FORM 3
 UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
  GRAE SETH
 2. Date of Event Requiring Statement (Month/Day/Year)
03/17/2006		 3. Issuer Name and Ticker or Trading Symbol
NOVASTAR RESOURCES LTD. [NVAS]
(Last)
(First)
(Middle)
1249 BEVERLY ROAD		 4. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
__X__ Director _____ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
CEO and President
 5. If Amendment, Date Original Filed(Month/Day/Year)
(Street)

MCLEAN, VA 22101		 6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Beneficially Owned
1.Title of Security
(Instr. 4)		 2. Amount of Securities Beneficially Owned
(Instr. 4)		 3. Ownership Form: Direct (D) or Indirect (I)
(Instr. 5)		 4. Nature of Indirect Beneficial Ownership
(Instr. 5)
Common Stock, $0.001 par value 6,000,000
D
 

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly. SEC 1473 (7-02)
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Table II - Derivative Securities Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 4)		 2. Date Exercisable and Expiration Date
(Month/Day/Year)		 3. Title and Amount of Securities Underlying Derivative Security
(Instr. 4)		 4. Conversion or Exercise Price of Derivative Security 5. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 5)		 6. Nature of Indirect Beneficial Ownership
(Instr. 5)
Date Exercisable Expiration Date Title Amount or Number of Shares
Employee Stock Option (Right to Buy)   (1) 02/14/2016 Common Stock, $0.001 par value 7,200,000 $ 0.795 D  

Reporting Owners

Reporting Owner Name / Address Relationships
Director 10% Owner Officer Other
GRAE SETH
1249 BEVERLY ROAD
MCLEAN, VA 22101		   X     CEO and President  

Signatures

/s/ Seth Grae 03/27/2006
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 5(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) The option vests with respect to 6/48 of the total number of shares granted on August 14, 2006 and thereafter vests in equal monthly installment of 1/48 over a four year term until all shares underlying the option have vested. The option immediately and automatically vests in full upon a Change of Control, the termination of Seth Grae's employment by the Company without Cause, or the cessation of Seth Grae's employment at the Company by Seth Grae for Good Reason. "Change of Control", "Cause", and "Good Reason" are each defined in that certain employment agreement between Seth Grae and the Company, effective as of February 14, 2006 (such employment agreement was filed as Exhibit 10.2, and the stock option agreement was filed as Exhibit 10.3, to a Current Report on Form 8-K of the Company that was filed on February 21, 2006).
 
Remarks:
Directorship shall only become effective on April 2, 2006.

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