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Freeport-McMoRan Copper & Gold Inc. Reports Fourth-Quarter and Year Ended December 31, 2012 Results

  Freeport-McMoRan Copper & Gold Inc. Reports Fourth-Quarter and Year Ended
  December31, 2012 Results

Business Wire

PHOENIX -- January 22, 2013

Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX):

  *Net income attributable to common stock for fourth-quarter 2012 was $743
    million, $0.78 per share, compared with net income of $640 million, $0.67
    per share, for fourth-quarter 2011. Net income attributable to common
    stock for the year 2012 was $3.0 billion, $3.19 per share, compared with
    $4.6 billion, $4.78 per share, for the year 2011.
  *Consolidated sales from mines for fourth-quarter 2012 totaled 972 million
    pounds of copper, 254 thousand ounces of gold and 21 million pounds of
    molybdenum, compared with 823 million pounds of copper, 133 thousand
    ounces of gold and 19 million pounds of molybdenum for fourth-quarter
    2011. Consolidated sales for the year 2012 totaled 3.65 billion pounds of
    copper, 1.0 million ounces of gold and 83 million pounds of molybdenum,
    compared with 3.70 billion pounds of copper, 1.4 million ounces of gold
    and 79 million pounds of molybdenum for the year 2011.
  *Consolidated sales from mines for the year 2013 are expected to
    approximate 4.3 billion pounds of copper, 1.4 million ounces of gold and
    90 million pounds of molybdenum, including 940 million pounds of copper,
    230 thousand ounces of gold and 23 million pounds of molybdenum for
    first-quarter 2013.
  *Consolidated unit net cash costs (net of by-product credits) averaged
    $1.54 per pound of copper for fourth-quarter 2012, compared with $1.57 per
    pound for fourth-quarter 2011. Based on current sales volume and cost
    estimates and assuming average prices of $1,700 per ounce for gold and $11
    per pound for molybdenum, consolidated unit net cash costs (net of
    by-product credits) are estimated to average $1.35 per pound of copper for
    the year 2013.
  *Operating cash flows totaled $1.3 billion for fourth-quarter 2012
    (including $122 million of net working capital sources and other tax
    payments) and $3.8 billion (net of $1.4 billion in working capital uses
    and other tax payments) for the year 2012, compared with $746 million for
    fourth-quarter 2011 (net of $335 million in working capital uses and other
    tax payments) and $6.6 billion (net of $461 million in working capital
    uses and other tax payments) for the year 2011. Based on current sales
    volume and cost estimates and assuming average prices of $3.65 per pound
    for copper, $1,700 per ounce for gold and $11 per pound for molybdenum,
    operating cash flows are estimated to approximate $7 billion for the year
    2013, excluding results of pending acquisitions.
  *Capital expenditures totaled $976 million for fourth-quarter 2012 and $3.5
    billion for the year 2012, compared with $785 million for fourth-quarter
    2011 and $2.5 billion for the year 2011. Excluding amounts for pending
    acquisitions, capital expenditures are expected to approximate $4.6
    billion for the year 2013, including $2.8 billion for major projects and
    $1.8 billion for sustaining capital.
  *At December31, 2012, consolidated cash totaled $3.7 billion and total
    debt totaled $3.5 billion.
  *On December 5, 2012, FCX announced definitive agreements to acquire Plains
    Exploration & Production Company (PXP) and McMoRan Exploration Co. (MMR)
    in transactions totaling $20 billion, which would create a premier
    U.S.-based natural resource company. The transactions are expected to
    close in second-quarter 2013.

Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) reported fourth-quarter 2012
net income attributable to common stock of $743 million, $0.78 per share,
compared with $640 million, $0.67 per share, for fourth-quarter 2011.
Fourth-quarter 2012 net income included a net credit of $40 million ($0.04 per
share) associated with adjustments to environmental obligations and related
litigation reserves and a gain for insurance recoveries, partly offset by
charges for labor agreement costs at Candelaria and for costs associated with
the PXP and MMR transactions. Fourth-quarter 2011 net income included a net
charge of $73 million ($0.08 per share) associated with adjustments to
environmental obligations and related litigation reserves and bonuses for new
labor agreements and other employee costs at PT Freeport Indonesia, Cerro
Verde and El Abra. For the year 2012, FCX reported net income attributable to
common stock of $3.0 billion, $3.19 per share, compared with $4.6 billion,
$4.78 per share, for the year 2011.

James R. Moffett, Chairman of the Board, and Richard C. Adkerson, President
and Chief Executive Officer said, "Our global team continues to achieve strong
and safe production while aggressively managing costs and executing on
financially attractive projects to grow our copper production from 3.66
billion pounds in 2012 to over 5 billion pounds per annum in 2015.We are
positive about the long-term outlook for our business, the markets we serve
and the opportunities that the pending oil and gas acquisitions will provide.
We are focused on executing our strategy of developing long-term resources in
a cost effective and financially attractive manner to generate long-term value
for shareholders."

SUMMARY FINANCIAL AND OPERATING DATA

                                                        
                     Three Months Ended                      Years Ended
                     December 31,                            December 31,
                    2012                2011              2012                     2011
Financial Data
(in millions,
except per share
amounts)
Revenues^a           $ 4,513               $ 4,162           $ 18,010                   $ 20,880
Operating income     $ 1,358  ^b,c,d,e     $ 1,297  ^b,d     $ 5,814   ^b,c,d,e         $ 9,140   ^b,d
Net income
attributable to      $ 743    ^b,c,d,e     $ 640    ^b,d     $ 3,041   ^b,c,d,e,g,h     $ 4,560   ^b,d,g,h
common stock^f
Diluted net
income per share     $ 0.78   ^b,c,d,e     $ 0.67   ^b,d     $ 3.19    ^b,c,d,e,g,h     $ 4.78    ^b,d,g,h
of common stock
Diluted
weighted-average
common
shares               954                   953               954                        955
outstanding
Operating cash       $ 1,265               $ 746             $ 3,774                    $ 6,620
flows^i
Capital              $ 976                 $ 785             $ 3,494                    $ 2,534
expenditures
                                                                                                  
Mining Operating
Data
Copper (millions
of recoverable
pounds)
Production           1,005                 823               3,663                      3,691
Sales, excluding     972                   823               3,648                      3,698
purchases
Average realized     $ 3.60                $ 3.42            $ 3.60                     $ 3.86
price per pound
Site production
and delivery         $ 2.01                $ 1.96            $ 2.00                     $ 1.72
costs per
pound^j
Unit net cash
costs per            $ 1.54                $ 1.57            $ 1.48                     $ 1.01
pound^j
Gold (thousands
of recoverable
ounces)
Production           251                   181               958                        1,383
Sales, excluding     254                   133               1,010                      1,378
purchases
Average realized     $ 1,681               $ 1,656           $ 1,665                    $ 1,583
price per ounce
Molybdenum
(millions of
recoverable
pounds)
Production           24                    18                85                         83
Sales, excluding     21                    19                83                         79
purchases
Average realized     $ 12.62               $ 15.08           $ 14.26                    $ 16.98
price per pound

a. Includes the impact of adjustments to provisionally priced sales recognized
in prior periods (refer to the "Consolidated Statements of Income" on page IV
for further discussion).

b. Includes net (credits) charges for adjustments to environmental obligations
and related litigation reserves totaling $(42) million ($(24) million to net
income attributable to common stockholders or $(0.03) per share) for
fourth-quarter 2012, $29 million ($23 million to net income attributable to
common stockholders or $0.02 per share) for fourth-quarter 2011, $(62) million
($(40) million to net income attributable to common stockholders or $(0.04)
per share) for the year 2012 and $107 million ($86 million to net income
attributable to common stockholders or $0.09 per share) for the year 2011.

c. The 2012 periods include a gain of $59 million ($31 million to net income
attributable to common stockholders or $0.03 per share) for the settlement of
the insurance claim for business interruption and property damage relating to
the 2011 incidents affecting PT Freeport Indonesia's concentrate pipelines.

d. The 2012 periods include a charge of $16 million ($8 million to net income
attributable to common stockholders or $0.01 per share) associated with labor
agreement costs at Candelaria. The 2011 periods include charges totaling $116
million ($50 million to net income attributable to common stockholders or
$0.05 per share) primarily associated with bonuses for new labor agreements
and other employee costs at PT Freeport Indonesia, Cerro Verde and El Abra.

e. The 2012 periods include charges of $9 million ($7 million to net income
attributable to common stockholders or $0.01 per share) for costs associated
with the PXP and MMR transactions.

f. FCX defers recognizing profits on intercompany sales until final sales to
third parties occur (refer to the "Consolidated Statements of Income" on page
IV for a summary of net impacts from changes in these deferrals).

g. Includes net losses on early extinguishment of debt totaling $149 million
($0.16 per share) for the year 2012, and $60 million ($0.06 per share) for the
year 2011.

h. The year 2012 includes a net credit of $98 million, net of noncontrolling
interests ($0.11 per share) associated with adjustments to Cerro Verde's
deferred income taxes. The year 2011 includes a charge of $49 million, net of
noncontrolling interests ($0.05 per share) for additional taxes associated
with Cerro Verde's election to pay a special mining burden during the
remaining term of its current stability agreement. For further discussion
refer to the supplemental schedule, "Provision for Income Taxes," on page
XXVI, which is also available on FCX's website, "www.fcx.com."

i. Includes net working capital sources (uses) and other tax payments of $122
million for fourth-quarter 2012, $(335) million for fourth-quarter 2011,
$(1.4) billion for the year 2012 and $(461) million for the year 2011.

j. Reflects per pound weighted-average site production and delivery costs and
unit net cash costs (net of by-product credits) for all copper mines,
excluding net noncash and other costs. For reconciliations of per pound unit
costs by operating division to production and delivery costs applicable to
sales reported in FCX's consolidated financial statements, refer to the
supplemental schedule, “Product Revenues and Production Costs,” beginning on
page VII, which is also available on FCX's website, “www.fcx.com.”

OPERATIONS

Consolidated. Fourth-quarter 2012 consolidated copper sales of 972 million
pounds were higher than the October 2012 estimates of 930 million pounds,
primarily reflecting higher production in North and South America.
Fourth-quarter 2012 consolidated sales of 254 thousand ounces of gold and 21
million pounds of molybdenum approximated the October 2012 estimates of 255
thousand ounces of gold and 20 million pounds of molybdenum. Fourth-quarter
2012 consolidated copper and gold sales were higher than fourth-quarter 2011
sales of 823 million pounds of copper and 133 thousand ounces of gold
primarily reflecting the impact of PT Freeport Indonesia labor disruptions in
fourth-quarter 2011. Operations and productivity have improved in 2012 at PT
Freeport Indonesia.

Consolidated sales from mines for the year 2013 are expected to approximate
4.3 billion pounds of copper, 1.4 million ounces of gold and 90 million pounds
of molybdenum, including 940 million pounds of copper, 230 thousand ounces of
gold and 23 million pounds of molybdenum in first-quarter 2013. Projected
copper sales for 2013 are expected be 18 percent higher than 2012 sales,
reflecting access to higher grade ore at PT Freeport Indonesia and in South
America and higher production in North America and Africa. Projected 2013 gold
sales are expected to be 37 percent higher than 2012, primarily reflecting
higher ore grades at Grasberg.

Consolidated average unit net cash costs (net of by-product credits) of $1.54
per pound of copper in fourth-quarter 2012 were lower than unit net cash costs
of $1.57 per pound in fourth-quarter 2011 reflecting charges in fourth-quarter
2011 associated with new labor agreements and other employee costs, partly
offset by higher fourth-quarter 2012 mining costs in North and South America.

FCX expects to gain access to higher grade ore at Grasberg in late 2013, which
will result in higher copper and gold production volumes. Approximately 29
percent of 2013 consolidated copper sales volumes and 37 percent of
consolidated gold sales volumes are expected in fourth-quarter 2013. Quarterly
unit net cash costs vary with fluctuations in sales volumes and average
realized prices for gold and molybdenum. Assuming average prices of $1,700 per
ounce of gold and $11 per pound of molybdenum and achievement of current sales
volume and cost estimates, consolidated unit net cash costs (net of by-product
credits) for FCX's copper mining operations are expected to average $1.67 per
pound of copper in first-quarter 2013 and $1.35 per pound for the year 2013.
The impact of price changes on 2013 consolidated unit net cash costs would
approximate $0.015 per pound for each $50 per ounce change in the average
price of gold and $0.015 per pound for each $2 per pound change in the average
price of molybdenum.

North America Copper Mines. FCX operates seven open-pit copper mines in North
America - Morenci, Bagdad, Safford, Sierrita and Miami in Arizona, and Tyrone
and Chino in New Mexico. All of the North America mining operations are wholly
owned, except for Morenci. FCX records its 85 percent joint venture interest
in Morenci using the proportionate consolidation method. In addition to
copper, certain of FCX's North America copper mines (Sierrita, Bagdad, Morenci
and Chino) also produce molybdenum concentrates.

Operating and Development Activities. FCX has completed projects to increase
production at its North America copper mines, including restarting certain
mining and milling operations and increasing mining rates at Morenci and
Chino. Ramp up activities at Chino are continuing, with annual production of
approximately 250 million pounds of copper targeted in 2014. FCX continues to
evaluate opportunities to invest in additional production capacity at its
North America copper mines in response to positive exploration results in
recent years.

At Morenci, FCX is engaged in a project to expand mining and milling capacity
to process additional sulfide ores identified through exploratory drilling.
The approximate $1.4 billion project is targeting incremental annual
production of approximately 225 million pounds of copper in 2014 (an
approximate 40 percent increase from 2012) through an increase in milling
rates from 50,000 metric tons of ore per day to approximately 115,000 metric
tons of ore per day and mining rates from 700,000 short tons per day to
900,000 short tons per day. Engineering activities are progressing and
construction activities are under way.

Operating Data. Following is summary consolidated operating data for the North
America copper mines for the fourth quarters and years ended 2012 and 2011:

                                                    
                               Three Months Ended        Years Ended
                               December 31,              December 31,
                              2012       2011         2012       2011
Copper (millions of
recoverable pounds)
Production                     358          341          1,363        1,258
Sales, excluding purchases     321          333          1,351        1,247
Average realized price per     $ 3.63       $ 3.44       $ 3.64       $ 3.99
pound
                                                                      
Molybdenum (millions of
recoverable pounds)
Production^a                   9            8            36           35
                                                                      
Unit net cash costs per
pound of copper:
Site production and
delivery, excluding            $ 2.00       $ 1.73       $ 1.91       $ 1.78
adjustments
By-product credits,            (0.35  )     (0.37  )     (0.36  )     (0.48  )
primarily molybdenum^b
Treatment charges              0.13        0.12        0.12        0.11   
Unit net cash costs^c          $ 1.78      $ 1.48      $ 1.67      $ 1.41 

a. Reflects molybdenum production from certain of the North America copper
mines. Sales of molybdenum are reflected in the Molybdenum division (refer to
page 9).

b. Molybdenum credits reflect volumes produced at market-based pricing.

c. For a reconciliation of unit net cash costs per pound to production and
delivery costs applicable to sales reported in FCX's consolidated financial
statements, refer to the supplemental schedule, “Product Revenues and
Production Costs,” beginning on page VII, which is also available on FCX's
website, “www.fcx.com.”

Consolidated copper sales volumes from North America of 321 million pounds in
fourth-quarter 2012 were lower than fourth-quarter 2011 sales of 333 million
pounds primarily reflecting timing of shipments.

FCX expects sales from the North America copper mines to approximate 1.45
billion pounds of copper for the year 2013, compared with 1.35 billion pounds
of copper in 2012, primarily reflecting higher production at Morenci and
Chino.

Average unit net cash costs (net of by-product credits) for the North America
copper mines of $1.78 per pound of copper in fourth-quarter 2012 were higher
than unit net cash costs of $1.48 per pound in fourth-quarter 2011, primarily
reflecting increased mining and milling activities.

FCX estimates that average unit net cash costs (net of by-product credits) for
the North America copper mines would approximate $1.82 per pound of copper for
the year 2013, based on current sales volume and cost estimates and assuming
an average molybdenum price of $11 per pound. North America's average unit net
cash costs for 2013 would change by approximately $0.04 per pound for each $2
per pound change in the average price of molybdenum. North America's average
unit net cash costs for 2013 are expected to be higher than 2012 because of
lower molybdenum credits and higher mining rates.

South America Mining. FCX operates four copper mines in South America - Cerro
Verde in Peru and El Abra, Candelaria and Ojos del Salado in Chile. FCX owns a
53.56 percent interest in Cerro Verde, a 51 percent interest in El Abra, and
an 80 percent interest in both the Candelaria and Ojos del Salado mining
complexes. All operations in South America are consolidated in FCX's financial
statements. South America mining includes open-pit and underground mining. In
addition to copper, the Cerro Verde mine produces molybdenum concentrates, and
the Candelaria and Ojos del Salado mines produce gold and silver.

Operating and Development Activities. At Cerro Verde, FCX is engaged in a
large-scale expansion. The approximate $4.4 billion project would expand the
concentrator facilities from 120,000 metric tons of ore per day to 360,000
metric tons of ore per day and provide incremental annual production of
approximately 600 million pounds of copper and 15 million pounds of molybdenum
beginning in 2016. Cerro Verde received approval of the environmental impact
assessment in fourth-quarter 2012. Detailed engineering and long-lead item
procurement are under way, and construction is expected to commence in 2013.

FCX is also engaged in pre-feasibility studies for a potential large-scale
milling operation at El Abra to process additional sulfide material and to
achieve higher recoveries. Exploration results at El Abra have identified a
significant sulfide resource.

Operating Data. Following is summary consolidated operating data for the South
America mining operations for the fourth quarters and years ended 2012 and
2011:

                                              
                 Three Months Ended                Years Ended
                 December 31,                      December 31,
                2012           2011             2012           2011
Copper
(millions of
recoverable
pounds)
Production       349              337              1,257            1,306
Sales            350              357              1,245            1,322
Average
realized         $ 3.60           $ 3.45           $ 3.58           $ 3.77
price per
pound
                                                                              
Gold
(thousands
of
recoverable
ounces)
Production       26               28               83               101
Sales            26               29               82               101
Average
realized         $ 1,686          $ 1,626          $ 1,673          $ 1,580
price per
ounce
                                                                              
Molybdenum
(millions of
recoverable
pounds)
Production^a     2                2                8                10
                                                                              
Unit net
cash costs
per pound of
copper:
Site
production
and              $ 1.67    ^b     $ 1.56    ^b     $ 1.60    ^b     $ 1.38    ^b
delivery,
excluding
adjustments
By-product       (0.29   )        (0.27   )        (0.26   )        (0.35   )
credits
Treatment        0.16            0.15            0.16            0.17    
charges
Unit net         $ 1.54          $ 1.44          $ 1.50          $ 1.20  
cash costs^c

a. Reflects molybdenum production from Cerro Verde. Sales of molybdenum are
reflected in the Molybdenum division (refer to page 9).

b. The 2012 periods include $16 million ($0.04 per pound of copper for
fourth-quarter 2012 and $0.01 per pound for the year 2012) associated with
labor agreement costs at Candelaria. The 2011 periods include $50 million
($0.14 per pound of copper for fourth-quarter 2011 and $0.04 per pound for the
year 2011) associated with bonuses paid at Cerro Verde and El Abra pursuant to
the new labor agreements.

c. For a reconciliation of unit net cash costs per pound to production and
delivery costs applicable to sales reported in FCX's consolidated financial
statements, refer to the supplemental schedule, “Product Revenues and
Production Costs,” beginning on page VII, which is also available on FCX's
website, “www.fcx.com.”

Copper sales from South America mining totaled 350 million pounds in
fourth-quarter 2012 and 357 million pounds in fourth-quarter 2011.

FCX expects South America's sales to approximate 1.33 billion pounds of copper
and 140 thousand ounces of gold for the year 2013, compared with 2012 sales of
1.25 billion pounds of copper and 82 thousand ounces of gold, primarily
reflecting the mining of higher grade ore at Candelaria.

Average unit net cash costs (net of by-product credits) for South America of
$1.54 per pound of copper in fourth-quarter 2012 were higher than unit net
cash costs of $1.44 per pound in fourth-quarter 2011, primarily reflecting
higher mining and input costs (including energy), partly offset by lower costs
relating to labor agreements.

FCX estimates that average unit net cash costs (net of by-product credits) for
South America mining would approximate $1.50 per pound of copper for the year
2013, based on current sales volume and cost estimates and assuming average
prices of $1,700 per ounce of gold and $11 per pound of molybdenum.

Indonesia Mining. Through its 90.64 percent owned and wholly consolidated
subsidiary PT Freeport Indonesia, FCX operates the world's largest copper and
gold mine in terms of reserves at its Grasberg operations in Papua, Indonesia.
PT Freeport Indonesia produces copper concentrates, which contain significant
quantities of gold and also silver.

Operating and Development Activities. FCX has several projects in progress in
the Grasberg minerals district, primarily related to the development of
large-scale, high-grade underground ore bodies. In aggregate, these
underground ore bodies are expected to ramp up over several years to
approximately 240,000 metric tons of ore per day following the currently
anticipated transition from the Grasberg open pit in 2016. Development of the
Grasberg Block Cave and Deep Mill Level Zone (DMLZ) is advancing. The DMLZ is
expected to commence production in 2015, and the Grasberg Block Cave mine is
scheduled to commence production in 2017. Over the next five years, estimated
aggregate capital spending on these projects is currently expected to average
$715 million per year ($565 million per year net to PT Freeport Indonesia).

Production from the Deep Ore Zone (DOZ) underground mine averaged 51,200
metric tons of ore per day in fourth-quarter 2012, and is expected to ramp up
to the design rate of 80,000 metric tons of ore per day by year-end 2013,
following completion of ongoing panel repairs.

The high-grade Big Gossan underground mine, which began producing in
fourth-quarter 2010, averaged 2,100 metric tons of ore per day in
fourth-quarter 2012. Full rates of 7,000 metric tons of ore per day are
expected in 2014.

Operating Data. Following is summary consolidated operating data for the
Indonesia mining operations for the fourth quarters and years ended 2012 and
2011:

                                             
                   Three Months Ended             Years Ended
                   December 31,                   December 31,
                  2012        2011             2012         2011
Copper
(millions of
recoverable
pounds)
Production         200           68               695             846
Sales              204           50               716             846
Average
realized price     $ 3.59        $ 3.31           $ 3.58          $ 3.85
per pound
                                                                            
Gold
(thousands of
recoverable
ounces)
Production         221           149              862             1,272
Sales              224           102              915             1,270
Average
realized price     $ 1,680       $ 1,664          $ 1,664         $ 1,583
per ounce
                                                                            
Unit net cash
costs per
pound of
copper:
Site
production and
delivery,          $ 2.91        $ 6.92    ^a     $ 3.12          $ 2.21    ^a
excluding
adjustments
Gold and           (1.93   )     (3.72   )        (2.22   )       (2.47   )
silver credits
Treatment          0.22          0.22             0.21            0.19
charges
Royalty on         0.13         0.15            0.13           0.16    
metals
Unit net cash      $ 1.33       $ 3.57          $ 1.24         $ 0.09  
costs^b

a. The 2011 periods include $66 million ($1.30 per pound of copper for
fourth-quarter 2011 and $0.08 per pound for the year 2011) associated with
bonuses and other strike-related costs.

b. For a reconciliation of unit net cash costs per pound to production and
delivery costs applicable to sales reported in FCX's consolidated financial
statements, refer to the supplemental schedule, “Product Revenues and
Production Costs,” beginning on page VII, which is also available on FCX's
website, “www.fcx.com.”

Indonesia's fourth-quarter 2012 sales of 204 million pounds of copper and 224
thousand ounces of gold were higher than fourth-quarter 2011 sales of 50
million pounds of copper and 102 thousand ounces of gold, primarily reflecting
the impact in fourth-quarter 2011 of labor related disruptions and temporary
suspension of milling operations.

At the Grasberg mine, the sequencing of mining areas with varying ore grades
causes fluctuations in the timing of ore production resulting in varying
quarterly and annual sales of copper and gold. FCX expects sales from
Indonesia to approximate 1.1 billion pounds of copper and 1.2 million ounces
of gold for the year 2013, compared with 716 million pounds of copper and 915
thousand ounces of gold for the year 2012. FCX expects sales from Indonesia to
increase in fourth-quarter 2013 as PT Freeport Indonesia gains access to
higher ore grades and achieves the targeted ramp up in production from the DOZ
mine. Approximately 33 percent of Indonesia's projected copper sales and 38
percent of projected gold sales are expected in fourth-quarter 2013.

Indonesia's unit net cash costs (including gold and silver credits) of $1.33
per pound of copper in fourth-quarter 2012 were lower than unit net cash costs
of $3.57 per pound in fourth-quarter 2011 primarily reflecting higher sales
volumes. Fourth-quarter 2011 costs also included $66 million, or $1.30 per
pound of copper, for bonuses and other strike-related costs.

FCX estimates Indonesia's unit net cash costs (net of gold and silver credits)
would approximate $0.68 per pound of copper for the year 2013, based on
current sales volume and cost estimates and assuming an average gold price of
$1,700 per ounce. Indonesia's unit net cash costs for 2013 would change by
approximately $0.055 per pound for each $50 per ounce change in the average
price of gold. Because of the fixed nature of a large portion of Indonesia's
costs, unit costs vary from quarter to quarter depending on copper and gold
sales volumes, as well as average realized gold prices for the quarterly
period. Indonesia's unit net cash costs for first-quarter 2013 are expected to
approximate $1.57 per pound of copper and are expected to decline in future
quarterly periods as volumes increase.

Africa Mining. Through its 56 percent owned and wholly consolidated subsidiary
Tenke Fungurume Mining S.A.R.L (TFM), FCX operates the Tenke Fungurume (Tenke)
mine in the Katanga province of the Democratic Republic of Congo (DRC). In
addition to copper, the Tenke mine produces cobalt hydroxide.

Operating and Development Activities. An expansion of the project to optimize
the current plant and increase capacity is substantially complete. The
expanded mill will be capable of throughput of 14,000 metric tons of ore per
day, and expanded processing facilities will enable the addition of
approximately 150 million pounds of copper per year. The approximate $850
million project, which included mill upgrades, additional mining equipment, a
new tankhouse and a new sulphuric acid plant, is being completed within
budget. The addition of a second sulphuric acid plant is expected to be
completed in 2015.

FCX continues to engage in drilling activities, exploration analyses and
metallurgical testing to evaluate the potential of the highly prospective
minerals district at Tenke. These analyses are being incorporated in future
plans to evaluate opportunities for expansion. Future expansions are subject
to a number of factors, including economic and market conditions, and the
business and investment climate in the DRC.

On January 21, 2013, FCX,through a newly formed joint venture entered into a
definitive agreement with OM Group, Inc. to acquire a large scale cobalt
chemical refinery located in Kokkola, Finland, and the related sales and
marketing business. The acquisition would provide direct end-market access for
the cobalt hydroxide production at Tenke.FCX will be the operator of the
joint venture with an effective 56 percent ownership interest, with the
remaining effective ownership interests held by its partners in TFM, including
24 percentby Lundin Mining Corporation and 20 percent by La Générale des
Carrières et des Mines (Gécamines).Under the terms of the agreement, initial
consideration of $325 million (subject to working capital adjustments) will be
paid at closing, with the potential for additional consideration of up to $110
million over a period of three years, contingent upon the achievement of
revenue-based performance targets.The acquisition is subject to customary
closing conditions, including required regulatory approvals,and is expected
to close in second-quarter 2013.

Operating Data. Following is summary consolidated operating data for the
Africa mining operations for the fourth quarters and years ended 2012 and
2011:

                                                    
                               Three Months Ended        Years Ended
                               December 31,              December 31,
                              2012       2011         2012       2011
Copper (millions of
recoverable pounds)
Production                     98           77           348          281
Sales                          97           83           336          283
Average realized price per     $ 3.50       $ 3.32       $ 3.51       $ 3.74
pound^a
                                                                      
Cobalt (millions of
contained pounds)
Production                     6            7            26           25
Sales                          6            6            25           25
Average realized price per     $ 6.95       $ 8.78       $ 7.83       $ 9.99
pound
                                                                      
Unit net cash costs per
pound of copper:
Site production and
delivery, excluding            $ 1.38       $ 1.58       $ 1.49       $ 1.57
adjustments
Cobalt credits^b               (0.21  )     (0.35  )     (0.33  )     (0.58  )
Royalty on metals              0.07        0.07        0.07        0.08   
Unit net cash costs^c          $ 1.24      $ 1.30      $ 1.23      $ 1.07 

a. Includes point-of-sale transportation costs as negotiated in customer
contracts.

b. Net of cobalt downstream processing and freight costs.

c. For a reconciliation of unit net cash costs per pound to production and
delivery costs applicable to sales reported in FCX's consolidated financial
statements, refer to the supplemental schedule, “Product Revenues and
Production Costs,” beginning on page VII, which is also available on FCX's
website, “www.fcx.com.”

During 2012, Tenke achieved record mining, milling and production rates.
Copper sales from Africa of 97 million pounds in fourth-quarter 2012 were
higher than fourth-quarter 2011 copper sales of 83 million pounds primarily
reflecting higher mining and milling rates principally related to the ramp-up
of the second phase expansion.

FCX expects Africa's sales to approximate 410 million pounds of copper and 30
million pounds of cobalt for the year 2013, compared with 336 million pounds
of copper and 25 million pounds of cobalt for the year 2012.

Africa's unit net cash costs (net of cobalt credits) of $1.24 per pound of
copper were lower than unit net cash costs of $1.30 per pound in
fourth-quarter 2011 primarily reflecting higher volumes, partly offset by
higher mining costs and lower cobalt credits.

FCX estimates Africa's unit net cash costs would approximate $1.03 per pound
of copper for the year 2013, based on current sales volume and cost estimates
and assuming an average cobalt price of $12 per pound. Africa's unit net cash
costs for 2013 would change by approximately $0.09 per pound for each $2 per
pound change in the average price of cobalt.

Molybdenum. FCX is the world's largest producer of molybdenum. FCX conducts
molybdenum mining operations at its wholly owned Henderson underground mine
and Climax open-pit mine in Colorado, and also sells molybdenum produced from
its North and South America copper mines.

Operating and Development Activities. The Climax molybdenum mine, which was
commissioned in second-quarter 2012, includes a new 25,000 metric ton per day
mill facility. Production in fourth-quarter 2012 totaled 5 million pounds of
molybdenum and is targeted at 20 million pounds for 2013, with potential to
produce 30 million pounds per year, depending on market conditions. FCX
intends to operate the Climax and Henderson mines in a flexible manner to meet
market requirements. FCX believes that Climax is one of the most attractive
primary molybdenum mines in the world, with large-scale production capacity,
attractive cash costs and future growth options.

Operating Data. Following is summary consolidated operating data for the
Molybdenum operations for the fourth quarters and years ended 2012 and 2011:

                                                  
                          Three Months Ended           Years Ended
                          December 31,                 December 31,
                         2012          2011         2012          2011
Molybdenum (millions
of recoverable
pounds)
Production                13       ^a     8            41       ^a     38
Sales, excluding          21              19           83              79
purchases^b
Average realized          $ 12.62         $ 15.08      $ 14.26         $ 16.98
price per pound
                                                                       
Unit net cash cost
per pound of              $ 7.53          $ 6.87       $ 7.07          $ 6.34
molybdenum^c

a. Molybdenum production from the Climax mine totaled 5 million pounds in
fourth-quarter 2012 and 7 million pounds for the year 2012 reflecting
production since the start of commercial operations in May 2012. The 2011
periods reflect production only from the Henderson molybdenum mine.

b. Includes sales of molybdenum produced at the North and South America copper
mines.

c. Reflects unit net cash costs for the Henderson molybdenum mine, excluding
net noncash and other costs. For a reconciliation of unit net cash costs per
pound to production and delivery costs applicable to sales reported in FCX's
consolidated financial statements, refer to the supplemental schedule,
“Product Revenues and Production Costs,” beginning on page VII, which is also
available on FCX's website, “www.fcx.com.”

For the year 2013, FCX expects molybdenum sales to approximate 90 million
pounds (including production of approximately 40 million pounds from the North
and South America copper mines), compared with 83 million pounds in 2012
(including production of 44 million pounds from the North and South America
copper mines).

Unit net cash costs at the Henderson mine of $7.53 per pound of molybdenum in
fourth-quarter 2012 were higher than unit net cash costs of $6.87 per pound in
fourth-quarter 2011, primarily reflecting lower production volumes and higher
input costs.

Based on current sales volume and cost estimates, FCX expects unit net cash
costs for primary molybdenum mines to average $7.00 per pound of molybdenum
for the year 2013 (reflecting approximately $7.50 per pound for Henderson and
$6.50 per pound for Climax).

PRELIMINARY RECOVERABLE PROVEN AND PROBABLE RESERVES

FCX has significant reserves, resources and future development opportunities
within its portfolio of assets. FCX's preliminary estimated consolidated
recoverable proven and probable reserves at December31, 2012, include 116.5
billion pounds of copper, 32.5 million ounces of gold and 3.42 billion pounds
of molybdenum, which were determined using long-term average prices of $2.00
per pound for copper, $750 per ounce for gold and $10.00 per pound for
molybdenum, consistent with the long-term average prices used at year-end
2011. The preliminary recoverable proven and probable reserves presented in
the table below represent the estimated metal quantities from which FCX
expects to be paid after application of estimated metallurgical recovery rates
and smelter recovery rates, where applicable. Recoverable reserves are that
part of a mineral deposit, which FCX estimates can be economically and legally
extracted or produced at the time of the reserve determination.

                          
                                   Preliminary Recoverable Proven and Probable
                                   Reserves
                                   at December 31, 2012
                                   Copper       Gold         Molybdenum
                                   (billions       (millions       (billions
                                   of lbs)         of ozs)         of lbs)
            North America          38.8            0.4             2.69
            South America          38.8            1.2             0.73
            Indonesia              31.0            30.9            —
            Africa                 7.9            —              —
            Consolidated           116.5          32.5           3.42
            basis^a
                                                                   
            Net equity             93.2           29.4           3.08
            interest^b

a. Consolidated basis reserves represent estimated metal quantities after
reduction for joint venture partner interests at the Morenci mine in North
America and the Grasberg minerals district in Indonesia. Excluded from the
table above are FCX's estimated recoverable proven and probable reserves of
0.84 billion pounds for cobalt at Tenke Fungurume and 321.4 million ounces for
silver in Indonesia, South America and North America.

b. Net equity interest reserves represent estimated consolidated basis metal
quantities further reduced for noncontrolling interest ownership. Excluded
from the table above are FCX's estimated recoverable proven and probable
reserves totaling 0.47 billion pounds for cobalt at Tenke Fungurume and 264.2
million ounces for silver in Indonesia, South America and North America.

The following table summarizes changes in FCX's estimated consolidated
recoverable proven and probable copper, gold and molybdenum reserves during
2012:

                                                        
                               Copper             Gold            Molybdenum
                               (billions of       (millions       (billions of
                               lbs)               of ozs)         lbs)
Reserves at December 31,       119.7              33.9            3.42
2011
Net additions/revisions        0.5                (0.4   )        0.08
Production                     (3.7     )         (1.0   )        (0.08    )
Reserves at December 31,       116.5             32.5           3.42     
2012
                                                                           

At December31, 2012, in addition to preliminary consolidated recoverable
proven and probable reserves, FCX's preliminary estimated mineralized material
(assessed using a long-term average copper price of $2.20 per pound for
copper) totals 113 billion pounds of incremental contained copper. FCX
continues to pursue aggressively opportunities to convert this mineralized
material into reserves, future production volumes and cash flow.

EXPLORATION ACTIVITIES

FCX is actively conducting exploration activities near its existing mines with
a focus on opportunities to expand reserves that will support the development
of additional future production capacity in the large minerals districts where
it currently operates. Favorable exploration results indicate opportunities
for significant future potential reserve additions in North and South America
and in the Tenke Fungurume minerals district. The drilling data in North
America continue to indicate the potential for expanded sulfide production.

Exploration spending for the year 2013 is expected to approximate $235
million, compared with $251 million in 2012. Exploration activities will
continue to focus primarily on the potential for future reserve additions in
FCX's existing minerals districts. Approximately one third of the 2013 budget
is associated with greenfield exploration projects.

PROVISIONAL PRICING AND OTHER

For the year 2012, 46 percent of FCX's mined copper was sold in concentrate,
28 percent as cathode and 26 percent as rod from North America operations.
Under the long-established structure of sales agreements prevalent in the
industry, copper contained in concentrate and cathode is provisionally priced
at the time of shipment. The provisional prices are finalized in a
contractually specified future month (generally one to four months from the
shipment date) primarily based on quoted monthly average spot copper prices on
the London Metal Exchange (LME). Because a significant portion of FCX's
concentrate and cathode sales in any quarterly period usually remain subject
to final pricing, the quarter-end forward price is a major determinant of
recorded revenues and the average recorded copper price for the period. During
fourth-quarter 2012, LME spot copper prices averaged $3.59 per pound, compared
to FCX's recorded average price of $3.60 per pound.

At September30, 2012, FCX had provisionally priced copper sales at its copper
mining operations, primarily South America and Indonesia, totaling 325 million
pounds (net of intercompany sales and noncontrolling interests) recorded at an
average of $3.72 per pound. Lower prices resulted in adjustments to these
provisionally priced copper sales that unfavorably impacted fourth-quarter
2012 consolidated revenues by $73 million ($31 million to net income
attributable to common stock or $0.03 per share), compared with adjustments to
the September30, 2011, provisionally priced copper sales that favorably
impacted fourth-quarter 2011 consolidated revenues by $125 million ($56
million to net income attributable to common stock or $0.06 per share).

Adjustments to the December31, 2011, provisionally priced copper sales
favorably impacted consolidated revenues by $101 million ($43 million to net
income attributable to common stock or $0.05 per share) for the year 2012,
compared with adjustments to the December31, 2010, provisionally priced
copper sales that unfavorably impacted consolidated revenues by $12 million
($5 million to net income attributable to common stock or $0.01 per share) for
the year 2011.

At December31, 2012, FCX had provisionally priced copper sales at its copper
mining operations, primarily South America and Indonesia, totaling 341 million
pounds of copper (net of intercompany sales and noncontrolling interests)
recorded at an average of $3.59 per pound, subject to final pricing over the
next several months. FCX estimates that each $0.05 change in the price
realized from the December31, 2012, provisional price recorded would have an
approximate $11 million effect on 2013 net income attributable to common
stock. The LME spot copper price closed at $3.64 per pound on January21,
2013.

FCX defers recognizing profits on its sales from its mining operations to
Atlantic Copper and on 25 percent of Indonesia's sales to PT Smelting (PT
Freeport Indonesia's 25 percent-owned Indonesian smelting unit) until final
sales to third parties occur. FCX's net deferred profits on its Indonesia and
South America concentrate inventories at Atlantic Copper and PT Smelting to be
recognized in future periods' net income attributable to common stock totaled
$121 million at December31, 2012. Refer to the "Consolidated Statements of
Income" on page IV for a summary of net impacts from changes in these
deferrals. Quarterly variations in ore grades, the timing of intercompany
shipments and changes in product prices will result in variability in FCX's
net deferred profits and quarterly earnings.

CASH FLOWS

FCX generated operating cash flows of $1.3 billion for fourth-quarter 2012
(including net working capital sources and other tax payments of $122 million)
and $3.8 billion for the year 2012 (net of working capital uses and other tax
payments of $1.4 billion).

Based on current sales volume and cost estimates and assuming average prices
of $3.65 per pound of copper, $1,700 per ounce of gold and $11 per pound of
molybdenum, FCX's consolidated operating cash flows, excluding results from
pending acquisitions, are estimated to approximate $7 billion for the year
2013 (including $450 million from net working capital sources and other tax
payments). The impact of price changes on operating cash flows would
approximate $350 million for each $0.10 per pound change in the average price
of copper, $55 million for each $50 per ounce change in the average price of
gold and $110 million for each $2 per pound change in the average price of
molybdenum.

Capital expenditures totaled $976 million for fourth-quarter 2012 and $3.5
billion for the year 2012. Excluding amounts for pending acquisitions, capital
expenditures are currently estimated to approximate $4.6 billion for the year
2013 (including $2.8 billion for major projects and $1.8 billion for
sustaining capital). Major projects for 2013 primarily include underground
development activities at Grasberg and the expansion projects at Cerro Verde
and Morenci. FCX is also considering additional investments at several of its
sites. Capital spending plans will continue to be reviewed and adjusted in
response to changes in market conditions and other factors.

CASH AND DEBT

At December31, 2012, FCX had consolidated cash of $3.7 billion. Net of
noncontrolling interests' share, taxes and other costs, cash available to the
parent company totaled $2.7 billion as shown below (in billions):

                                                
                                                     December 31,
                                                     2012
Cash at domestic companies^a                         $   1.3
Cash at international operations                     2.4       
Total consolidated cash and cash equivalents         3.7
Less: Noncontrolling interests' share                (0.8      )
Cash, net of noncontrolling interests' share         2.9
Less: Withholding taxes and other                    (0.2      )
Net cash available                                   $   2.7   

a. Includes cash at the parent company and North America operations.

At December31, 2012, FCX had $3.5 billion in debt. FCX had no borrowings and
$43 million of letters of credit issued under its revolving credit facility
resulting in total availability of $1.5 billion at December31, 2012.

FINANCIAL POLICY

FCX has a long-standing tradition of seeking to build shareholder value
through investing in projects with attractive rates of return and returning
cash to shareholders through common stock dividends and share purchases. FCX
paid common stock dividends of $1.1 billion during 2012. FCX's current annual
dividend rate for its common stock is $1.25 per share. On December 26, 2012,
FCX's Board of Directors (the Board) declared a regular quarterly dividend of
$0.3125 per share, which will be paid on February 1, 2013. FCX intends to
continue to maintain a strong financial position, invest in financially
attractive growth projects and provide cash returns to shareholders. The Board
will continue to review FCX's financial policy on an ongoing basis.

PENDING ACQUISITIONS of PLAINS EXPLORATION & PRODUCTION COMPANY (PXP) AND
McMoRAN EXPLORATION CO. (MMR)

On December 5, 2012, FCX announced definitive agreements to acquire PXP and
MMR. PXP per-share consideration is equivalent to 0.6531 shares of FCX common
stock and $25.00 in cash (approximately $3.4 billion in cash and 91 million
shares of FCX common stock). MMR per-share consideration consists of $14.75 in
cash (approximately $3.4 billion in cash, or $2.1 billion net of MMR interests
currently owned by FCX and PXP) and 1.15 units of a royalty trust, which will
hold a five percent overriding royalty interest in future production from
MMR's existing ultra-deep exploration prospects. The value of the
transactions, including assumed debt of the targets, approximates $20 billion.

The combined company would be a premier U.S.-based natural resource company
with a growing production profile and an industry leading global portfolio of
mineral assets and significant oil and gas resources. The addition of a high
quality, U.S.-focused oil and gas resource base is expected to provide strong
margins and cash flows, exploration leverage and financially attractive
long-term investment opportunities to enhance long-term returns for FCX
shareholders. After giving effect to the transactions, FCX's estimated pro
forma total debt would have approximated $20 billion (or $16 billion net of
cash) at September 30, 2012, and total pro forma outstanding FCX common shares
would have approximated 1.04 billion. On a pro forma basis for 2013, the
combined company's estimated EBITDA (equal to operating income plus
depreciation, depletion, and amortization) is expected to approximate $12
billion (approximately 74 percent from mining and 26 percent from oil and gas,
with 48 percent of combined EBITDA from U.S. operations).

Completion of the transactions is subject to receipt of PXP and MMR
shareholder approval, regulatory approvals (including U.S. antitrust clearance
under the Hart-Scott-Rodino Act), and other customary conditions. On December
26, 2012, the U.S. Federal Trade Commission granted early termination of the
Hart-Scott-Rodino waiting period with respect to both transactions.PXP and
MMR shareholder meetings to approve the transactions will be scheduled upon
the effectiveness of the registration statements filed with the U.S.
Securities and Exchange Commission on December 28, 2012. The transactions are
expected to close in second-quarter 2013.

WEBCAST INFORMATION

A conference call with securities analysts to discuss FCX's fourth-quarter
2012 results is scheduled for today at 10:00 a.m. Eastern Time. The conference
call will be broadcast on the Internet along with slides. Interested parties
may listen to the conference call live and view the slides by accessing
“www.fcx.com.” A replay of the webcast will be available through Friday,
February22, 2013.

                    --------------------------------------

FCX is a leading international mining company with headquarters in Phoenix,
Arizona. FCX operates large, long-lived, geographically diverse assets with
significant proven and probable reserves of copper, gold and molybdenum. FCX
has a dynamic portfolio of operating, expansion and growth projects in the
copper industry and is the world's largest producer of molybdenum.

FCX's portfolio of assets includes the Grasberg minerals district in
Indonesia, the world’s largest copper and gold mine in terms of recoverable
reserves; significant mining operations in the Americas, including the
large-scale Morenci minerals district in North America and the Cerro Verde and
El Abra operations in South America; and the Tenke Fungurume minerals district
in the DRC. Additional information about FCX is available on FCX's website at
"www.fcx.com."

Cautionary Statement and Regulation G Disclosure: This press release contains
forward-looking statements in which FCX discusses its potential future
performance. Forward-looking statements are all statements other than
statements of historical facts, such as those statements regarding projected
ore grades and milling rates, projected production and sales volumes,
projected unit net cash costs, projected operating cash flows, projected
capital expenditures, exploration efforts and results, mine production and
development plans, the impact of deferred intercompany profits on earnings,
liquidity, other financial commitments and tax rates, the impact of copper,
gold, molybdenum and cobalt price changes, reserve estimates, future dividend
payments and potential share purchases, and estimated EBITDA for 2013 assuming
completion of the pending acquisitions. The words “anticipates,” “may,” “can,”
“plans,” “believes,” “estimates,” “expects,” “projects,” “intends,” “likely,”
“will,” “should,” “to be,” and any similar expressions are intended to
identify those assertions as forward-looking statements. The declaration of
dividends is at the discretion of FCX's Board and will depend on FCX's
financial results, cash requirements, future prospects, and other factors
deemed relevant by the Board.

This press release also includes forward-looking statements regarding
mineralized material not included in reserves. The mineralized material
described in this press release will not qualify as reserves until
comprehensive engineering studies establish their economic feasibility.
Accordingly, no assurance can be given that the estimated mineralized material
not included in reserves will become proven and probable reserves.

FCX cautions readers that forward-looking statements are not guarantees of
future performance and its actual results may differ materially from those
anticipated, projected or assumed in the forward-looking statements. Important
factors that can cause FCX's actual results to differ materially from those
anticipated in the forward-looking statements include commodity prices, mine
sequencing, production rates, industry risks, regulatory changes, political
risks, the outcome of ongoing discussions with the Indonesian government, the
potential effects of violence in Indonesia, the resolution of administrative
disputes in the Democratic Republic of Congo, weather- and climate-related
risks, labor relations, environmental risks, litigation results, currency
translation risks, risks associated with completion of the pending
acquisitions, and other factors described in more detail under the heading
“Risk Factors” in FCX's Annual Report on Form 10-K for the year ended
December31, 2011, filed with the U.S. Securities and Exchange Commission
(SEC) as updated by our subsequent filings with the SEC.

Investors are cautioned that many of the assumptions on which FCX's
forward-looking statements are based are likely to change after its
forward-looking statements are made, including for example commodity prices,
which FCX cannot control, and production volumes and costs, some aspects of
which FCX may or may not be able to control. Further, FCX may make changes to
its business plans that could or will affect its results. FCX cautions
investors that it does not intend to update forward-looking statements more
frequently than quarterly notwithstanding any changes in FCX's assumptions,
changes in business plans, actual experience or other changes, and FCX
undertakes no obligation to update any forward-looking statements.

This press release also contains certain financial measures such as unit net
cash costs per pound of copper and per pound of molybdenum. As required by SEC
Regulation G, reconciliations of these measures to amounts reported in FCX's
consolidated financial statements are in the supplemental schedule, “Product
Revenues and Production Costs,” beginning on page VII, which is also available
on FCX's website, “www.fcx.com.”

ADDITIONAL INFORMATION ABOUT THE PROPOSED PXP AND MMR TRANSACTIONS AND WHERE
TO FIND IT

PXP Transaction

In connection with the proposed transaction, FCX has filed with the SEC a
registration statement on Form S-4 that includes a preliminary proxy statement
of PXP that also constitutes a prospectus of FCX. FCX and PXP also plan to
file other relevant documents with the SEC regarding the proposed transaction.
INVESTORS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS AND OTHER RELEVANT
DOCUMENTS FILED WITH THE SEC IF AND WHEN THEY BECOME AVAILABLE, BECAUSE THEY
WILL CONTAIN IMPORTANT INFORMATION. You may obtain a free copy of the
definitive proxy statement/prospectus (if and when it becomes available) and
other relevant documents filed by FCX and PXP with the SEC at the SEC's
website at www.sec.gov. You may also obtain these documents by contacting
FCX's Investor Relations department at (602) 366-8400, or via e-mail at
IR@fmi.com; or by contacting PXP's Investor Relations department at (713)
579-6291, or via email at investor@pxp.com.

FCX and PXP and their respective directors and executive officers and other
members of management and employees may be deemed to be participants in the
solicitation of proxies in respect of the proposed transaction. Information
about FCX's directors and executive officers is available in FCX's proxy
statement dated April 27, 2012, for its 2012 Annual Meeting of Stockholders.
Information about PXP's directors and executive officers is available in PXP's
proxy statement dated April 13, 2012, for its 2012 Annual Meeting of
Stockholders. Other information regarding the participants in the proxy
solicitation and a description of their direct and indirect interests, by
security holdings or otherwise, will be contained in the definitive proxy
statement/prospectus and other relevant materials to be filed with the SEC
regarding the merger when they become available. Investors should read the
definitive proxy statement/prospectus carefully when it becomes available. You
may obtain free copies of these documents from FCX or PXP using the sources
indicated above.

This document shall not constitute an offer to sell or the solicitation of an
offer to buy any securities, nor shall there be any sale of securities in any
jurisdiction in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of any such
jurisdiction. No offering of securities shall be made except by means of a
prospectus meeting the requirements of Section 10 of the U.S. Securities Act
of 1933, as amended.

MMR Transaction

In connection with the proposed transaction, the royalty trust formed in
connection with the transaction has filed with the SEC a registration
statement on Form S-4 that includes a preliminary proxy statement of MMR that
also constitutes a prospectus of the royalty trust. FCX, the royalty trust and
MMR also plan to file other relevant documents with the SEC regarding the
proposed transaction. INVESTORS ARE URGED TO READ THE PROXY
STATEMENT/PROSPECTUS AND OTHER RELEVANT DOCUMENTS FILED WITH THE SEC IF AND
WHEN THEY BECOME AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.
You may obtain a free copy of the proxy statement/prospectus (if and when it
becomes available) and other relevant documents filed by FCX, the royalty
trust and MMR with the SEC at the SEC's website at www.sec.gov. You may also
obtain these documents by contacting FCX's Investor Relations department at
(602) 366-8400, or via e-mail at IR@fmi.com; or by contacting MMR's Investor
Relations department at (504) 582-4000, or via email at IR@fmi.com.

FCX and MMR and their respective directors and executive officers and other
members of management and employees may be deemed to be participants in the
solicitation of proxies in respect of the proposed transaction. Information
about FCX's directors and executive officers is available in FCX's proxy
statement dated April 27, 2012, for its 2012 Annual Meeting of Stockholders.
Information about MMR's directors and executive officers is available in MMR's
proxy statement dated April 27, 2012, for its 2012 Annual Meeting of
Stockholders. Other information regarding the participants in the proxy
solicitation and a description of their direct and indirect interests, by
security holdings or otherwise, will be contained in the definitive proxy
statement/prospectus and other relevant materials to be filed with the SEC
regarding the merger when they become available. Investors should read the
definitive proxy statement/prospectus carefully when it becomes available. You
may obtain free copies of these documents from FCX or MMR using the sources
indicated above.

This document shall not constitute an offer to sell or the solicitation of an
offer to buy any securities, nor shall there be any sale of securities in any
jurisdiction in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of any such
jurisdiction. No offering of securities shall be made except by means of a
prospectus meeting the requirements of Section 10 of the U.S. Securities Act
of 1933, as amended.


FREEPORT-McMoRan COPPER & GOLD INC.
SELECTED OPERATING DATA
                                                              
                             Three Months Ended December 31,
                             Production              Sales
COPPER (millions of          2012         2011       2012            2011
recoverable pounds)
(FCX's net interest
in %)
North America
Morenci (85%)^a              142          131        127             132
Bagdad (100%)                50           49         46              49
Safford (100%)               46           50         40              45
Sierrita (100%)              37           46         35              46
Miami (100%)                 15           20         14              19
Tyrone (100%)                22           20         20              19
Chino (100%)                 45           24         38              22
Other (100%)                 1           1         1              1
Total North America          358         341       321            333
                                                                     
South America
Cerro Verde (53.56%)         152          145        149             154
El Abra (51%)                89           88         98              93
Candelaria/Ojos del          108         104       103            110
Salado (80%)
Total South America          349         337       350            357
                                                                     
Indonesia
Grasberg (90.64%)^b          200         68        204            50
                                                                     
Africa
Tenke Fungurume              98          77        97             83
(56%)^c
                                                                     
Consolidated                 1,005       823       972            823
Less noncontrolling          197         170       200            179
interests
Net                          808         653       772            644
                                                                     
Consolidated sales                                   972             823
from mines
Purchased copper                                     28             38
Total copper sales,                                  1,000          861
including purchases
                                                                     
Average realized                                     $  3.60         $  3.42
price per pound
                                                                     
GOLD (thousands of
recoverable ounces)
(FCX's net interest
in %)
North America (100%)         4            4          4               2
South America (80%)          26           28         26              29
Indonesia (90.64%)^b         221         149       224            102
Consolidated                 251         181       254            133
Less noncontrolling          27          20        26             15
interests
Net                          224         161       228            118
                                                                     
Consolidated sales                                   254             133
from mines
Purchased gold                                       —              —
Total gold sales,                                    254            133
including purchases
                                                                     
Average realized                                     $  1,681        $  1,656
price per ounce
                                                                     
MOLYBDENUM (millions
of recoverable
pounds)
(FCX's net interest
in %)
Henderson (100%)             8            8          N/A             N/A
Climax (100%)                5            —          N/A             N/A
North America                9            8          N/A             N/A
(100%)^a
Cerro Verde (53.56%)         2           2         N/A             N/A
Consolidated                 24          18        21             19
Less noncontrolling          1           1         1              1
interests
Net                          23          17        20             18
                                                                     
Consolidated sales                                   21              19
from mines
Purchased molybdenum                                 —              —
Total molybdenum
sales, including                                     21             19
purchases
                                                                     
Average realized                                     $  12.62        $  15.08
price per pound
                                                                     
COBALT (millions of
contained pounds)
(FCX's net interest
in %)
Consolidated - Tenke         6           7         6              6
Fungurume (56%)^c
Less noncontrolling          2           3         3              2
interests
Net                          4           4         3              4
                                                                     
Average realized                                     $  6.95         $  8.78
price per pound
                                                                     
a. Amounts are net of Morenci's 15 percent joint venture partner's interest.
b. Amounts are net of Grasberg's joint venture partner's interest, which
varies in accordance with the terms of the joint venture agreement.
c. Effective March 26, 2012, FCX's interest in Tenke Fungurume was
prospectively reduced from 57.75 percent to 56 percent.


FREEPORT-McMoRan COPPER & GOLD INC.
SELECTED OPERATING DATA (continued)
                                                              
                           Years Ended December 31,
                           Production                Sales
COPPER (millions of        2012         2011         2012            2011
recoverable pounds)
(FCX's net interest
in %)
North America
Morenci (85%)^a            537          522          532             521
Bagdad (100%)              197          194          196             201
Safford (100%)             175          151          175             147
Sierrita (100%)            157          177          162             175
Miami (100%)               66           66           68              59
Tyrone (100%)              83           76           82              79
Chino (100%)               144          69           132             62
Other (100%)               4           3           4              3
Total North America        1,363       1,258       1,351          1,247
                                                                     
South America
Cerro Verde (53.56%)       595          647          589             657
El Abra (51%)              338          274          338             276
Candelaria/Ojos del        324         385         318            389
Salado (80%)
Total South America        1,257       1,306       1,245          1,322
                                                                     
Indonesia
Grasberg (90.64%)^b        695         846         716            846
                                                                     
Africa
Tenke Fungurume            348         281         336            283
(56%)^c
                                                                     
Consolidated               3,663       3,691       3,648          3,698
Less noncontrolling        723         710         717            717
interests
Net                        2,940       2,981       2,931          2,981
                                                                     
Consolidated sales                                   3,648           3,698
from mines
Purchased copper                                     125            223
Total copper sales,                                  3,773          3,921
including purchases
                                                                     
Average realized                                     $  3.60         $  3.86
price per pound
                                                                     
GOLD (thousands of
recoverable ounces)
(FCX's net interest
in %)
North America (100%)       13           10           13              7
South America (80%)        83           101          82              101
Indonesia (90.64%)^b       862         1,272       915            1,270
Consolidated               958         1,383       1,010          1,378
Less noncontrolling        98          139         102            139
interests
Net                        860         1,244       908            1,239
                                                                     
Consolidated sales                                   1,010           1,378
from mines
Purchased gold                                       2              1
Total gold sales,                                    1,012          1,379
including purchases
                                                                     
Average realized                                     $  1,665        $  1,583
price per ounce
                                                                     
MOLYBDENUM (millions
of recoverable
pounds)
(FCX's net interest
in %)
Henderson (100%)           34           38           N/A             N/A
Climax (100%)^d            7            N/A          N/A             N/A
North America              36           35           N/A             N/A
(100%)^a
Cerro Verde (53.56%)       8           10          N/A             N/A
Consolidated               85          83          83             79
Less noncontrolling        4           5           4              4
interests
Net                        81          78          79             75
                                                                     
Consolidated sales                                   83              79
from mines
Purchased molybdenum                                 —              —
Total molybdenum
sales, including                                     83             79
purchases
                                                                     
Average realized                                     $  14.26        $  16.98
price per pound
                                                                     
COBALT (millions of
contained pounds)
(FCX's net interest
in %)
Consolidated - Tenke       26          25          25             25
Fungurume (56%)^c
Less noncontrolling        11          11          11             10
interests
Net                        15          14          14             15
                                                                     
Average realized                                     $  7.83         $  9.99
price per pound
                                                                     
a. Amounts are net of Morenci's 15 percent joint venture partner's interest.
b. Amounts are net of Grasberg's joint venture partner's interest, which
varies in accordance with the terms of the joint venture agreement.
c. Effective March 26, 2012, FCX's interest in Tenke Fungurume was
prospectively reduced from 57.75 percent to 56 percent.
d. Includes results from the Climax molybdenum mine since the start of
commercial operations in May 2012.


FREEPORT-McMoRan COPPER & GOLD INC.
SELECTED OPERATING DATA (continued)
                                                              
                               Three Months Ended          Years Ended
                               December 31,                December 31,
                               2012          2011          2012        2011
100% North America Copper
Mines
Solution
Extraction/Electrowinning
(SX/EW) Operations
Leach ore placed in
stockpiles (metric tons        1,090,600     1,019,500     998,600     888,300
per day)
Average copper ore grade       0.21          0.23          0.22        0.24
(percent)
Copper production
(millions of recoverable       227           219           866         801
pounds)
                                                                       
Mill Operations
Ore milled (metric tons        251,100       230,700       239,600     222,800
per day)
Average ore grades
(percent):
Copper                         0.38          0.39          0.37        0.38
Molybdenum                     0.03          0.03          0.03        0.03
Copper recovery rate           84.7          81.5          83.9        83.1
(percent)
Production (millions of
recoverable pounds):
Copper                         156           145           592         549
Molybdenum                     9             8             36          35
                                                                       
100% South America Mining
SX/EW Operations
Leach ore placed in
stockpiles (metric tons        229,900       232,500       229,300     245,200
per day)
Average copper ore grade       0.57          0.60          0.55        0.50
(percent)
Copper production
(millions of recoverable       111           125           457         439
pounds)
                                                                       
Mill Operations
Ore milled (metric tons        195,500       179,900       191,400     189,200
per day)
Average ore grades:
Copper (percent)               0.68          0.69          0.60        0.66
Gold (grams per metric         0.12          0.14          0.10        0.12
ton)
Molybdenum (percent)           0.02          0.02          0.02        0.02
Copper recovery rate           91.4          88.5          90.1        89.6
(percent)
Production (recoverable):
Copper (millions of            238           212           800         867
pounds)
Gold (thousands of ounces)     26            28            83          101
Molybdenum (millions of        2             2             8           10
pounds)
                                                                       
100% Indonesia Mining
Ore milled (metric tons
per day):^a
Grasberg open pit              125,200       40,600        118,800     112,900
DOZ underground mine           51,200        30,300        44,600      51,700
Big Gossan underground         2,100         900           1,600       1,500
mine
Total                          178,500       71,800        165,000     166,100
Average ore grades:
Copper (percent)               0.66          0.65          0.62        0.79
Gold (grams per metric         0.59          1.09          0.59        0.93
ton)
Recovery rates (percent):
Copper                         88.9          88.9          88.7        88.3
Gold                           75.9          80.5          82.7        81.2
Production (recoverable):
Copper (millions of            200           79            695         882
pounds)
Gold (thousands of ounces)     221           183           862         1,444
                                                                       
100% Africa Mining
Ore milled (metric tons        13,300        11,900        13,000      11,100
per day)
Average ore grades
(percent):
Copper                         3.81          3.40          3.62        3.41
Cobalt                         0.35          0.38          0.37        0.40
Copper recovery rate           94.8          93.8          92.4        92.5
(percent)
Production (millions of
pounds):
Copper (recoverable)           98            77            348         281
Cobalt (contained)             6             7             26          25
                                                                       
100% Henderson Molybdenum
Mine
Ore milled (metric tons        19,900        19,300        20,800      22,300
per day)
Average molybdenum ore         0.22          0.24          0.23        0.24
grade (percent)
Molybdenum production
(millions of recoverable       8             8             34          38
pounds)
                                                                       
a. Amounts represent the approximate average daily throughput processed at PT
Freeport Indonesia's mill facilities from each producing mine.


FREEPORT-McMoRan COPPER & GOLD INC.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
                                                                                          
                     Three Months Ended                             Years Ended
                     December 31,                                   December 31,
                     2012                      2011                 2012                        2011
                     (In Millions, Except Per Share Amounts)
Revenues             $ 4,513    ^a             $ 4,162   ^a         $ 18,010   ^a               $ 20,880   ^a
Cost of sales:
Production and       2,740      ^b             2,394     ^b         10,382     ^b               9,898      ^b
delivery
Depreciation,
depletion and        323                      266                 1,179                      1,022    
amortization
Total cost of        3,063                     2,660                11,561                      10,920
sales
Selling, general
and                  120        ^c             92                   431        ^c               415
administrative
expenses
Exploration and
research             71                        77                   285                         271
expenses
Environmental
obligations and      (40      ) ^d             36        ^d         (22      ) ^d               134        ^d
shutdown costs
Gain on
insurance            (59      ) ^e             —                   (59      ) ^e               —        
settlement
Total costs and      3,155                    2,865               12,196                     11,740   
expenses
Operating income     1,358                     1,297                5,814                       9,140
Interest             (38      ) ^f             (62     ) ^f         (186     ) ^f               (312     ) ^f
expense, net
Losses on early
extinguishment       —                         —                    (168     )                  (68      )
of debt
Other income,        4                        18                  27                         58       
net
Income before
income taxes and
equity in            1,324                     1,253                5,487                       8,818
affiliated
companies' net
earnings
Provision for        (382     )                (389    )            (1,510   ) ^g               (3,087   ) ^g
income taxes
Equity in
affiliated           3                        2                   3                          16       
companies' net
earnings
Net income           945                       866                  3,980                       5,747
Net income
attributable to      (202     )                (226    )            (939     ) ^g               (1,187   ) ^g
noncontrolling
interests
Net income
attributable to      $ 743     ^a,b,c,d,e,h   $ 640    ^a,b,d,h   $ 3,041   ^a,b,c,d,e,g,h   $ 4,560   ^a,b,d,g,h
FCX common
stockholders
                                                                                                           
Net income per
share
attributable to
FCX common
stockholders:
Basic                $ 0.78                   $ 0.67              $ 3.20                     $ 4.81   
Diluted              $ 0.78                   $ 0.67              $ 3.19                     $ 4.78   
                                                                                                           
Weighted-average
common shares
outstanding:
Basic                949                      948                 949                        947      
Diluted              954                      953                 954                        955      
                                                                                                           
Dividends
declared per         $ 0.3125                 $ 0.25              $ 1.25                     $ 1.50   
share of common
stock

a. Includes (unfavorable) favorable adjustments to provisionally priced copper
sales recognized in prior periods totaling $(73) million ($(31) million to net
income attributable to common stockholders) in fourth-quarter 2012, $125
million ($56 million to net income attributable to common stockholders) in
fourth-quarter 2011, $101 million ($43 million to net income attributable to
common stockholders) for the year 2012 and $(12) million ($(5) million to net
income attributable to common stockholders) for the year 2011.

b. The 2012 periods include a charge of $16 million ($8 million to net income
attributable to common stockholders) associated with labor agreement costs at
Candelaria. The 2011 periods include charges totaling $116 million ($50
million to net income attributable to common stock) associated with bonuses
for new labor agreements and other employee costs at PT Freeport Indonesia,
Cerro Verde and El Abra.

c. The 2012 periods include charges of $9 million ($7 million to net income
attributable to common stockholders) for costs associated with the PXP and MMR
transactions.

d. Includes net (credits) charges for adjustments to environmental obligations
and related litigation reserves totaling $(42) million ($(24) million to net
income attributable to common stockholders) for fourth-quarter 2012, $29
million ($23 million to net income attributable to common stockholders) for
fourth-quarter 2011, $(62) million ($(40) million to net income attributable
to common stockholders) for the year 2012 and $107 million ($86 million to net
income attributable to common stockholders) for the year 2011.

e. The 2012 periods reflect a gain of $59 million ($31 million to net income
attributable to common stockholders) for the settlement of the insurance claim
for business interruption and property damage relating to the 2011 incidents
affecting PT Freeport Indonesia's concentrate pipelines.

f. Consolidated interest expense, before capitalized interest, totaled $57
million in fourth-quarter 2012, $96 million in fourth-quarter 2011, $267
million for the year 2012 and $421 million for the year 2011. Lower interest
expense in the 2012 periods primarily reflects the impact of the first-quarter
2012 refinancing transaction.

g. The year 2012 includes a net credit of $205 million ($107 million
attributable to noncontrolling interests and $98 million to net income
attributable to common stockholders) associated with adjustments to Cerro
Verde's deferred income taxes. The year 2011 includes a tax charge of $53
million ($4 million attributable to noncontrolling interests and $49 million
to net income attributable to common stockholders) for additional taxes
associated with Cerro Verde's election to pay a special mining burden during
the remaining term of its current stability agreement. For further discussion
refer to the supplemental schedule, "Provision for Income Taxes," on page
XXVI, which is also available on FCX's website, "www.fcx.com."

h. FCX defers recognizing profits on intercompany sales until final sales to
third parties occur. Changes in these deferrals attributable to variability in
intercompany volumes resulted in net (reductions) additions to net income
attributable to common stockholders of $(10) million in fourth-quarter 2012,
$39 million in fourth-quarter 2011, $(80) million for the year 2012 and $156
million for the year 2011.


FREEPORT-McMoRan COPPER & GOLD INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
                                                            
                                                 December 31,     December 31,
                                                 2012             2011
                                                 (In Millions)
ASSETS
Current assets:
Cash and cash equivalents                        $  3,705         $  4,822
Trade accounts receivable                        927              892
Other accounts receivable                        702              250
Inventories:
Mill and leach stockpiles                        1,672            1,289
Materials and supplies, net                      1,504            1,354
Product                                          1,400            1,226
Other current assets                             387             214        
Total current assets                             10,297           10,047
Property, plant, equipment and development       20,999           18,449
costs, net
Long-term mill and leach stockpiles              1,955            1,686
Long-term receivables                            769              675
Intangible assets, net                           334              325
Other assets                                     1,086           888        
Total assets                                     $  35,440       $  32,070  
                                                                  
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued liabilities         $  2,324         $  2,194
Current deferred income taxes                    384              103
Dividends payable                                299              240
Current portion of reclamation and               241              236
environmental obligations
Accrued income taxes                             93               163
Current portion of debt                          2               4          
Total current liabilities                        3,343            2,940
Long-term debt, less current portion             3,525            3,533
Deferred income taxes                            3,490            3,255
Reclamation and environmental obligations,       2,127            2,138
less current portion
Other liabilities                                1,644           1,651      
Total liabilities                                14,129           13,517
Equity:
FCX stockholders' equity:
Common stock                                     107              107
Capital in excess of par value                   19,119           19,007
Retained earnings                                2,399            546
Accumulated other comprehensive loss             (506       )     (465       )
Common stock held in treasury                    (3,576     )     (3,553     )
Total FCX stockholders' equity                   17,543           15,642
Noncontrolling interests                         3,768           2,911      
Total equity                                     21,311          18,553     
Total liabilities and equity                     $  35,440       $  32,070  


FREEPORT-McMoRan COPPER & GOLD INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
                                                   
                                                       Years Ended
                                                       December 31,
                                                       2012        2011
                                                       (In Millions)
Cash flow from operating activities:
Net income                                             $ 3,980       $ 5,747
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation, depletion and amortization               1,179         1,022
Stock-based compensation                               100           117
Pension plans contributions                            (140    )     (46     )
Net charges for reclamation and environmental          22            208
obligations, including accretion
Payments of reclamation and environmental              (246    )     (170    )
obligations
Losses on early extinguishment of debt                 168           68
Deferred income taxes                                  269           523
Increase in long-term mill and leach stockpiles        (269    )     (262    )
Other, net                                             128           (126    )
(Increases) decreases in working capital and
other tax payments:
Accounts receivable                                    (365    )     1,246
Inventories                                            (729    )     (431    )
Other current assets                                   (76     )     (57     )
Accounts payable and accrued liabilities               209           (387    )
Accrued income and other tax payments                  (456    )     (832    )
Net cash provided by operating activities              3,774        6,620   
                                                                     
Cash flow from investing activities:
Capital expenditures:
North America copper mines                             (827    )     (495    )
South America                                          (931    )     (603    )
Indonesia                                              (843    )     (648    )
Africa                                                 (539    )     (193    )
Molybdenum                                             (258    )     (461    )
Other                                                  (96     )     (134    )
Other, net                                             31           (1      )
Net cash used in investing activities                  (3,463  )     (2,535  )
                                                                     
Cash flow from financing activities:
Repayments of debt                                     (3,186  )     (1,313  )
Proceeds from debt                                     3,029         48
Cash dividends paid:
Common stock                                           (1,129  )     (1,423  )
Noncontrolling interests                               (113    )     (391    )
Contributions from noncontrolling interests            15            62
Excess tax benefit from stock-based awards             8             23
Other, net                                             (52     )     (7      )
Net cash used in financing activities                  (1,428  )     (3,001  )
                                                                     
Net (decrease) increase in cash and cash               (1,117  )     1,084
equivalents
Cash and cash equivalents at beginning of year         4,822        3,738   
Cash and cash equivalents at end of year               $ 3,705      $ 4,822 

Contact:

Freeport-McMoRan Copper & Gold Inc.
Financial Contacts:
Kathleen L. Quirk, 602-366-8016
or
David P. Joint, 504-582-4203
or
Media Contact:
Eric E. Kinneberg, 602-366-7994
 
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