If you go down the elevator from the forest to the valley, run past the drakes to the left until you reach a giant sleeping dragon on the further end is a sword of astora (longsword + holy status) The dragon will probably kill you but that's the best way to get it early in the game.
If you wake the dragon up from range, he'll start to vomit a poisonous liquid onto the battlefield. You can wade in from the side after each regurgitation to take a few stabs at the dragon. Rinse and repeat, no deaths, grab the loot.
While Dawn of War doesn't reinvent the RTS wheel, it does cover it with spikes and roll it over entire armies of screaming victims. Bring down the hammer.