This Lord of the Rings figure is Mithril's 20th Anniversary Figure (released 2008). There were only 250 figures producted.
Gandalf the Grey is the most famous character in J.R.R. Tolkien's books, and is represented here when he confronted the Balrog (MB300) in the Mines of Moria to protect Frodo and his other companions from it's wrath.
The Balrog and Gandalf fought and fell down in the chasm and both were killed, however, due to Gandalf's supernatural nature he was resurrected as Gandalf the White (replacing Saruman as head of the Istari order of wizards). Gandalf uses both sword and staff in combat and after many hundreds of years of experience he is a master of combat.
It may be my third Gandalf miniature (I can't get enough of it), but this one probably has the pose that I prefer.