Novastar Resources Appoints Seth Grae President, Chief Executive Officer, Names Three New Board Members.

WASHINGTON -- Novastar Resources Ltd. (OTCBB:NVAS) today announced that Mr. Seth Grae has assumed the positions of President, Chief Executive Officer (CEO), Interim Chief Financial Officer (Interim CFO) and Interim Treasurer pursuant to terms of the recently executed definitive merger agreement between Novastar Resources and Thorium Power, Inc. In this capacity Mr. Grae is responsible for appointing new management team members and running the day to day operations of Novastar Resources. Mr. Grae is presently President and Chief Executive Officer and a director of Thorium Power, Inc. Novastar Resources also announced the nomination of three new members to its Board of Directors: Mr. Grae, Ambassador Thomas Graham, Jr., and Mr. Cornelius J. Milmoe. They are expected to join the Novastar Resources Board of Directors within two weeks, following the appropriate notice period. Ambassador Graham is currently a director of Thorium Power, Inc. Novastar Resources also anticipates that at least two additional board members will be named in the near future.

As part of the merger agreement and management restructuring, Dr. Charles H. Merchant has resigned as Chief Operating Officer and Interim CEO, and will resign from the Board of Directors when the three new members join the Board. He will remain with Novastar Resources as head of mining operations. In addition, Mr. Paul G. Carter has resigned from the Board of Directors, and Mr. Carter and Mr. Sean Mulhearn have resigned from all management positions. Ambassador Graham has assumed the position of Interim Secretary of Novastar Resources, and Mr. Mulhearn will continue his relationship with Novastar Resources in other non-management capacities.

Seth Grae, newly appointed CEO of Novastar Resources, commented, "The changes in management reflect the direction in which the newly combined company is heading. The company is positioning itself to be a key player in the nuclear power industry, developing thorium-based fuels for current and future nuclear power plants. Securing a talented Board of Directors and management team will enable Novastar Resources to move forward along with Thorium Power, Inc. and complete the merger. Novastar Resources wishes Paul Carter well in his future endeavors and thanks him for his work on behalf of Novastar Resources and its shareholders. I am grateful to Charles Merchant for his work on behalf of Novastar Resources and look forward to working with him as he heads Novastar Resources' mining operations."

Novastar Resources Ltd. New Board of Directors

1) Mr. Seth Grae

Seth Grae has played an active role in all business activities of Thorium Power since the company's founding. He is a member of the board of directors of the Bulletin of the Atomic Scientists and has served as co-chair of the American Bar Association's Committee on Arms Control and Disarmament. As a member of the board of directors of the Lawyers Alliance for World Security, Mr. Grae helped advise on the drafting of nuclear export control regulations in China and Belarus, and he participated in consultations with the government of India on nuclear power and weapons. He represented refuseniks pro bono who were nuclear scientists, in securing exit visas from the Soviet Union. Mr. Grae led the efforts that resulted in Thorium Power becoming one of the first Western companies to contract with Russian nuclear institutes and become one of the first grant recipients from the United States Department of Energy for nuclear non-proliferation related work in Russia. Mr. Grae obtained his B.A. from Brandeis University cum laude, J.D. from American University, LL.M. in International Law with honors from Georgetown University, and MBA from Georgetown University.

2) Ambassador Thomas Graham, Jr.

Ambassador Thomas Graham, Jr. is one of the world's leading experts in nuclear non-proliferation. Amb. Graham has served as a senior U.S. diplomat involved in the negotiation of every major international arms control and non-proliferation agreement for the past 35 years. This includes the Strategic Arms Limitations Talks (SALT Treaties), the Strategic Arms Reduction Talks (START Treaties), the Anti-Ballistic Missile (ABM) Treaty, Intermediate Nuclear Forces (INF) Treaty, Nuclear Non-Proliferation Treaty (NPT), Conventional Armed Forces in Europe (CFE) Treaty and Comprehensive Test Ban Treaty (CTBT). In 1993, Amb. Graham served as the Acting Director of the U.S. Arms Control and Disarmament Agency (ACDA), and for seven months in 1994 served as the Acting Deputy Director. From 1994 through 1997, he served as the Special Representative of the President of the United States for Arms Control, Non-Proliferation, and Disarmament, and in this capacity successfully led U.S. government efforts to achieve the permanent extension of the NPT. He also served for 15 years as the general counsel of ACDA. Amb. Graham worked on the negotiation of the Chemical Weapon Convention and the Biological Weapons Convention. He drafted the implementing legislation for the Biological Weapons Convention and managed the Senate approval of the ratification of the Geneva Protocol banning the use in war of chemical and biological weapons. He is Chairman of the Board of the Cypress Fund for Peace and Security. He is also Chairman of the Board of Mexco Energy Corporation, an oil and gas exploration company listed on the American Stock Exchange (stock ticker symbol MXC). Amb. Graham received an A.B. in 1955 from Princeton and a J.D. in 1961 from Harvard University. He is a member of the Kentucky, the District of Columbia and the New York Bars and is a member of the Council on Foreign Relations. He chaired the Committee on Arms Control and Disarmament of the American Bar Association from 1986-1994. Amb. Graham received the Trainor Award for Distinction in Diplomacy from Georgetown University in 1995. He has taught at the University of Virginia Law School, Georgetown School of Foreign Service, Georgetown University Law Center, Stanford University, University of California at Berkeley and the University of Washington. Amb. Graham is the author of Disarmament Sketches (2002), Cornerstones of Security (with Damien LaVera) (2003) and Common Sense on Weapons of Mass Destruction (2004).

3) Cornelius J. Milmoe

From 1994 to 2000, Mr. Milmoe served as General Counsel for General Electric's nuclear fuel business that provided nuclear fuel fabrication, software, and design services to 50 nuclear reactors in the U.S., Europe, Japan, Mexico, and Taiwan. At GE Nuclear Fuel, Mr. Milmoe led legal negotiations for all reactor reload contracts (valued at $30-$300 million each), created a Joint Venture with Hitachi and Toshiba to build a $70 million modern fuel processing plant that reduced costs by 30% and environmental effluents by 90%, and created a marketing Joint Venture with ENUSA that led to GE Nuclear's first fuel sales at plants in Germany and Finland. After leaving GE in 2000, Mr. Milmoe has run his own consulting firm, focusing on international energy transactions. Mr. Milmoe formed a project team to recover low enriched Uranium for fuel fabrication from Uranium concentrates at the Ulba Metallurgical plant in Kazakhstan. The United States Department of Energy ("DOE") - supported project team included GE, Brookhaven National Lab, Massachusetts Institute of Technology, Kazatomprom, and RWE Nukem. Mr. Milmoe's other projects include construction of a copper-beryllium alloy processing plant in Kazakhstan, sourcing zirconium components in Russia for Western nuclear power plants, and R & D agreements for advanced nuclear technologies.

Mr. Milmoe's firm has also received contracts to improve U.S. DOE reporting and management of all projects relating to the implementation of President Bush's National Energy Policy and DOE's international energy agreements, particularly science and technology agreements and nuclear non-proliferation agreements. Mr. Milmoe earned his BA from Colgate University (Hamilton, N.Y.) in 1969 and later earned his JD from Columbia University Law School (New York, N.Y.) and was admitted to the bar in 1974. From 1974-1980, Mr. Milmoe served as Staff Attorney and Special Assistant to the New York Public Service Commission. From 1980-1994, Mr. Milmoe served as counsel for the following divisions of General Electric: GE Naval & Small Steam Turbines, GE Aircraft Engines, GE Government Services, GE Automated Systems, GE Aircraft Instruments, GE Armament Systems, and GE Silicones.

About Novastar Resources

Novastar Resources is a publicly traded company within the commercial mining sector and is a commercial mining firm engaged in the exploration of thorium, a naturally occurring metal that can be used to provide nuclear energy, with non-proliferation, waste and economic advantages, in comparison to standard uranium fuels. Novastar Resources' stock is traded and quoted on the OTC Bulletin Board under the symbol "NVAS.OB". Further information is available on Novastar Resources' website at www.novastarresources.com.

About Thorium Power

Thorium Power was founded in 1992 to develop technology invented by Dr. Alvin Radkowsky, the first chief scientist of the U.S. Naval Reactors program under Admiral H.G. Rickover from 1950-1972 and head of the design team of the first commercial nuclear power plant in Shippingport, Pennsylvania. Thorium Power 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 has been collaborating with nuclear scientists and engineers at Russia's prestigious Kurchatov Institute since 1994. For more information, please visit www.thoriumpower.com.

Additional Information

This communication is not a solicitation of a proxy from any security holder of Novastar Resources. Novastar Resources intends to file with the Securities and Exchange Commission a registration statement that may include a joint proxy statement or prospectus or other relevant documents to be mailed to security holders in connection with the proposed merger of Novastar Resources and Thorium Power. WE URGE INVESTORS AND SECURITY HOLDERS TO READ THAT DOCUMENT AND ANY OTHER RELEVANT DOCUMENTS WHEN THEY BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT NOVASTAR RESOURCES, THORIUM POWER AND THE PROPOSED MERGER. Investors and security holders will be able to obtain these materials (when they are available) and other documents filed with the SEC free of charge at the SEC's website, www.sec.gov. In addition, a copy of any such document (when it becomes available) may be obtained free of charge from Novastar Resources Ltd., 8300 Greensboro Drive, Suite 800, McLean, Virginia 22102.

The respective directors and executive officers of Novastar Resources and other persons may be deemed to be participants in any solicitation of proxies in respect of the proposed transaction. Information regarding Novastar Resources' directors and executive officers is available in its proxy statement filed with the SEC by Novastar Resources on February 2, 2005. Other information regarding the participants in any proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in any joint proxy statement or prospectus or other relevant materials to be filed with the SEC when they become available.

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 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, statements regarding benefits of the proposed merger 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. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements made herein. These risks, as well as other risks associated with the merger, will be more fully discussed in any joint proxy statement or prospectus or other relevant document filed with the Securities and Exchange Commission in connection with the proposed merger. 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.

Novastar Resources Ltd. (OTC Bulletin Board:NVAS)