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[Obsidian Gryphon]

I found a lot of gems dropping off the mobs but not a single one drops the cloth, velveteen. Where can I find the mobs that drop this? The map of Hinterland is almost opened completely.

[Checksmix]

don't think it's from there. I've only gotten it from Ever green and buying it.

[Ramdadof3]

Found velveteen in a couple of the circular huts...one near the mage's hideout and another near the rift west of there.  I think they're random drops.