This item drops from Arcanist Doan in the Scarlet Monastery in Tirisfal Glades. This is the first epic item which drops in the instance not as a World Drop. Before 2.3.0, the Blade of Eternal Darkness in Maraudon was the first.
The droprate for this item is quite low, around 3%.
Patches and Hotfixes
Patch 2.3.0 (13-Nov-2007): "New as of patch 2.3.0"
This item has the lowest level requirement of all Epics in the game.