The Treasure Hunting Toad is a Toad from the game Super Mario RPG: The Legend of the Seven Stars that can be found in the Moleville Mines and later in the Moleville Item Shop. After defeating Punchinello for the third Star Piece he can be found in the Moleville Item Shop where he will sell his treasure findings to Mario.
It is possable that this toad is a native of Rose Town dure to his striped mushroom cap and the fact that Moleville is the nearest town, just west of Rose Town.
Treasure Findings
Item #1: The Lucky Jewel, ensures that Mario and his party get a LUCKY! Flower during battle; however, it can only be used a few times before vanishing completely from the player's inventory.
Item #2: The Mystery Egg if used ten times in battle by Toadstool while eqipped with the B'Tub Ring, it will turn into Lamb's Lure.
Item #3: the Frying Pan is a weapon that can be used by Princess Toadstool in battle.