Shattered Warbeads are dropping off of goblin warriors in misty thicket near runnyeye which are you used in quests that are not classic. I believe this item was added way later on. These have the same exact graphic as Runnyeye Warbeads so it's slightly confusing. I was able to find only one source:
http://everquest.allakhazam.com/db/item.html?item=18531