Strength can be increased with Garnet Amulets, which are crafted with Lvl 2 Artifice, Armour is made with Smithing, Smithing is learned from a Goblin Smith in the Forge, you can use an Anvil in the corner of her room to make weapons and armour. Potions are crafted with Alchemy. All of these things can be found as random drops from chests which reset daily and are generated in random locations on each map.
You can also get two Bombs which do massive damage as a quest reward in the Mines for bringing some pickaxes to the Goblin near the exit.