Get to the end. There's some people in houses. also laying around is a dawn stone, in which iron island is one of the few places to get the rare stone. I think that's also where you get riolu... Ask around. I think it hatches from an egg.
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Go to the end of the cave and go down the elevator.
Iron Island
riolu
you can find riley in iron island in the cave. when you go to the end of the cave go down the elevator and talk to riley by the elevator and he'll give you an egg to take care of.
you have to go to iron island and partner up with riley and beat a couple of galactic grunts somewhere in that cave. be sure to have an empty slot in your party.