Exhibit
99.2
Novastar
Resources in Formal Negotiations to Merge with Thorium Power,
Inc.
Novastar
Resources Ltd. (OTCBB: NVAS), a commercial mining firm engaged in the
exploration of Thorium, Platinum Group Metals, and Rare Earth Metals, has today
announced that it is in formal discussions relating to a business combination
with privately held Thorium Power, Inc. with offices in the Washington D.C.
area. Upon consummation of the proposed merger, the shareholders of Thorium
Power would own a slight majority of the combined company.
Novastar
Resources expects to enter into definitive agreements with Thorium Power
relating to the business combination during the first calendar quarter of 2006.
The closing would be subject to customary closing conditions, including
satisfactory completion of due diligence by both parties. The combined company
also anticipates a name change to "Thorium Power, Ltd." and a related symbol
change.
The
acquisition of Thorium Power would strengthen the Novastar Resources business
model by combining the intellectual property assets of Thorium Power with the
mineral properties of Novastar Resources and the benefits of being a
publicly-traded company. In addition, upon closing of the proposed merger,
Seth
Grae will be named the CEO of the combined company.
Novastar
Resources COO and Interim CEO, Dr. Charles Merchant, stated "We expect the
merger to allow for the production of nuclear power with enhanced proliferation
resistance and the ability to produce electricity through the elimination of
existing plutonium stockpiles. We also expect the merger to enhance the value
of
our existing mining properties.”
Thorium
Power, Inc. President Seth Grae commented "Today marks exactly 14 years since
the incorporation of Thorium Power. The timing is now perfect to combine
Novastar Resources’ access to the public capital markets, institutional investor
base and mining properties with Thorium Power’s technology and government and
industry relationships. We believe this merger is the best way to maximize
shareholder value for all shareholders involved in both companies."
About
Thorium Power, Inc.
Thorium
Power, Inc. 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. The Company 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, Inc. has been collaborating with nuclear
scientists and engineers at Russia's prestigious Kurchatov Institute since
1994.
For more information, please visit: www.thoriumpower.com.
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, 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. 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.
Contact
Dr.
Charles Merchant, Chief Operating Officer
Telephone
(800) 685-8082
or
David
J.
DiRicco, Investor Relations
(877)
995-0992