West of the eastern griffin tower (the one that is acessed northeast of the crossroads), you will find two Nomad camps. In the westernmost camp you will find an NPC named Owen Nerova, hail him and get his quest. He will ask you to search for his wife, Ariana, who has been taken hostage by orcs.

You will find Ariana in the Wailing Caves, a dungeon zone that is north of the eastern nomad camp. She is being kept in the jail area, which can be acessed by following the main part of the dungeon to the Pit of Death. Walk down a bit until you reach the first passageway to your right, there will be spikes protruding from the floor. Once there, keep right until you reach the jail area. As A scout I was able to do this part solo with apprentice 3 sneak at level 12, it is not possible with lower skill. Without sneak, I would reccomend a full group of level 12 characters be needed to reach the area safely.

Once you have spoken to Ariana, she will give you a necklace, return this item to Owen and recieve the reward of a very nice stiletto.