A bonded version of the Faerie Light is obtained by reaching the highest level of Karma (Shunnyo/Angel) and performing Mentor one more time. This creates a popup allowing you to obtain your Faerie Light.
A non-bonded Faerie Light is rarely dropped by the Horse3 item boss, Horse defender.
Stats:
Durability - 5000000/5000000 Damage - S: 80m90 L: 80m100 AC : 0 Hit : 0 Dam : 0 Vita : 0 Mana : 800 Might : 0 Will : 10 Grace : 0 Protection : 0 Healing : 0 Peasant Level 70 Might to Wield : 0 Casts : None
Market Price - (NB) 4,000,000 to 6,000,000