Okay, so I've been hearing about the Loremaster from various friends. Frankly, I have no idea what the Loremaster is and I'd really like to know.
If you have been to the Dragonspyre Library before (in the Atheneum), you will find that one stairwell has been removed, and a person named Loremaster is standing outside a dungeon area.
When you talk with her, she says something like, "So, do you think you have what it takes to beat me?", and offers the possibility of gaining a new spell.
The sigil then lights up, and when you enter (can't port in), she is flanked with 3 firefly-like minions that are Ice, Life and Balance (don't quote me on it), while she is also Ice or Death. It can be a bit of fun if you are into the 2nd arc, but make sure you have friends helping, cause they might have a chance at criticals.