The Elven Elder has no drops, but increases your bounty significantly if attacked (10) or killed (30). This will cause all NPCs to be hostile towards the player for a significant amount of time. One of the few NPCs who casts strong magic. Has 200 Life and can be found being surrounded by mountains with a clearing in the middle.
If you have a bounty on your head, they (Elven Elder and Elven Merchant) will attack you with strong magic such as force flare and kill you as you go through the mountains towards them.