue Medallions to find in the farming area.
#01
This first one couldn't be any easier to find. It's located immediately to the right of the poster explaining the purpose behind the medallions, which is opposite where the typewriter shack resides.
#02
Not quite as obvious as the first one, but not especially difficult to find. Look upwards towards the second floor window of the cow shed.
#03
At the most northern part of the farm, hanging from a tree next to the lumber shed.
#04
A sneaky one, this. You'll need to make your way over to the rear entrance — yes, I know — of the two-storey barn. When standing just in front of the archway, aim upwards towards the highest point of the roof. That'll be where your next Blue Medallion is hiding.
#05
Swapping over to the front entrance of the very same barn, this time, create some distance between you and the barn and look upwards towards the single, large window. The Blue Medallion will be dangling from and clearly visible within the center of the window.
#06
This cheeky one is hanging from one of the blades of the barely-spinning wooden windmill, towards the most Eastern part of the farm. For the best possible vantage point for shooting this mobile medallion, make your way up to the wooden walkway which allows you entry into the fenced-off area.
#07
The last one isn't far off from the last one, thankfully. Drop down into the fenced-off area and approach the large wooden gate. Slightly above and to the left of the gate is a little sentry perch; dangling from this perch is your final Blue Medallion for the farm.
Cemetery
There are eight Blue Medallions to find in the cemetery and church area.
#01
This one is just a stone's throw away from the dinky little shack to the right of the cemetery entrance.
#02
You'll walk right by this one on your way to the church; it's hanging from a tree and very easy to spot.
#03
Head off further into the upper left corner of the cemetery for this one; much like the others, it'll be dangling from a tree branch.
#04
The next one can be found to the left of the church entrance — you guessed it — hanging from a tree.
#05
Make your way around to the back of the church, where the insignia puzzle is situated. Once there, look upwards to find the next medallion hanging from the roof.
#06
This is probably the easiest one to miss. After leaping over the first, frankly terrifying gap in the bridge leading away from the church, spin around to find your next medallion hiding underneath the beams.
#07
You will have probably noticed it before jumping over the first gap in the bridge, to be honest. Regardless, hanging from one of the support ropes of the bridge, right next to the shack, is your second to last medallion.
#08
Just one last sneaky one before we're done. Just after moving past the shack, the final medallion should be visible hanging underneath some of the beams of the bridge further ahead.
Collect your prize
Now, all that is required of you is to make your way off to the nearest Merchant and claim your freebie handgun: the Punisher. While it might have a pretty threatening moniker, it's only slightly better than your default handgun, statistics-wise, and will end up weaker than almost every handgun in the game due to its relatively poor room for upgradability. I'd recommend holding onto it for as long as it takes you to expend the magazine that came with it, then sell it for a handsome 10,000 PTAS.