Novastar Resources Ltd.
OTC Bulletin Board : NVAS

Novastar Resources Ltd.

October 03, 2005 14:29 ET

Novastar Resources Successfully Completes $500,000 Private Placement; Stage 1 Financing

NEW YORK, NEW YORK--(CCNMatthews - Oct. 3, 2005) - Novastar Resources Ltd. (OTCBB:NVAS) has announced the successful completion of a $500,000 private placement, previously announced on August 11, 2005 which represents the first stage of the Company's financing strategy. Proceeds shall be used for General and Administrative purposes to enhance the Company's short and long term opportunities. The private placement was oversubscribed due to strong investor interest in the Company's business plan and future prospects. Therefore the Company has received and accepted more than $500,000 in conjunction with this private placement, which included both accredited individual and institutional investors as participants. The Company now has sufficient liquidity to operate its business for the foreseeable future. Complete details of this financing shall be disclosed in a Form 8K filing, to be completed shortly.

The Company anticipates a second stage of financing aimed at an aggregate raise of $2,000,000 USD, which is planned in the next 60 days. Details of which shall be communicated with shareholders when practicable. This additional round of financing will enable Novastar to more aggressively acquire Thorium and Rare Earth Metals properties (and rights to) as well as assist the Company in future merger and acquisitions activity.

Paul Carter, President of Novastar Resources, commented,"management of Novastar is very pleased to have oversubscribed our first official financing initiative. The investment community understands the significant opportunities that exist for Novastar Resources and has shown great support for the Company. This financing enables the Company to continue its acquisitions of Thorium properties and rights to as well as pursue nearer term revenue opportunities."

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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