The Loremaster ability allows identification of items if you have an Identifying GlassDOS Items Tools Identifying Glass.

Each level of this ability allows identification of items with a higher item level and also reveals more information when inspecting an enemy target (hold the ctrl key and hover the mouse over an enemy target). Higher levels of Loremaster still reveal all previous levels' information.

Ability level Identifies NPC Information visible
1 Item Level 1 - 6 Current health and action points
2 Item Level 7 - 10 Maximum health
3 Item Level 11 - 14 Maximum action points and armour
4 Item Level 15 - 17 Chance to hit and damage
5 Item Level 18 and above Elemental resistances

Loremaster Skills & Gear Edit

You can find Amulets and Rings that offer skill in Loremaster.

Loremaster receives a +1 bonus from the Materialistic trait.

You can gain +4 Loremaster with nothing but gear and trait.

Spoiler: The trait is most easily gained by talking to the beggar east of Esmeralda's house during the Talking Statues quest and then choosing the materialistic option during the inter character dialogue that follows.