Dread Hammer appears in Baldur's Gate: Siege of Dragonspear. The Lich Gurn Coldhearth in the Repository of Undeath has the item.
Description[]
“ | A Cold, Dread Hammer from a Cold, Dead Hand Once the property of dwarven cleric of Abbathor, Gurn Coldhearth, this mighty war hammer was infused with dark magics soon after Coldhearth's transformation into a lich. The brown leather of the handle and gray metal of the head are purest black now, seemingly forged of a darkness so deep no light can escape it. Any hand that holds it soon grows cold and numb, but those strong enough to endure the discomfort will wield a weapon of formidable power. |
” |