My version of the pencil keychain :)
Make a hole with the needle in the end of the pencil,where the eraser is.
Make sure you make the whole through the metal too,because the eraser is too dainty.
Roll the needle in the hole until it becomes big enough to insert wire through it.
Insert a longer wire trhough the whole,you can just cut the heads after.
Twist the wire's heads through the heads of the chain,until you are sure they are fixed really well.
Add a keyring at the other side of the chain.That's about it :D