Nulfastu Earthbound

He appears when entering the cave full of rabbits in the southeastern portion of Drakkar Lake.
 * Notes***

The rabbits are in the SE corner (where there is a blue incomplete circle is on the map - in between the portals to Varajar Fells and Norhart Domains). However, be cautious. As soon as you enter into the middle of this area, you will be ambushed by over 2 dozen shadows.