MedeaFleecestealer: I think it's found in the Hidden Refuge area in Forgotten Gods, north of the Temple of Osyr.
It is, yes. I had trouble finding it and here's why. I upgraded to 1.1.4.2 from 1.1.4.1 using the update patch. The ring and its container were no where to be found. I then downloaded the 1.1.4.2 Forgotten Gods DLC and installed that over the top of my current installation. And 'lo, the ring (and its container) were where they should be.
Lesson is ... GoG patch seems to update the base game only. Changes to the DLCs, as this situation was, require upgrading each of those to ensure the player is seeing the world as the developers intended.