By answering random geography and history questions, more and more of a flag and two outlines will be revealed. After you figure out what 3 countries are being depicted, take the first two letters of each country to make a new geographic feature.
Agree with fire needing added as a type-in, I would also just add great fire. Also Madeira is further South than Faro, so it either needs changed or clarified to be mainland Portugal (maybe you're saying it's a region instead of a district, but then I still think there's no harm in adding mainland to the clue)
I've also specified "mainland" on the Portugal clue, as that's what i meant. Sorry for the confusion!