Company: FMST
Filing Date: 2025-07-08
Form Type: POS AM
Source: 0001171843-25-004344
Chunk: 62

Company: Foremost Clean Energy Ltd.
Filing Date: 2025-07-08
Form: POS AM
Chunk 62
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 Warrant Shares are transferred.

If finalized in their current form, the proposed
Treasury Regulations applicable to PFICs would be effective for transactions occurring on or after April 1, 1992. Because the proposed
Treasury Regulations have not yet been adopted in final form, they are not currently effective, and there is no assurance that they will
be adopted in the form and with the effective date proposed. Nevertheless, the IRS has announced that, in the absence of final Treasury
Regulations, taxpayers may apply reasonable interpretations of the Code provisions applicable to PFICs and that it considers the rules
set forth in the proposed Treasury Regulations to be reasonable interpretations of those Code provisions. The PFIC rules are complex,
and the implementation of certain aspects of the PFIC rules requires the issuance of Treasury Regulations which in many instances have
not been promulgated and which, when promulgated, may have retroactive effect. U.S. Holders should consult their own tax advisors about
the potential applicability of the proposed Treasury Regulations.

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, Pre-Funded Warrants, Common Share Purchase Warrants or Warrant Shares as security
for a loan will, except as may be provided in Treasury Regulations, be treated as having made a taxable disposition of such common shares,
Pre-Funded Warrants, Common Share Purchase Warrants or Warrant Shares.

In addition, a U.S. Holder who acquires common shares,
Pre-Funded Warrants, Common Share Purchase Warrants or Warrant Shares from a decedent will not receive a “step up” in tax
basis of such common shares, Pre-Funded Warrants, Common Share Purchase Warrants or Warrant Shares to fair market value unless such decedent
had a timely and effective QEF Election in place.

Special rules also apply to the amount of foreign
tax credit that a U.S. Holder may claim on a distribution from a PFIC. Subject to such special rules, foreign taxes paid with respect
to any distribution in respect of stock in a PFIC are generally eligible for the foreign tax credit. The rules relating to distributions
by a PFIC and their eligibility for the foreign tax credit are complicated, and a U.S. Holder should consult with its