Company: FMST
Filing Date: 2025-06-20
Form Type: POS AM
Source: 0001171843-25-004006
Chunk: 51

Company: Foremost Clean Energy Ltd.
Filing Date: 2025-06-20
Form: POS AM
Chunk 51
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 a U.S. court may not respect the allocation set forth above. Each U.S. Holder should consult
its own tax advisor regarding the allocation of the purchase price for the Pre-Funded Warrant Units.

Treatment of Pre-Funded Warrants

Although it is not entirely free from doubt, we believe
that a Pre-Funded Warrant should be treated as a separate class of our common shares for U.S. federal income tax purposes and a U.S. Holder
of Pre-Funded Warrants should generally be taxed in the same manner as a holder of common shares except as described below. Accordingly,
no gain or loss should be recognized upon the exercise of a Pre-Funded Warrant and, upon exercise, the holding period of a Pre-Funded
Warrant should carry over to the common shares received. Similarly, the tax basis of the Pre-Funded Warrant should carry over to the common
shares received upon exercise, increased by the exercise price of $0.01 per common share. However, such characterization is not binding
on the IRS, and the IRS may treat the Pre-Funded Warrants as warrants to acquire common shares. If so, the amount and character of a U.S.
Holder's gain with respect to an investment in Pre-Funded Warrants could change, and a U.S. Holder may not be entitled to make the "QEF
Election" or "Mark-to-Market Election" described below with respect to the Pre-Funded Warrants to mitigate PFIC consequences
in the event that we are classified as a PFIC. Accordingly, each U.S. Holder should consult its own tax advisor regarding the risks associated
with the acquisition of a Pre-Funded Warrant pursuant to this offering (including potential alternative characterizations). The balance
of this discussion generally assumes that the characterization described above is respected for U.S. federal income tax purposes.

Passive Foreign Investment Company Rules

If we were to constitute a “passive foreign
investment company” or “PFIC” for any year during a U.S. Holder’s holding period, then certain potentially adverse
rules would affect the U.S. federal income tax consequences to a U.S. Holder resulting from the acquisition, ownership and disposition
of Common Share Units, Pre-Funded Warrant Units, common shares, Pre-Funded Warrants, Common Share Purchase Warrants and Warrant Shares.
We believe we were a “passive foreign investment company” (a “PFIC”) within the meaning of Section 1297
of the U