From StrategyWiki, the free strategy guide and walkthrough wiki

Necessary Locations:

• Ulkan Mines: Bottled Spirit

Rewards

• AF "Moon's Mirror"

Step one enter the Ulkan Mines and go right- then Upper right and you will be in Watts's shop. Talk to Pokiehl.

Event begins

Step two leave the shop and follow these directions:

• lower right
• down stairs-lower left
• across bridge-lower left
• down stairs-lower right
• at save statue-second entrance on upper left
• left
• left
• left
• down stairs-left

Here is Watts.

Step three

Walk to left screen and talk to Watts until there is a rumble. The Labanne boss fight will automaticlly begin. After the fight talk to Watts again and select one of the options given. Watts will leave and you will appear back in his shop to listen to Pokiehl's story.

Event ends