Company: FMST
Filing Date: 2025-07-28
Form Type: DRS
Source: 0001171843-25-004725
Chunk: 89

Company: Foremost Clean Energy Ltd.
Filing Date: 2025-07-28
Form: DRS
Chunk 89
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 own tax advisors regarding the U.S. federal, U.S. state and local, and non-U.S. tax consequences
arising from and relating to the acquisition, ownership, and disposition of Common Shares.

| S-16 |

Ownership and Disposition of Common Shares

The following discussion is subject in its entirety
to the rules described below under the heading “Passive Foreign Investment Company Rules”.

A U.S. Holder that receives a distribution, including
a constructive distribution, with respect to a Common Share will be required to include the amount of such distribution in gross income
as a dividend (without reduction for any Canadian income tax withheld from such distribution) to the extent of our current and accumulated
“earnings and profits”, as computed for U.S. federal income tax purposes. A dividend generally will be taxed to a U.S. Holder
at ordinary income tax rates if we are a PFIC for the tax year of such distribution or the preceding tax year. To the extent that a distribution
exceeds our current and accumulated “earnings and profits”, such distribution will be treated first as a tax-free return of
capital to the extent of a U.S. Holder’s adjusted tax basis in the Common Shares and thereafter as gain from the sale or exchange
of such Common Shares (see Sale or Other Taxable Disposition of Common Shares below). However, we may not maintain the calculations of
our earnings and profits in accordance with U.S. federal income tax principles, and each U.S. Holder should therefore assume that any
distribution by us with respect to the Common Shares will constitute ordinary dividend income. Dividends received on Common Shares by
corporate U.S. Holders generally will not be eligible for the “dividends received deduction”. Subject to applicable limitations
and provided we are eligible for the benefits of the Treaty or the Common Shares are readily tradable on a United States securities market,
dividends paid by us to non-corporate U.S. Holders, including individuals, generally will be eligible for the preferential tax rates applicable
to long-term capital gains for dividends, provided certain holding period and other conditions are satisfied, including that we not be
classified as a PFIC (as defined below) in the tax year of distribution or in the preceding tax year. The dividend rules are complex,
and each U.S. Holder should consult its own tax advisor regarding the application of such rules.

A U.S. Holder will generally recognize gain or loss
on the sale or other taxable disposition of Common