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“This scabbard is a rare treasure. Its inscription reads, "Talic the Defender," in archaic lettering. He was one of the ancients who guarded Mount Arreat until the shattering of the Worldstone, a true warrior who gave his life to spare the world from the dark fate it has fallen to now.
Location
Scabbard of Talic the Defender drops at the end of the quest The Scavenged Scabbard in Watch Tower Level 2. Both the Watch Tower and the quest event are rare spawns, so it may take a few replays to get it.
Additional Information
Start on the quest The Imprisoned Angel and use the waypoint to Northern Highlands. Head down to the Southern Highlands and go WEST ( 1.0.5 changed ). If you go to Level 2 and Vendel is not present, leave the game and come back to keep from wasting time. He is right at the entrance of Level 2 when you enter.
Note: The chances of these two spawning are quite different. The Tower itself spawns about 50% of the time and always in the same place. Vendel, however, is more like 2-5% . It's not unlikely to try this 20+ times before you get it (some have reported having tried 100+ attempts).