What are the rules for transmuting armour?
Yes, provided they are the same type (medium-to-medium, in your example). You have to use a ‘Fine’ transmutation stone if either the source or destination is level 80. Every other level combination should only require a ‘Basic’.
Will the looks only change? Or will my exotic lose the stats?
When using a transmutation stone a tab will open with two slots. You can drag an item to each of these slots, after which you get to select the combination.
From the two items in the slots you can select:
- The appearance
- The basic stats
- The rune/sigil/gem upgrade
So you can just change the looks of your exotic without losing the stats, by deciding selecting the appearance of the lower level item and the basic stats/upgrade from the exotic.
Picture to show how it works:
http://img109.imageshack.us/img109/6587/transmute.jpg
Note that the items used in the example don’t have an upgrade (rune), so this option won’t show in the tab.