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 *
  MUSHAKOV ANDREY
 2. Date of Event Requiring Statement (Month/Day/Year)
07/27/2006		 3. Issuer Name and Ticker or Trading Symbol
NOVASTAR RESOURCES LTD. [NVAS.OB]
(Last)
(First)
(Middle)
1701 EAST WEST HIGHWAY, APT.401		 4. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
_____ Director _____ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
Executive Vice President
 5. If Amendment, Date Original Filed(Month/Day/Year)
(Street)

SILVER SPRING, MD 20910		 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 1,500,000 (1)
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
Stock Option   (2) 07/27/2016 Common Stock, 0.001 par value 2,250,000 $ 0.49 D  

Reporting Owners

Reporting Owner Name / Address Relationships
Director 10% Owner Officer Other
MUSHAKOV ANDREY
1701 EAST WEST HIGHWAY, APT.401
SILVER SPRING, MD 20910		       Executive Vice President  

Signatures

/s/ Andrey Mushakov 08/07/2006
**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 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.
(2) 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).

Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, See Instruction 6 for procedure.

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