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Do you have a lore in mind for the herald? That's pretty big to how this shakes out. The no-brainer is often shadow, however, I don't know this adds a *whole* lot against High Elves. Life might be nice to boost toughness on units and to regrow your losses. Elves are also not usually fans of dwellers.
I think either list is strong- the first will require you to soften large blocks before engaging, but this should be feasible with magic (remember your magic missiles from the horrors!) and 5 flamers at 1000 points.
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