Travel to the top of the Volcano at location (22434,28645). This is simple if you can fly - for Hatchling Dragons, it requires a five-minute run and a lot of jumping. The easiest way is to head North from Dralk and follow the road around to the right (check your map). You will then need to find a location you can jump up the walls of the volcano. You do not need to do anything to collect the ash. Simply stand in the lava and watch for a message to appear in main chat.
Return to Umbelroth.
Bathe in the currents
This location can be found at (22631,30193). Hatchling Dragons can run North of Dralk to (22672,29847) and follow the ravine to the ocean. Simply just stand in the ocean at this location and watch for a message to appear in main chat.