I found this through the MyExtraLife forums today and my goodness is it impressive.
In case you don't realize what you're looking at right away, this is a carving done on the tip of a (construction) pencil! The handle of the saw is carved from the pencil wood; the blade is from the graphite. The artist, Dalton Ghetti said,
At school I would carve a friend’s name into the wood of a pencil and then give it to them as a present. Later, when I got into sculpture, I would make these huge pieces from things like wood, but decided I wanted to challenge myself by trying to make things as small as possible. I experimented sculpting with different materials, such as chalk, but one day I had an eureka moment and decided to carve into the graphite of a pencil.This artist has done a number of other pieces; in fact, on the linked article (below), he has a 'graveyard' of sorts of pieces that broke just before he finished them. I can't find a website specifically for this artist, however, a quick Google returns several articles (all with the same images, text, as I've linked to); I'm sure this won't be the last we hear of him.
» Found at: Odd Stuff Magazine article