Excalibur

Excalibur is a sword that could be added in the 1.1 update. It seems to be white and gold in color, and may emit a particle effect. Its appearance resembles the Pwnhammer, so they are likely to be crafted from the same material/found in the same area/dropped by the same enemy.

History
Excalibur is the strongest sword, with the second being Night's Edge. To craft it, you need: 1-Cobalt Sword 1-Mythril Sword 1-Adamantite Sword 20-Souls of might