Lovely Charm

Source
To collect Lovely Charms, players must have the Lovely Charm Collector's Kit in their inventory, which is available from. Then go kill mobs and/or players that would grant honor or XP. You need not loot these mobs; the charms are created automatically in your inventory when the mob dies as long as you have the Lovely Charm Collector's Kit.

In a group or raid, these appear to be awarded randomly; you do not have to land the killing blow to get the charms. These items stack in lots of 40 and you can have more than one stack in your inventory at one time. Not all targets you kill will give you a charm, and you do not have a higher chance to gain Lovely Charms if the enemy is more level-appropriate. 10 Lovely Charms are used to make a Lovely Charm Bracelet.