What eventually happens to grandmother? What happens to Saul?

Grandmother, Naomi, freezes to death. They make it to Minaki, weak and starving. They lie down together at the train station to rest, in the freezing cold and the snow, and Saul feels Naomi go cold in his arms. Naomi is dead. Eventually, people come and take him away from his dead grandmother, into a strange new world that is resedential school.