Complete the Barbarian Test Quest.
Now travel to Okolnir, using the boat south of Svargrond (Buddel).
(WARNING: You might end up on the wrong island. If you do, keep traveling to Okolnir until you end up at the place depicted in the screenshot.)
Walk up the ramp, and you'll encounter one to three Frost Dragons.
Green dots are possible Frost Dragons, and purple dots are possible Frost Dragon Hatchlings.
Now follow the red arrow to the next hole.
Once again, green dots are possible Frost Dragons, and purple dots are possible Frost Dragon Hatchlings.
As soon you step down, you will notice a hole. You might encounter one Frost Dragon Hatchling and possibly a lured Frost Dragon.
Black dots are possible Frost Dragons and purple dots are possible Frost Dragon Hatchlings (this might not be accurate).
The blue dot is the quest box.
Now you have reached the hardest part.
When you go down the hole, you will encounter at least one Frost Dragon, probably with at least one Frost Dragon Hatchling and maybe another one to two Frost Dragons. As soon as you have killed them, walk west as shown in the picture and go down the hole.
Once down, walk west to find the rope-spot and a frost dragon. Kill it and go up.
Beware: this last room will have four to five Frost Dragons spawned in it, almost all of which will be able to target you as soon as you go up. Mage characters will need to use Mana Shield. Use of Energy Wall runes is highly recommended to prevent too many from dealing melee damage to you.