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In a dwemer boss chest on a the balcony of the tower on a new island, located east of Windhelm, not far from the Winter War. Complete the dungeon in order to access it.
Behind some ruins to the left of the road leading from Ivarstead to Helgen, just at the start of the pass. It is close to the Alchemist's Shack, and east of Haemar's Shame.
Requires Treasure Hunter for SSE.