SPOILER
Are you talking about the Shaugain city? (I don't know how to spell their name
). I think she is near the center of the city. You know you are close when you walk near a large "statue" of a fish with sharp teeth - the lower jaw is the floor. There are about 4 other fighters hanging around her too. Not too hard of a fight...
BTW...who would you equip it to? I gave mine to Aerie. FWIW.
AC