Grim Batol is far east of Wetlands, you can actually get there. It has some 6 gates at the Dragonmaw Gates—custodied by Red Dragonkin and a roaming Red Drake, Axtroz, for the Onyxia-key quest series. Dragonmaw Clan flags may still be seen decorating the area.
Grim Batol, is the location mentioned in Warcraft: Day of the Dragon novel. Rhonin, Vereesa the elven ranger, and Falstad the dwarf traveled to Grim Batol to destroy the Demon Soul. The origin of the Demon soul was 10,000 years ago. Deathwing had convinced the other 4 dragon aspects: Ysera, Alexstrasza, Nozdormu and Malygos, into giving part of their powers to a magical golden artifact. Deathwing convinced them that the Dragon Soul disc containing their very essences could be the ultimate weapon to exterminate the demons of the Burning Legion during the War of the Ancients. The dragons foolishly believed Deathwing and infused half their powers into the Dragon Soul artifact. Deathwing didn’t infuse his powers. It was a trick. The dragons, though, noticing the treachery of Deathwing, cursed the Dragon soul. Deathwing can not wield the power of the artifact. It was for this matter that Deathwing manipulated the Orcs sending a goblin servant to join the Horde. The Goblin led them to find the Demon Soul. With it, the Orcs were able to mind-control Alexstrasza the Queen Dragon. This happened during Warcraft 2 events, the Second War. Over 15 years before Warcraft 3 events.
The orcs destroyed the Alliance cities with the help of red dragons in hit-and-run strategic blows. Korialstrasz alias Krasus, the consort of Alexstrasza, had been living among Humans and High Elves for many years, disguised as a high elf posed as one of the six senior leaders of the Kirin-Tor in Dalaran. Krasus had the obsession of caring for the Humans and Elves, and he would spy on their affairs becoming part of them. Given that he is the consort of the Dragon Aspect of life, his sworn duty was to watch over the development and evolution of the lesser races, and to teach them. He sent Rhonin—a human mage to destroy the Demon Soul in Grim Batol and to rescue Alexstrasza.
This area was mentioned by Tigole in July 2004.
NOTE: The Dwarves had created Grim Batol as a copy of Iron Forge over 300 years ago. After the War of the Three Hammers, Grim Batol was abandoned. Although the Dark Iron Dwarves of Blackrock Mountain were defeated, the death of Emperor Thaurissan’s wife within Grim Batol made the place unhabitable with a psychic taint affecting the area. Most of the Wildhammer Dwarves made a new home at Hinterlands and built Aerie Peak. Some 300 Dwarves however, stayed in Wetlands hoping to one day return to Grim Batol. During the Second War, the Dragonmaw orcs took Grim Batol and most of Khaz’Modan. Over 300 Dwarves had to hide underground within digged tunnels and in caves hoping to someday retake their home from the green-skinned invaders. When Rhonin, Vereesa and Falstad with help of Krasus, attacked the Dragonmaw Caravan of wagons, the Demon Soul was thrown off Nekros the Orc Warlock’s hands freeing Queen Alexstrasza and the red dragons from mind-control. The Hill Dwarves took back Grim Batol killing many orcs in their path. Alexstrasza lives now in Grim Batol—according to Warcraft RPG: Shadow & Light and Warcraft RPG: Lands of Conflict. Rom, the leader of the Hill-Dwarves was secretly an agent of Krasus, therefore it is possible that this group of Dwarves now serve the Red dragonflight within the walls of Grim Batol.
The Warcraft RPG: Manual of Monsters comments that Dragonspawns aren’t genetically related to the dragons. Dragonspawns and dragonkin were formerly humanoids who willingly served the dragons for many years, and took on the aspects of their patrons. Although, I wouldn’t hold my breath on this, it might be possible that the red dragonspawns in Grim Batol are formerly some of the loyal Hill-Dwarves in new shape. That is speculation, of course—unofficial.
Warcraft RPG: Lands of Conflict reveals that Alexstrasza and her dragonflight are keeping anyone from getting near Grim Batol. They are protecting something deep within its walls, a secret power. Some say they are protecting a powerful artifact or creature. The book goes as far as to speculate that Deathwing has been held captive and imprisoned within Grim Batol. Another possibility is that the creature that now holds the essence of the Sunwell might be under protection of the Red Dragonflight—Read Warcraft Manga: The Sunwell Trilogy.
Spoilers: Day of the Dragon summary.
NOTE: Falstad, the dwarf from the book is an NPC in-game in Aerie Peak, on the stairway to the Gryphon master.