If you haven't heard of the mod Tinkers Construct - go play it now! It is an awesome mod that revolutionized some aspects of how tools work.
It did however abandon the use of experience so I made a mod that currently adds a small toolset of the second tier tools (hammer, excavator) as well as a sword that does added damage based on the players experience.
What are they made of?
The Magnanimous Gem is found in the core of the Magnanimous Tree
The Leaves of the tree drop Magnanimous Sticks that are used to craft the Hardened Handle for all of the tools.
The Gems are used to craft the head of the tools which are combined in the anvil to make the completed tool
Please refer to NEI for the head and handle recipes at the moment, and read all tooltips for in game help