The Hermit's Hut is on an island in the middle of a small lake between Lerilin and Brigobaen. In the lake itself there are several Sea Serpents. The west side of the lake is the safest place to cross due to the fact that there are fewer Sea Serpents on that side and the channel is narrower. Inside the Hermit's Hut it is possible to talk to the Hermit. You can give the Hermit a Bracken Seed for a Magic Rune and 200 experience points.