Company: FMST
Filing Date: 2025-08-06
Form Type: F-3
Source: 0001171843-25-005054
Chunk: 49

Company: Foremost Clean Energy Ltd.
Filing Date: 2025-08-06
Form: F-3
Chunk 49
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 of the last tax year for which we were a PFIC.

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QEF Election

A U.S. Holder that makes a timely and effective QEF
Election for the first tax year in which the holding period of its Common Shares begins generally will not be subject to the default rules
of Section 1291 of the Code discussed above with respect to its Common Shares. A U.S. Holder that makes a timely and effective QEF
Election will be subject to U.S. federal income tax on such U.S. Holder’s pro rata share of our (a) 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