First I would like to say that if someone thinks this belongs in guides or some other place, I'm sorry.
The reason this is an exploit is because you are not supposed to be able to have level 35+ enchants on an item that a level 1 can use.
The item is: Enti's Quenched Sword
It drops off a mob in dragonblight, who also happens to be the objective of this quest: Wanted: Kreug Oathbreaker
Its a group quest, so you might need some help taking him down. If you don't want to do the quest, you might be able to buy it on the AH... although i don't know if anyone realizes its value yet.