Freeport-McMoRan Copper & Gold Inc. Completes Agreements for Acquisition Term Loan & New Revolving Credit Facility

  Freeport-McMoRan Copper & Gold Inc. Completes Agreements for Acquisition
  Term Loan & New Revolving Credit Facility

Business Wire

PHOENIX -- February 19, 2013

Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) announced today the completion
of agreements with two bank syndicates providing committed financing for a $4
billion bank Term Loan and a new $3 billion Revolving Credit Facility in
connection with FCX’s proposed acquisitions of Plains Exploration & Production
Company (NYSE: PXP) and McMoRan Exploration Co. (NYSE: MMR).

The Term Loan will be drawn at the closing of the acquisitions and may be used
to fund the cash portion of the acquisitions, refinancings of certain debt
outstanding at PXP and MMR or for general corporate purposes. The Term Loan
will mature five years from the date of the first borrowing and will bear
interest determined by reference to FCX’s credit ratings (currently LIBOR +
1.50%).

In connection with the completion of the Term Loan, lender commitments under
FCX’s acquisition bridge facilities have been reduced from $9.5 billion to
$5.5 billion.

In addition, FCX has entered into agreements for a new five-year $3 billion
Revolving Credit Facility, which will replace FCX’s existing $1.5 billion
revolving credit facility on completion of the PXP transaction.

J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith
Incorporated, BNP Paribas Securities Corp., Citigroup Global Markets Inc.,
HSBC Securities (USA) Inc., Mizuho Corporate Bank, Ltd., Sumitomo Mitsui
Banking Corporation, The Bank of Nova Scotia, and The Bank of Tokyo-Mitsubishi
UFJ, Ltd. were joint lead arrangers and joint bookrunners for the Term Loan
and/or the Revolving Credit Facility.

The proposed acquisitions are expected to close in second quarter 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.

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

Cautionary Statement: This press release contains forward-looking statements,
which are all statements other than statements of historical facts, such as
those statements regarding 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.

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 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.

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.

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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