Company: FMST
Filing Date: 2025-07-28
Form Type: DRS
Source: 0001171843-25-004725
Chunk: 91

Company: Foremost Clean Energy Ltd.
Filing Date: 2025-07-28
Form: DRS
Chunk 91
---
 may require. A failure to satisfy such reporting requirements may result in an extension of the time period during
which the IRS can assess a tax. U.S. Holders should consult their own tax advisors regarding the requirements of filing such information
returns under these rules, including the requirement to file an IRS Form 8621 annually.

We generally will be a PFIC if, for a tax year, (a) 75%
or more of our gross income for such tax year is passive income (the “income test”) or (b) 50% or more of our value assets
either produce passive income or are held for the production of passive income (the “asset test”), based on the quarterly
average of the fair market value of such assets. “Gross income” generally includes all sales revenues less the cost of goods
sold, plus income from investments and incidental or outside operations or sources, and “passive income” generally includes,
for example, dividends, interest, certain rents and royalties, certain gains from the sale of stock and securities, and certain gains
from commodities transactions. Active business gains arising from the sale of commodities generally are excluded from passive income if
substantially all of a foreign corporation’s commodities are stock in trade or inventory, depreciable property used in a trade or
business, or supplies regularly used or consumed in the ordinary course of its trade or business, and certain other requirements are satisfied.

For purposes of the PFIC income test and PFIC asset
test described above, if we own, directly or indirectly, 25% or more of the total value of the outstanding shares of another corporation,
we will be treated as if we (a) held a proportionate share of the assets of such other corporation and (b) received directly
a proportionate share of the income of such other corporation. In addition, for purposes of the PFIC income test and PFIC asset test described
above, and assuming certain other requirements are met, “passive income” does not include certain interest, dividends, rents,
or royalties that are received or accrued by us from certain “related persons” (as defined in Section 954(d)(3) of the
Code) also organized in Canada, to the extent such items are properly allocable to the income of such related person that is not passive
income.

Under certain attribution rules, if we are a PFIC,
U.S. Holders will generally be deemed to own their proportionate share of our direct or indirect equity interest in any