Company: FMST
Filing Date: 2025-06-20
Form Type: POS AM
Source: 0001171843-25-004006
Chunk: 53

Company: Foremost Clean Energy Ltd.
Filing Date: 2025-06-20
Form: POS AM
Chunk 53
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 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.

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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 company that is
also a PFIC (a “Subsidiary PFIC”), and will generally be subject to U.S. federal income tax as described below under “Default PFIC Rules Under Section 1291 of the Code” on their proportionate share of (a) any “excess distributions,” as described
below, on the stock of a Subsidiary PFIC and (b) a disposition or deemed disposition of the stock of a Subsidiary PFIC by us or another
Subsidiary PFIC, both as if such U.S. Holders directly held the shares of such Subsidiary PFIC. In addition, U.S. Holders may be subject
to U.S. federal income tax on any indirect gain realized on the stock of a Subsidiary PFIC on the sale or disposition