As I played a good character I gave the Giants the benefit of the doubt and they said that if I killed the dragon they would give me the belt.
Cannot remember if they mark the map, but you come out of the fire giant encampment and then make your way to the top of the map from the east side. Basically the area transition is the same height as the fire giant one, but to the right abit. There is no shortcut to it apart from going south and then east and then north. Hope that makes sense.
The dragon will then give you the option that if you kill the fire giants he will help you. Go back to the fire encampment and kill them all mwahahahaha...sorry did I say I played a good character