There are a multitude of spoilers in this revised version of the lore for Smithworks.
Also, the full lore has not been completed as of date due to the games' in-completion.
All contributors to this 'guide' are greatly appreciated in helping me to find the lore books.

This lore book is found in the first level of the game.

Despite what must be common belief, this little known game in fact has a very deep lore rooted within it. At the beginning of our story, we are but a mere blacksmith, 'Smitta'. Throughout the story, there are multiple locations in which you will work, as you get promoted through the social hierarchy. With aspirations of working in the city, you are placed in a small shop along the outskirts of the city by the Smithworks Guild, not many customers come by, yet you know that it is only a matter of time until this shop is known around all of Torrell.

Upon your 17th day of working, you begin to feel quite bored working in the village, you begin to wish for a friend just to converse with. Between your first and 17th day of work, you find a small stuffed animal whilst you are cleaning, you name this toy 'Ducky'. This is the first signs of the intimate relationship you form with Ducky. Ducky helps you feel not so lonely throughout the day, and encourages you to work harder in days to come. Due to recent customers coming for new orders, you begin to hope that word will get to the city and the Smithworks guild will recognise your work and promote you to the city.

You begin to be recognised even more by regulars to the shop, you feel as though you are finally making a name for yourself. Despite this, you still feel as though you deserve to be promoted to the big city and not be stuck in this little village shop. You talk to Ducky a lot about this, you believe that he really believes that you deserve a promotion and will get one soon. You feel a kind of dread occasionally, you put this down to that stuffed rabbit that was left at the shop a few days back. You convince yourself that this dread has nothing to do with this rabbit, and it must just be a coincidence. You feel as though the rabbit is always staring at you, yet of course it is, it is only a stuffed animal. You must just be tired.

Finally, the Smithworks guild notice your hard work and talent, they transfer you to the city of Torrell. With a sudden sense of haste, you pack up all your equipment and begin your journey to the city, of course, not leaving your friend Ducky behind. On the journey you tell Ducky all about this promotion. You feel glad to be moving away from that cursed rabbit, yet feel some regret about leaving behind the village shop, you were just beginning to feel comfy.