Company: FMST
Filing Date: 2025-06-20
Form Type: POS AM
Source: 0001171843-25-004006
Chunk: 66

Company: Foremost Clean Energy Ltd.
Filing Date: 2025-06-20
Form: POS AM
Chunk 66
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 our assets, depending on the circumstances of such adjustment (for example, if such adjustment is to compensate for
a distribution of cash or other property to the shareholders). Adjustments to the exercise price of Common Share Purchase Warrants made
pursuant to a bona fide reasonable adjustment formula that has the effect of preventing dilution of the interest of the holders of the
Common Share Purchase Warrants should generally not be considered to result in a constructive distribution. Any such constructive distribution
would be taxable whether or not there is an actual distribution of cash or other property. (See more detailed discussion of the rules
applicable to distributions made by us at "Distributions on Common Shares, Pre-Funded Warrants and Warrant Shares" below).

General Rules Applicable to the Ownership and Disposition of Common Shares, Pre-Funded Warrants and Warrant Shares

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

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Distributions on Common Shares, Pre-Funded Warrants and Warrant Shares

A U.S. Holder that receives a distribution, including
a constructive distribution, with respect to a common share, Pre-Funded Warrant or Warrant Share (as well as any constructive distribution
on a Common Share Purchase Warrant) 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 or 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 were a PFIC for 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 tax basis in the common shares, Pre-Funded Warrants or Warrant Shares and thereafter as
gain from the sale or exchange of such common shares, Pre-Funded Warrants or Warrant Shares. (See “Sale or Other Taxable Disposition of Common Shares, Pre-Funded Warrants and/or Warrant Shares” below). However, we do not intend to maintain the calculations
of our earnings and profits in accordance with U.S. federal income tax principles, and