No you can't apparently. It used to be possible, in theory. But AHing that stuff is the only reasonable thing to do with it. I put like 700 up earlier and it sold instantly.
no way to upgrade, you still can get normal mode materials from NM loot so just sell the normal mats on the ah or if you want make normal mode rares and hope for good rolls. Those have been fetching me 30K-40K all day.
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Can you Upgrade Subtle Essence?