"For a limited time tokens can be turned in for a gift at the representative in Bree-town (near the boar fountain) and Rivendell (near Elrond's House)."
This items drops from creatures in game of levels 11-21 at random.
This is an item drop for the 1 year Anniversary of LotRO
For more info check:
Happy Anniversary from LOTRO!
You can win this item from the Lottery: Iron Token Lottery and/or Anniversary Iron Token Lottery and/or Welcome Wagon Lottery of which you can enter at http://my.lotro.com/home/lottery.