MH3: Charm Guide

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Charms are obtained in a quest either by mining or often as a quest reward:

At the end of the quest, these charms will be appraised (much like Rustshards) into the following talismans according to rarity: At the same time, the charms will generate the following skills:
 * Pawn Talisman (Rare 1)
 * Bishop Talisman (Rare 2)
 * Knight Talisman (Rare 3)
 * Rook Talisman (Rare 4)
 * Queen Talisman (Rare 5)
 * King Talisman (Rare 6)
 * Dragon Talisman (Rare 7)

Source:

Talismans can be equipped as an additional (6th) armor piece. Although they do not increase in defense power, they can be used to supplement a decoration or skill tree.

Examples
Below are examples of what kinds of Talismans people have obtained and which quests they got it from: