Company: FMST
Filing Date: 2025-07-28
Form Type: DRS
Source: 0001171843-25-004725
Chunk: 94

Company: Foremost Clean Energy Ltd.
Filing Date: 2025-07-28
Form: DRS
Chunk 94
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) net capital gain, which
will be taxed as long-term capital gain to such U.S. Holder, and (b) ordinary earnings, which will be taxed as ordinary income to
such U.S. Holder. Generally, “net capital gain” is the excess of (i) net long-term capital gain over (ii) net short-term
capital loss, and “ordinary earnings” are the excess of (x) “earnings and profits” over (y) net capital
gain. A U.S. Holder that makes a QEF Election will be subject to U.S. federal income tax on such amounts for each tax year in which we
are a PFIC, regardless of whether such amounts are actually distributed to such U.S. Holder by us. However, for any tax year in which
we are a PFIC and have no net income or gain, U.S. Holders that have made a QEF Election would not have any income inclusions as a result
of the QEF Election. If a U.S. Holder that made a QEF Election has an income inclusion, such a U.S. Holder may, subject to certain limitations,
elect to defer payment of current U.S. federal income tax on such amounts, subject to an interest charge. If such U.S. Holder is not a
corporation, any such interest paid will be treated as “personal interest,” which is not deductible.

A U.S. Holder that makes a timely and effective QEF
Election with respect us generally (a) may receive a tax-free distribution from us to the extent that such distribution represents
our “earnings and profits” that were previously included in income by the U.S. Holder because of such QEF Election and (b) will
adjust such U.S. Holder’s tax basis in the Common Shares to reflect the amount included in income or allowed as a tax-free distribution
because of such QEF Election. In addition, a U.S. Holder that makes a QEF Election generally will recognize capital gain or loss on the
sale or other taxable disposition of Common Shares.

The procedure for making a QEF Election, and the U.S.
federal income tax consequences of making a QEF Election, will depend on whether such QEF Election is timely. A QEF Election will be treated
as “timely” if such QEF Election is made for the first year in the U.S. Holder’s holding period for Common Shares in
which we are a PFIC. A U.S