Company: FMST
Filing Date: 2025-06-20
Form Type: 20-F
Source: 0001171843-25-004004
Chunk: 21

Company: Foremost Clean Energy Ltd.
Filing Date: 2025-06-20
Form: 20-F
Item: Item 3
Chunk 21
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 the interest charge may exceed the total amount of proceeds realized on the disposition, or the amount of excess distribution received, by the U. S. taxpayer. Subject to certain limitations, these tax consequences may be mitigated if a U. S. taxpayer makes a timely and effective QEF Election (as defined below) or a Mark-to-Market Election (as defined below). U. S. taxpayers should be aware that there can be no assurances that we will satisfy the record keeping requirements that apply to a QEF (as defined below), or that we will supply U. S. taxpayers with information that such U. S. taxpayers are required to report under the QEF rules, in the event that we are a PFIC. Thus, U. S. Holders may not be able to make a QEF Election with respect to their common shares. A U. S. taxpayer who makes a Mark-to-Market Election generally must include as ordinary income each year the excess of the fair market value of the common shares over the taxpayer’s basis therein.

17

Proposed legislation in the U. S. Congress, including changes in U. S. tax law, may adversely impact us and the value of the common shares.

Changes to U. S. tax laws (which changes may have retroactive application) could adversely affect us or holders of the common shares. In recent years, many changes to U. S. federal income tax laws have been proposed and made, and additional changes to U. S. federal income tax laws are likely to continue to occur in the future.

The U. S. Congress is currently considering numerous items of legislation which may be enacted prospectively or with retroactive effect, which legislation could adversely impact our financial performance and the value of the common shares. Additionally, states in which we operate or own assets may impose new or increased taxes. If enacted, most of the proposals would be effective for the current or later years. The proposed legislation remains subject to change, and its impact on us and purchasers of the common shares is uncertain.

In addition, the Inflation Reduction Act of 2022 includes provisions that impact the U. S. federal income taxation of corporations. Among other items, this legislation includes provisions that impose a minimum tax on the book income of certain large corporations and an excise tax on certain corporate stock repurchases that would be imposed on the corporation repurchasing such stock. It remains unclear in certain respects how this legislation will be implemented by the U. S. Department of the Treasury and we cannot