Novastar Resources Ltd.
OTC Bulletin Board : NVAS

Novastar Resources Ltd.

October 18, 2005 09:20 ET

Novastar Resources Announces Strategic Equity Investment into Thorium Power, Inc.

NEW YORK, NEW YORK--(CCNMatthews - Oct. 18, 2005) - Novastar Resources Ltd. (OTCBB:NVAS) has announced that the Company has taken a strategic equity stake in Thorium Power, Inc. (www.thoriumpower.com), a privately-held Washington, DC area-based company that develops and deploys thorium based nuclear fuel designs to stop the production of weapons suitable plutonium and eliminate existing plutonium stockpiles. At this point, Novastar Resources has invested $150,000 USD into Thorium Power, Inc. with the intent of increasing its strategic equity stake at a future point. This equity investment further solidifies the strategic relationship already established between the two companies, both of which are focused on creating global demand for Thorium based nuclear fuels.

Seth Grae, President of Thorium Power, Inc. commented "I am very impressed with the progress that Novastar Resources has demonstrated in implementing its business plan. Strengthening the working relationship between the two companies should be mutually beneficial moving forward, as we work towards our common goals."

"Novastar Resources realizes that Thorium Power, Inc. is the most established and recognized company in the industry. The Company expects to increase its equity stake in Thorium Power, Inc. and further explore ways in which each company can contribute to shareholder value for both businesses," expressed Paul Carter, CEO Novastar Resources Ltd.

Thorium Power, Inc. was founded in 1992 by Dr. Alvin Radkowsky, the first chief scientist of the U.S. Naval Reactors program under Admiral H.G. Rickover from 1950-1972 and designer of the first commercial nuclear power plant in Shippingport, Pennsylvania. The Company was formed to develop and deploy nuclear fuel designs developed by Dr. Radkowsky to stop the production of weapons suitable plutonium and eliminate existing plutonium stockpiles. Thorium Power, Inc. has been collaborating with nuclear scientists and engineers at Russia's prestigious Kurchatov Institute since 1994. The U.S. House of Representatives has authorized $5 million for the Thorium fuel project for plutonium disposition, for Fiscal Year 2006.

Novastar Resources Ltd. intends to provide Thorium compounds to power nuclear reactors, while Thorium Power, Inc. will push demand for Thorium use in reactors by developing fuels that utilize Thorium in the generation of electricity and effective disposition of both reactor grade and weapons grade plutonium.

About Novastar Resources

Novastar Resources, Ltd. is a publicly traded company within the commercial mining sector and is a significant commercial mining source of Thorium. The company's stock is traded and quoted on the OTC Bulletin Board under the symbol NVAS. Further information is available on the company's website at www.novastarresources.com.

Safe Harbor Statement This press release may include certain statements that are not descriptions of historical facts, but are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. These forward looking statements may include the description of our plans and objectives for future operations, assumptions underlying such plans and objectives and other forward looking terminology such as "may," "expects," "believes," "anticipates," "intends," "expects," "projects," or similar terms, variations of such terms or the negative of such terms. Such information is based upon various assumptions made by, and expectations of, our management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to significant economic and competitive uncertainties and contingencies beyond our control and upon assumptions with respect to the future business decisions which are subject to change. Accordingly, there can be no assurance that actual results will meet expectations and actual results may vary (perhaps materially) from certain of the results anticipated herein.

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