I have been able to spend a little more time on my battle system today, and I have made some great progress! The mob is now able to fight back (and the hordes of test subjects cheer), combat takes place in a turn based matter. I still only have one attack type, but different mobs will do differing amounts of damage. Mobs will also award XP and gold upon death. I also wanted to test having different mobs appear based on your current XP level, when you hit level 5 a stronger mob appears. The player now has the ability to use healing potions and the mob you are fighting has a 33% chance to drop one upon death.
A productive day :)