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The Blacksmith can be located at the beginning of the Rhogar Realm, which you will access through the portal after defeating the Worshiper. Once you have entered this area, continue foreward over the bridge, and once you have ascended a few flights of stairs, you will see the Blacksmith on your left. The blacksmith will allow you to break the seal on the Runes in which you find in the game. This will then allow you to equip them to certain pieces of armour and weapons, adding statistics such as fire or magic resistance.

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