You found this shield in a chest near the slab of stone you died on. Take it, and make that dragon pay for what she did!
Oddly, this one is the least used of the four items stashed away in this chest. You guess whoever it belonged to didn't use it all that much.
Part 4/4 of the Dragon Slayer's set.
Note: Craft this shield with the banner in the chest, since I can't directly make patterned shields with MCS.