Lore is basically a indentify scroll except that the item has a lore value. so if your lore is high enough and you find a magic item, right click it and if you see the indentify button on the bottom, then your lore isnt high enough
the higher the intelligence and wisdom increases your lore
also the class you are
Mage- 3 per level
Thief- 3 per level
Bard - 10 per level
all ohters get one per level
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What is my bidding my Master.
