Company: FMST
Filing Date: 2025-06-20
Form Type: 20-F
Source: 0001171843-25-004004
Chunk: 234

Company: Foremost Clean Energy Ltd.
Filing Date: 2025-06-20
Form: 20-F
Item: Item 19
Chunk 234
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 matters of significant judgment, they cannot be determined with precision. Changes in assumptions can significantly affect estimated fair values.

Financial instruments measured at fair value are classified into oneof threelevels in the fair value hierarchy according to the relative reliability of the inputs used to estimate the fair values. The threelevels of the fair value hierarchy are:

Level1- Unadjusted quoted prices in active markets for identical assets and liabilities;

Level2- Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly; and

Level3- Inputs that are notbased on observable market data.

The fair value of the Company’s marketable securities and derivative liability were calculated using Level1inputs.

The carrying value of cash, receivables, accounts payable and accrued liabilities, and short-term loans payable approximate their fair value because of the short-term nature of these instruments.

Financial risk factors

The Company’s risk exposures and the impact on the Company’s financial instruments are summarized below:

Credit risk

Credit risk is the risk of loss associated with a counterparty’s inability to fulfill its payment obligations. Financial instruments that potentially subject the Company to a significant concentration of credit risk consists primarily of cash. The Company limits its exposure to credit loss by placing its cash with major Canadian financial institutions.

Liquidity risk

The Company’s approach to managing liquidity risk is to ensure that it will have sufficient liquidity to meet liabilities when due. As atMarch 31, 2025, the Company had a cash balance of $5,005,346(2024- $998,262) to settle current liabilities of $3,248,777(2024- $3,389,320). All of the Company’s financial liabilities have contractual maturities of30days or are due on demand and are subject to normal trade terms. The Company is exposed to liquidity risk and is dependent on obtaining regular financings in order to continue as a going concern. Despite previous success in acquiring these financings, there is noguarantee of obtaining future financings.

Market risk

Market risk is the risk of loss that mayarise from changes in market factors such as interest rates, foreign exchange rates, and commodity and equity prices.

Interest rate risk

The Company has cash balances and novariable interest-bearing debt. The Company’s cash does nothave significant exposure to interest rate risk.

Foreign currency risk

The Company is exposed to foreign currency risk on fluctuations related to cash, accounts payable and accrued liabilities that are denominated in a foreign currency. There is a