Karnog was happy, things weren't going his way for awhile. Now he is going to go on some "Big Quest" and save the day, yeah...right. But since the dunmer mentioned food and drink, then equipment...well, Karnog isn't one to look a gift horse in the mouth. 

Looking at the dunmer, Karnog said "Give me some Orichalcum, time, and a little ale and I will craft a weapon better than what you can give me."

Being an ork, Karnog was a natural at forging and its been months since he was able to do so. In all truth, if Malacath hadn't chosen him as his rage, Karnog would have been the strongholds forge master.