This clip is taken from the transition between Act1 and Act2. Artos (the protagonist) has just escaped from slavery and is remembering the battle that killed his father.
One of the hallmarks of the Pendragon movie were intense sword fights. Extensive sound work was done to transform wooden weapons and plastic armor into heavy instruments of mortal combat. This clip comes from the climatic battle between Artos and his nemesis. Real swords were used by these trained swordsmen but when it came to sound, they too received the full treatment.
For more information on the sound of Pendragon, visit the “Pendragon Post-Production Process” blog entry.