Is he from this Planet?

When I saw this, I imagined Dwarf Fortress in EGA. It made my day.

Looks great, I hope you can find enough variety at this small size (actions, expressions...).

Great, at first I thought it was a tribute to Dwarf Fortress :)

yeah, replace the middle black line in the chest, with a highlight colour.

Here's an edit:

http://i.imgur.com/5AK4Y.png

I'd suggest reworking the palette a bit too.

The dwarf is awesome!

The chest not so much: not very readable, sad grey, no shading.