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In LF1 chapter 4 you must use it in two occasions, in the tower (west of Adretana) with the lamia, you MUST to have it to learn a defense/evade spell for Sarah and for Wendala (to complete the evade points the lamia ask for), before the cave of super bulls and later in the quest of the shop of rings, BUT the walkthrough of Mellowkat only mention it about this two events and do not mention where you can get it.
Somebody (maybe Kale) remember about?

Kale answered this a while ago. Hopefully it will help.
https://aldorlea.org/officialsite/phpBB3/viewtopic.php?f=42&t=4476&p=87748&hilit=vapor#p87748