Click a tool, then click a gnome. Blocker stops others. "Dig ↓" (digger) tunnels straight down. "Dig →" (miner) tunnels horizontally through rock in the direction the gnome is facing. Builder lays a staircase up. Parachute lets one gnome float down safely from any height.
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Level 2 — build and dig
First build a staircase to get up, then pick the digger and click a gnome: he tunnels horizontally through the rock towards the exit.