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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 Df+rSHFlKiPpMeI1Qe0o2wNxqtAOwrscBTlChWTs7J62sT2+6T+HrM06RYiMNs6I
 EAzvOlAsPnP0rRFqf6p2Vw==

<SEC-DOCUMENT>0001144204-06-031334.txt : 20060807
<SEC-HEADER>0001144204-06-031334.hdr.sgml : 20060807
<ACCEPTANCE-DATETIME>20060807164610
ACCESSION NUMBER:		0001144204-06-031334
CONFORMED SUBMISSION TYPE:	3
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20060727
FILED AS OF DATE:		20060807
DATE AS OF CHANGE:		20060807

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			NOVASTAR RESOURCES LTD.
		CENTRAL INDEX KEY:			0001084554
		STANDARD INDUSTRIAL CLASSIFICATION:	MINING, QUARRYING OF NONMETALLIC MINERALS (NO FUELS) [1400]
		IRS NUMBER:				911975651
		STATE OF INCORPORATION:			NV
		FISCAL YEAR END:			0630

	BUSINESS ADDRESS:	
		STREET 1:		1  E. LIBERTY STREET, SUITE 6000
		CITY:			RENO
		STATE:			NV
		ZIP:			89501
		BUSINESS PHONE:		604-904-6946

	MAIL ADDRESS:	
		STREET 1:		1  E. LIBERTY STREET, SUITE 6000
		CITY:			RENO
		STATE:			NV
		ZIP:			89501

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	NOVASTAR RESOURCES LTD
		DATE OF NAME CHANGE:	20050829

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CUSTOM BRANDED NETWORKS INC
		DATE OF NAME CHANGE:	20010622

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	AQUISTAR VENTURES USA INC
		DATE OF NAME CHANGE:	19990728

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			MUSHAKOV ANDREY
		CENTRAL INDEX KEY:			0001371007

	FILING VALUES:
		FORM TYPE:		3
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-28543
		FILM NUMBER:		061009465

	BUSINESS ADDRESS:	
		BUSINESS PHONE:		703 918 4905

	MAIL ADDRESS:	
		STREET 1:		NOVASTAR RESOURCES LTD
		STREET 2:		GREENSBORO DRIVE STE 800
		CITY:			MCLEAN
		STATE:			VA
		ZIP:			22102
</SEC-HEADER>
<DOCUMENT>
<TYPE>3
<SEQUENCE>1
<FILENAME>v049130_ex.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>3</documentType>

    <periodOfReport>2006-07-27</periodOfReport>

    <noSecuritiesOwned>0</noSecuritiesOwned>

    <issuer>
        <issuerCik>0001084554</issuerCik>
        <issuerName>NOVASTAR RESOURCES LTD.</issuerName>
        <issuerTradingSymbol>NVAS.OB</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001371007</rptOwnerCik>
            <rptOwnerName>MUSHAKOV ANDREY</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>1701 EAST WEST HIGHWAY, APT.401</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>SILVER SPRING</rptOwnerCity>
            <rptOwnerState>MD</rptOwnerState>
            <rptOwnerZipCode>20910</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>Executive Vice President</officerTitle>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeHolding>
            <securityTitle>
                <value>Common Stock, $0.001 par value</value>
            </securityTitle>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>1500000</value>
                    <footnoteId id="F1"/>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
    </nonDerivativeTable>

    <derivativeTable>
        <derivativeHolding>
            <securityTitle>
                <value>Stock Option</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>0.49</value>
            </conversionOrExercisePrice>
            <exerciseDate>
                <footnoteId id="F2"/>
            </exerciseDate>
            <expirationDate>
                <value>2016-07-27</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock, 0.001 par value</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>2250000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeHolding>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">The Common Stock of the Issuer was granted pursuant to an employment agreement between the Issuer and the Reporting Person,
 dated as of July 27, 2006.  The Reporting Person may not directly or indirectly sell, transfer or otherwise dispose of
 $750,000 of such shares for a period of one year and the remaining 750,000 shares for a period of two years.</footnote>
        <footnote id="F2">The option vested with respect to 234,375 shares on July 27, 2006 and thereafter vests in equal monthly installments until
 all shares underlying the option have vested.  The option immediately and automatically vests in full upon a Change of
 Control, the termination of the Reporting Person's employment by the Company without Cause, or the cessation by the
 Reporting Person of the Reporting Person's employment at the Company for Good Reason (all as defined in the employment
 agreement).</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Andrey Mushakov</signatureName>
        <signatureDate>2006-08-07</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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