Company: FMST
Filing Date: 2025-08-06
Form Type: F-3
Source: 0001171843-25-005054
Chunk: 47

Company: Foremost Clean Energy Ltd.
Filing Date: 2025-08-06
Form: F-3
Chunk 47
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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 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 of Common Shares. Accordingly, U.S. Holders should be aware that they could be subject
to tax under the PFIC rules even if no distributions are received and no redemptions or other dispositions of Common Shares are made.

Default PFIC Rules Under Section 1291 of the Code

If we were a PFIC for any tax year during which a
U.S. Holder owns Common Shares, the U.S. federal income tax consequences to such U.S. Holder of the acquisition, ownership, and disposition
of Common Shares will depend on whether and when such U.S. Holder makes an election to treat us and each Subsidiary PFIC, if any, as a
“qualified electing fund” or “QEF” under Section 1295 of the Code (a “QEF Election”) or
makes a mark-to-market election under Section 1296 of the Code (a “Mark-to-Market Election”) with respect to the
Common Shares. A U.S. Holder that does not make either a QEF Election or a Mark-to-Market Election will be referred to in this summary
as a “Non-Elect