Company: FMST
Filing Date: 2025-07-28
Form Type: DRS
Source: 0001171843-25-004725
Chunk: 90

Company: Foremost Clean Energy Ltd.
Filing Date: 2025-07-28
Form: DRS
Chunk 90
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 Shares in an amount equal to the difference, if any, between (a) the amount of
cash plus the fair market value of any property received and (b) such U.S. Holder’s adjusted tax basis in such Common Shares
sold or otherwise disposed of. Any such gain or loss recognized on such sale or other disposition generally will be capital gain or loss,
which will be long-term capital gain or loss if, at the time of the sale or other disposition, such Common Shares are held for more than
one year.

Preferential tax rates apply to long-term capital
gains of a U.S. Holder that is an individual, estate, or trust. There are currently no preferential tax rates for long-term capital gains
of a U.S. Holder that is a corporation. Deductions for capital losses are subject to significant limitations under the Code.

Passive Foreign Investment Company Rules

If we were to constitute a “passive foreign
investment company” or “PFIC” within the meaning of Section 1297(a) of the Code for any year during a U.S. Holder’s
holding period for its Common Shares, then certain potentially adverse rules would affect the U.S. federal income tax consequences to
a U.S. Holder resulting from the acquisition, ownership and disposition of Common Shares. We believe that we were a PFIC for our most
recently completed taxable year and based on the nature of our business, the projected composition of our gross income, and the projected
composition and estimated fair market values of our assets, we expect to be a PFIC for our current taxable year and may be a PFIC in subsequent
tax years. No opinion of legal counsel or ruling from the IRS concerning our status as a PFIC has been obtained or is currently planned
to be requested. However, PFIC classification is fundamentally factual in nature, generally cannot be determined until the close of the
tax year in question and is determined annually. Additionally, the analysis depends, in part, on the application of complex U.S. federal
income tax rules, which are subject to differing interpretations. Consequently, there can be no assurance that we have never been and
will not become a PFIC for any tax year during which U.S. Holders hold Common Shares.

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In addition, in any year in which we are classified
as a PFIC, a U.S. Holder will be required to file an annual report with the IRS containing such information as Treasury Regulations and/or
other IRS guidance