You can exchange life crystals to life rings in Thais.
North of Thais, east of the little lake there's a hole with beholders in it.

There's an NPC:

10:48 PLAYER: hi
10:48 Lugri: What do you want, PLAYER?
10:48 PLAYER: death to noodles
10:48 Lugri: So, I guess you bring me a magic crystal?
10:48 PLAYER: yes
10:48 Lugri: Fine. Now you get what you deserve, you fool! DIE IN AGONY!

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