Company: FMST
Filing Date: 2025-06-20
Form Type: POS AM
Source: 0001171843-25-004006
Chunk: 61

Company: Foremost Clean Energy Ltd.
Filing Date: 2025-06-20
Form: POS AM
Chunk 61
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unded Warrant. As a result,
if a Mark-to-Market Election has been made by a U.S. Holder with respect to common shares, any common shares received upon exercise of
a Pre-Funded Warrant will automatically be marked-to-market in the year of exercise. Because a U.S. Holder's holding period for common
shares received upon exercise of a Pre-Funded Warrant should include the period during which such U.S. Holder held the Pre-Funded Warrant,
a U.S. Holder will be treated as making a Mark-to-Market Election with respect to such common shares after the beginning of such U.S.
Holder's holding period for such common shares unless such common shares are acquired in the same tax year as the year in which the U.S.
Holder acquired its Pre-Funded Warrant Units. Consequently, the default rules under Section 1291 described above generally will apply
to the mark-to-market gain realized in the tax year in which such common shares are received upon the exercise of the Pre-Funded Warrants.
However, the general mark-to-market rules will apply to subsequent tax years.

A U.S. Holder that makes a Mark-to-Market Election
will include in ordinary income, for each tax year in which we are a PFIC, an amount equal to the excess, if any, of (a) the fair market
value of the common shares and any Warrant Shares, as of the close of such tax year over (b) such U.S. Holder’s adjusted tax basis
in such common shares and any Warrant Shares. A U.S. Holder that makes a Mark-to-Market Election will be allowed a deduction in an amount
equal to the excess, if any, of (a) such U.S. Holder’s adjusted tax basis in the common shares and any Warrant Shares, over (b)
the fair market value of such common shares and any Warrant Shares (but only to the extent of the net amount of previously included income
as a result of the Mark-to-Market Election for prior tax years).

A U.S. Holder that makes a Mark-to-Market Election
generally also will adjust such U.S. Holder’s tax basis in the common shares and Warrant Shares to reflect the amount included in
gross income or allowed as a deduction because of such Mark-to-Market Election. In addition, upon a sale or other taxable disposition
of common shares and Warrant Shares, a U.S. Holder that makes a Mark-to-Market Election will recognize ordinary