I looked at the cracked exe of Draugen and the stock one and saw that the cracked one ran without the encryption.
So I figured it must be something simple.
Then I tried running the game in a debugger with the original exe, but since I don't own it on steam, it opened steam up and asked me to buy it.
So I came to think about atom0s tool "steamless".
I downloaded that and ran the executable through it to remove the steamstub DRM.
Then I looked at the exe again and this time it was decrypted/un-DRM'd and looked fine for running in the debugger.
So then I just ran it in the debugger and this time it got to and past the PAKhandling function.
Now I knew it was properly working, so I ran it through my AES tool, which gave me the key.
Are very cool, I see you helping alot on Zenhax forums, awesome stuff.