Diablo/Arkaine's Valor Armour

At level 5, in the catacombs, you may find the Book of Blood. It is located in a room that you can enter from the southwest, through two side-by-side doors. You'll also find some big horned demons in this room. Despite their appearance, they aren't overly dangerous or powerful, just be careful to avoid their running charge. Read the book and proceed notheast. And you will find a Blood Stone, next to a Pedestal of Blood. Grab the stone and put it on the pedestal. This will open a new room in the northwest. Reach that room. Here you will find some horned demons similar to the ones you just faced and another Blood Stone. Grab it and put it on the pedestal. Another room will open, mirroring the one you've just been in. Reach it, kill the demons and collect the third Blood Stone. Put this one on the pedestal too and a wall will open in front of you. Here you will find more demons to defeat and on the floor you will find the Arkaine's Valor, probably the best armor you can find in the first half of the game.

Before finishing the quest, if you go back to town and speak with the townsfolk, they will tell you that Arkaine was a noble warrior from Leoric's navy.

REWARD: Arkaine’s Valor
 * Armor Class: 25
 * +10 to Vitality
 * -3 Damage from Enemies
 * Fastest Hit Recovery
 * No required attributes
 * Durability: 40