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You know there's a cave enterance in the lowlands (south east from Gentle child school), enter it and go through it till the next area, it'll apear that you see a bridge to the right and in the north part of the area you can found another exit. Choose the bridge one, and check the cave after cave in it, you'll find Tiny behind a Frog. That's what I can tell.

erm..how do i open the blue and red chest?

One of them is locked, you have to use the picklock.
The other is magically locked, so you have to use the magic picklock.