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When masking you want to select the channel with the highest contrast, in this instance we'll need to select the Red Channel. Right-click on this layer and create a duplicate, the original Red Channel will be selected by default but you need to select the copied layer.
Go to Image>Adjustments>Levels and try to create a much higher contrast by moving the sliders. If you want to go the easy route, just copy the settings shown below and click OK.
Select the Pen tool (P) again and create a Path around the knight. You might want to go around the beard on the inside as we're going to use a gentle technique to extract the beard. Once the Path is done, create a selection and fill it with black. The fastest way to do this is by using a very large Soft Round brush. On to the beard, use a smaller sized Soft Round brush and set the Brush Mode to Overlay. By setting it to Overlay, it will be much easier painting on or over areas you want to keep.
We will need to remove the background to get a clean mask, so go to Image>Adjustments>Levels again and move the sliders but keep your eye on the fine detail of the beard as you don't want to go overboard.
You will notice that there are still some major leftovers which need to be removed. Grab a large Soft Round brush, set your foreground color to white and set the Brush Mode to Overlay. With the Layer Mask selected, gently paint over the background of the image.
If you have done this properly, you should be left with a pure black and white image. Click on the RGB Channel and go back into the Layer Menu. Go to Select>Load Selection and a menu will pop up. Select the Red copy as the Channel, check the box to invert the selection and click OK. By inverting the selection, the white area will be removed from the selection.
Click on the Add Layer Mask icon in the bottom of the Layer Menu and voila! We have a clean mask.
Drag this image into our poster canvas and position it below the European Knight layer. Rotate, scale and flip the image horizontally as shown below.