Company: FMST
Filing Date: 2025-06-20
Form Type: 20-F
Source: 0001171843-25-004004
Chunk: 168

Company: Foremost Clean Energy Ltd.
Filing Date: 2025-06-20
Form: 20-F
Item: Item 10
Chunk 168
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EF 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 the common shares in which we are a PFIC. A U. S. Holder may make a timely QEF Election by filing the appropriate QEF Election documents at the time such U. S. Holder files a U. S. federal income tax return for such year. If a U. S. Holder does not make a timely and effective QEF Election for the first year in the U. S. Holder’s holding period for the common shares, the U. S. Holder may still be able to make a timely and effective QEF Election in a subsequent year if such U. S. Holder meets certain requirements and makes a “purging” election to recognize gain (which will be taxed under the rules of Section 1291 of the Code discussed above) as if such common shares were sold for their fair market value on the day the QEF Election is effective. If a U. S. Holder makes a QEF Election but does not make a “purging” election to recognize gain as discussed in the preceding sentence, then such U. S. Holder shall be subject to the QEF Election rules and shall continue to be subject to tax under the rules of Section 1291 of the Code discussed above with respect to its common shares. If a U. S. Holder owns PFIC stock indirectly through another PFIC, separate QEF Elections must be made for the PFIC in which the U. S. Holder is a direct shareholder and the Subsidiary PFIC for the QEF rules to apply to both PFICs.

A QEF Election will apply to the tax year for which such QEF Election is timely made and to all subsequent tax years, unless such QEF Election is invalidated or terminated or the IRS consents to revocation of such QEF Election. If a U. S. Holder makes a QEF Election and, in a subsequent tax year, we cease to be a PFIC, the QEF Election will remain in effect (although it will not be applicable) during those tax years in which we are not a PFIC. Accordingly, if we become a PFIC in another subsequent tax year, the QEF Election will be effective and the U. S. Holder will be subject to the QEF rules described above during any subsequent tax year in which we qualify as a PFIC.

U.