Company: FMST
Filing Date: 2025-07-28
Form Type: DRS
Source: 0001171843-25-004725
Chunk: 53

Company: Foremost Clean Energy Ltd.
Filing Date: 2025-07-28
Form: DRS
Chunk 53
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not to exceed the excess, if any, of (a) the
amount included in ordinary income because of such Mark-to-Market Election for prior tax years over (b) the amount allowed as a deduction
because of such Mark-to-Market Election for prior tax years). Losses that exceed this limitation are subject to the rules generally applicable
to losses provided in the Code and Treasury Regulations.

A U.S. Holder makes a Mark-to-Market Election by attaching
a completed IRS Form 8621 to a timely filed United States federal income tax return. A Mark-to-Market Election applies to the tax
year in which such Mark-to-Market Election is made and to each subsequent tax year, unless the Common Shares cease to be “marketable
stock” or the IRS consents to revocation of such election. Each U.S. Holder should consult its own tax advisors regarding the availability
of, and procedure for making, a Mark-to-Market Election.

Although a U.S. Holder may be eligible to make a Mark-to-Market
Election with respect to the Common Shares, no such election may be made with respect to the stock of any Subsidiary PFIC that a U.S.
Holder is treated as owning, because such stock is not marketable. Hence, the Mark-to-Market Election will not be effective to avoid the
application of the default rules of Section 1291 of the Code described above with respect to deemed dispositions of Subsidiary PFIC
stock or excess distributions from a Subsidiary PFIC to its shareholder.

| 26 |

Other PFIC Rules

Under Section 1291(f) of the Code, the IRS has
issued proposed Treasury Regulations that, subject to certain exceptions, would cause a U.S. Holder that had not made a timely QEF Election
to recognize gain (but not loss) upon certain transfers of Common Shares that would otherwise be tax-deferred (e.g., gifts and exchanges
pursuant to corporate reorganizations). However, the specific U.S. federal income tax consequences to a U.S. Holder may vary based on
the manner in which the Common Shares are transferred.

Certain additional adverse rules may apply with respect
to a U.S. Holder if we are a PFIC, regardless of whether such U.S. Holder makes a QEF Election. For example, under Section 1298(b)(6)
of the Code, a U.S. Holder that uses Common Shares as security for a loan will, except