Company: FMST
Filing Date: 2025-07-28
Form Type: DRS
Source: 0001171843-25-004725
Chunk: 92

Company: Foremost Clean Energy Ltd.
Filing Date: 2025-07-28
Form: DRS
Chunk 92
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 company that is
also a PFIC (a “Subsidiary PFIC”), and will generally be subject to U.S. federal income tax on their proportionate
share of (a) any “excess distributions,” as described below, on the stock of a Subsidiary PFIC and (b) a disposition
or deemed disposition of the stock of a Subsidiary PFIC by us or another Subsidiary PFIC, both as if such U.S. Holders directly held the
shares of such Subsidiary PFIC. In addition, U.S. Holders may be subject to U.S. federal income tax on any indirect gain realized on the
stock of a Subsidiary PFIC on the sale or disposition of Common Shares. Accordingly, U.S. Holders should be aware that they could be subject
to tax under the PFIC rules even if no distributions are received and no redemptions or other dispositions of Common Shares are made.

Default PFIC Rules Under Section 1291 of the Code

If we were a PFIC for any tax year during which a
U.S. Holder owns Common Shares, the U.S. federal income tax consequences to such U.S. Holder of the acquisition, ownership, and disposition
of Common Shares will depend on whether and when such U.S. Holder makes an election to treat us and each Subsidiary PFIC, if any, as a
“qualified electing fund” or “QEF” under Section 1295 of the Code (a “QEF Election”) or
makes a mark-to-market election under Section 1296 of the Code (a “Mark-to-Market Election”) with respect to the
Common Shares. A U.S. Holder that does not make either a QEF Election or a Mark-to-Market Election will be referred to in this summary
as a “Non-Electing U.S. Holder.”

A Non-Electing U.S. Holder will be subject to the
rules of Section 1291 of the Code (described below) with respect to: (a) any gain recognized on the sale or other taxable disposition
of Common Shares; and (b) any “excess distribution” received on Common Shares. A distribution generally will be an “excess
distribution” to the extent that such distribution (together with all other distributions received in the current tax year) exceeds
125% of the average distributions received during the three preceding tax years (or