He's surprised to see her, but happily so. He lost track of most of the people he wanted to keep track of so far and even though she seems upset he's glad to see her.

"Cry pardon for scaring thee. You know I mean you no harm."

He immediately puts his hands up, although he isn't going to put his knife down right now. That's just too big of a risk. But if she really wanted to attack him, now is the time.