under the bridge on the right side ledge when you can see part of the body, wings and tail. If you want to get the sword just shoot at the tail.I had 3/4 shots every round before he resets and fly back to the original position. If you want to kill him, make sure you have lots of arrows, i used up 400+ cheapest arrows with dex=12

Guys, want to ask about mini boss under the blacksmith guarding the way to the forest. Can you cut off its tail to drop a weapon?