Band of Mending

Source

 * This item is only obtainable if at least one character in the party is working on the Tier 0.5 upgrades.
 * Once Balnazzar in Stratholme has been defeated, two Undead (Jarien and Sothos) are summoned into his room for the upgrade quest; once defeated, they leave behind a chest. This item is one of the possible drops inside.