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You have all 3 life points:

!openpockets

D-oh! Obtained item 9: Boots! -1 to players hit!

Boots.jpg

!onearrow

You quickly draw an arrow and shoot:
arrow
the bow made a strange sound as the arrow launches, as if the string nearly broke, but you clip the foe for a hit of 2 points!

Ok I am going to need help here. Did I kill the mage?

He has an attack power of 2 (You must score a hit of 2 or more to win this Stage).

But my boots give me -1, so did I hit with only 1 point? Also, do the Items form last rounds still apply?

Yes, you would have hit for one point and you need 2. So now you are on your second try. I would recommend getting the lucky dip item at the shop since it sticks with you for the whole tournament and it will be a +1 at the very least. Good luck!

You are correct on the roll -- so you lost a life point there and need to roll again.

Items that you acquire from using the !openpockets command only last for that stage. An item acquired with !ibtluckydip (after paying 0.01 STEEM or equivalent to @wizardzap) lasts for the remainder of the tournament.