Fate Points can be expended to raise characteristics. The existing rules for training apply, except that a Fate Point may be permanently sacrificed, worth 200 GCs of training expenses. (This is, incidentally, a fairly raw deal.)
Experience Points may be spent in lieu of Gold Crowns on Training. For monsters that really have no business carrying treasure, the GM may award "Experience Points" instead of GCs. There is no limit of how many Experience Points a Hero can "carry", and they can't be lost or stolen, but they can be spent in the same way as gold on any sort of training. (This represents "field experience" rather than actual training.) They cannot, however, be given away, or used for any other purpose.
Characteristics can still be improved by training. The old method of spending gold
crowns to raise characteristics is still allowable. Regardless of the method, no more than
one characteristic may be improved by one point between adventures.
Fate Points may be given to henchmen. Some of a Hero's good luck may rub off on his faithful henchmen. A Hero's Fate Points may be permanently given to any of his henchmen, and may also be used to raise characteristics accordingly.
Wizards have Magic Points instead of Components. Wizards no longer purchase
magic components to cast spells. Instead, they have a set number of Magic Points to expend
to cast spells. At the start of the game, upon each return to a settlement, or each time the
group camps for the night during an adventure, these points are replenished to maximum. Each
casting consumes a Magic Point -- Spells that require two components require two points.
Magic Points are equal to starting Components. The number of Magic Points a Wizard (or other magic user) gets to use are equal to the number of Components he would have been allowed to start the game with.
Magic Points can be increased with Fate Points. A Wizard or other magic user may increase his total number of Magic Points by permanently sacrificing a Fate Point. This total number of Magic Points may only be increased once between adventures. A magic user's total Magic Points gained in this way may not exceed his Intelligence score.
Magic Points are increased with new Spells. If a Wizard learns a new spell, he also
adds another Magic Point to his total.