Leave Kalari Refuge heading to the south. Go straight up the hill and you will find yourself in a forest full of wolves and flaming...squirrels. Use the Arcane Net to capture these ignited rodents. When using the net you will target the ground near one of the squirrels rather than the squirrel itself. The net has a short range so be close before trying to capture one. Also the wolves around the area have picked up a taste for the squirrels and will occasionally eat them, gaining a buff. Bring the ten vermin back to Kosmo Balli for your reward.