The Rat Caves are a place underneath Klamath. This is the source of the rodent scourge. Citizens have lived in the buildings above, and perhaps inside the caves, but were killed by the invading mole rats. The rodents are commanded by Keeng Ra'at.
A combat knife, and $109 in currency hidden in the pile of bones in Keeng Ra'at's chamber. The combat knife is lying on the ground amongst the bones, somewhat hard to spot. The currency is close to the corpse's feet in the pile of bones.
A xander root hidden near the pile of bones in Keeng Ra'at's chamber.