Red to level 12, as posted beforehand. Green to level 32. Dropped a mermaid scale and mithril earring on the first go, spawned immediately the next round and dropped only coin.
She spawns off the north shore of the island, toward the east side, with the seahorses just north of Tolo. One of the seahorses is her placeholder. She seems to be a very rare spawn, but I did see her twice in a row.
Warning: She can travel over land. This is apparently a bug.
She moves slow and jerky. She occasionally stops (as a spellcaster might, though she is a warrior) which makes fleeing from her easy (for those camping seahorses).
Hits for approximately 42 max, and kicks.
Lowers Mermaid faction.

Mermaid Scale
Mithril Earring