Dropped off of "An Emaciated Zombie" (Gulf Of Gunthak). Karana Server Feb 28th. Did NOT see it in the zombie's hand either.
Have yet to find out what price it goes for in the bazaar 8).
As for the "Level to attain" - LoY mobs tend to be undercon so I would watch out - bring at least a small group at 35 - They hit pretty hard for a level 35 solo (in upwards of 100).
I got this off a random mob in the shipwreack area of Gunthak. Very Nice Weapon! I would rather buy this then the 3k I used on my own weapon. I would suggest this to any beastlord who wants 2hb.