Company: FMST
Filing Date: 2025-06-20
Form Type: POS AM
Source: 0001171843-25-004006
Chunk: 58

Company: Foremost Clean Energy Ltd.
Filing Date: 2025-06-20
Form: POS AM
Chunk 58
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 the QEF Election will be effective and the U.S. Holder will be subject to the QEF rules
described above during any subsequent tax year in which we qualify as a PFIC.

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As discussed above, under proposed Treasury Regulations,
if a U.S. Holder has an option, warrant or other right to acquire stock of a PFIC (such as the Common Share Purchase Warrants), such option,
warrant or right is considered to be PFIC stock subject to the default rules of Section 1291 of the Code. However, a U.S. Holder of an
option, warrant or other right to acquire stock of a PFIC may not make a QEF Election that will apply to the option, warrant or other
right to acquire PFIC stock. In addition, under proposed Treasury Regulations, if a U.S. Holder holds an option, warrant or other right
to acquire stock of a PFIC, the holding period with respect to shares of stock of the PFIC acquired upon exercise of such option, warrant
or other right will include the period that the option, warrant or other right was held.

Consequently, under the proposed Treasury Regulations,
if a U.S. Holder of common shares makes a QEF Election, such election generally will not be treated as a timely QEF Election with respect
to Warrant Shares and the rules of Section 1291 of the Code discussed above will continue to apply with respect to such U.S. Holder's
Warrant Shares. However, a U.S. Holder of Warrant Shares should be eligible to make a timely QEF Election if such U.S. Holder makes a
"purging" or "deemed sale" election to recognize gain (which will be taxed under the default rules of Section 1291
of the Code discussed above) as if such Warrant Shares were sold for fair market value. As a result of the "purging" or "deemed
sale" election, the U.S. Holder will have a new basis and holding period in the Warrant Shares acquired upon the exercise of the
Common Share Purchase Warrants for purposes of the PFIC rules. In addition, gain recognized on the sale or other taxable disposition (other
than by exercise) of the Common Share Purchase Warrants by a U.S. Holder will be subject to the rules of Section 1291 of the Code discussed
above. Each U.S. Holder should consult its own tax advisor regarding the application of the PFIC