Freeport-McMoRan Copper & Gold Inc. Reports Fourth-Quarter and Year Ended December 31, 2010 Results

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

• Net income attributable to common stock for fourth-quarter 2010
  was $1.5 billion, $3.25 per share, compared to net income of $971
  million, $2.15 per share, for fourth-quarter 2009. Net income
  attributable to common stock for the year 2010 was $4.3 billion, $9.14
  per share, compared to $2.5 billion, $5.86 per share, for the year
  2009.
  
• Consolidated sales from mines for fourth-quarter 2010 totaled
  941 million pounds of copper, 590 thousand ounces of gold and 17
  million pounds of molybdenum, compared to 989 million pounds of
  copper, 551 thousand ounces of gold and 16 million pounds of
  molybdenum for fourth-quarter 2009. Consolidated sales for the year
  2010 totaled 3.9 billion pounds of copper, 1.9 million ounces of gold
  and 67 million pounds of molybdenum, compared to 4.1 billion pounds of
  copper, 2.6 million ounces of gold and 58 million pounds of molybdenum
  for the year 2009.
  
• Consolidated sales from mines for the year 2011 are expected to
  approximate 3.85 billion pounds of copper, 1.4 million ounces of gold
  and 70 million pounds of molybdenum, including 840 million pounds of
  copper, 325 thousand ounces of gold and 17 million pounds of
  molybdenum for first-quarter 2011.
  
• Consolidated unit net cash costs (net of by-product credits)
  averaged $0.53 per pound for fourth-quarter 2010, compared to $0.62
  per pound for fourth-quarter 2009, and $0.79 per pound for the year
  2010, compared to $0.55 per pound for the year 2009. Assuming average
  prices of $1,350 per ounce for gold and $15 per pound for molybdenum,
  consolidated unit net cash costs (net of by-product credits) are
  estimated to average approximately $1.10 per pound for the year 2011.
  
• Operating cash flows totaled $2.1 billion for fourth-quarter
  2010 and $6.3 billion for the year 2010. These amounts are net of
  working capital requirements totaling $305 million in the quarter and
  $834 million for the year. Using estimated sales volumes and cost
  estimates and assuming average prices of $4.25 per pound for copper,
  $1,350 per ounce for gold and $15 per pound for molybdenum, operating
  cash flows for the year 2011 are estimated to approximate $8 billion.
  
• Capital expenditures totaled $535 million for fourth-quarter
  2010 and $1.4 billion for the year 2010. FCX currently expects capital
  expenditures to approximate $2.5 billion for the year 2011, including
  $1.2 billion for sustaining capital and $1.3 billion for major
  projects.
  
• 
  FCX′s Board of Directors declared a $1.00 per share supplemental
  common stock dividend (paid on December  30, 2010) and a two-for-one
  common stock split (to be effected on February 1, 2011).
  
• 
  On December 30, 2010, FCX completed the purchase of $500 million of 5
  3/4% Convertible Perpetual Preferred Stock of McMoRan Exploration Co.
  (NYSE: MMR).
  
• 
  At December 31, 2010, total debt approximated $4.8 billion and consolidated
  cash approximated $3.7 billion. During 2010, FCX repaid $1.6
  billion in debt.
  
• 
  FCX′s preliminary estimate of consolidated recoverable proven and
  probable reserves as of December  31, 2010, totaled 120.5 billion
  pounds of copper, 35.5 million ounces of gold and 3.39 billion pounds
  of molybdenum. Net reserve additions of 20.2 billion pounds of copper
  and 0.87 billion pounds of molybdenum replaced approximately 500
  percent of 2010 copper production and 1,200 percent of 2010 molybdenum
  production.
  

Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) reported fourth-quarter
2010 net income attributable to common stock of $1.5 billion, $3.25 per
share, compared to net income of $971 million, $2.15 per share, for the
fourth quarter of 2009. For the year 2010, FCX reported net income
attributable to common stock of $4.3 billion, $9.14 per share, compared
to $2.5 billion, $5.86 per share, in the year 2009.

James R. Moffett, Chairman of the Board, and Richard C. Adkerson,
President and Chief Executive Officer, said, 'We are pleased to report
record quarterly and annual financial results and substantial reserve
additions.We look forward to continued strong operating results
across our global operations and to the advancement of our attractive
development projects as we grow our production and enhance our asset
values.Our strong financial position and positive outlook will
enable us to invest in economically attractive growth projects while
providing strong cash returns to shareholders.?

Note: The share and per share data included in this release do not
reflect the stock split, which will be effected on February 1, 2011. See
the table on page 13 for information regarding the retroactive effect of
the stock split.

a. Includes impacts of adjustments to provisionally priced
concentrate and cathode sales recognized in prior periods (see
discussion on page 11).

b.After noncontrolling interests and preferred dividends.During
the second quarter of 2010, FCX's 6 ¾% Mandatory Convertible Preferred
Stock converted into 39 million shares of FCX common stock.

c.Includes net losses on early extinguishment of debt
totaling $4 million or $0.01 per share in fourth-quarter 2010, $15
million or $0.03 per share in fourth-quarter 2009, $71 million or $0.15
per share for the year 2010 and $43 million or $0.09 per share for the
year 2009.

d.Includes working capital uses of $305 million in
fourth-quarter 2010, $323 million in fourth-quarter 2009, $834 million
for the year 2010 and $770 million for the year 2009.

e.Reflects per pound weighted-average site production and
delivery unit costs and unit net cash costs, net of by-product credits,
for all copper mines.The 2009 periods exclude the results of
Africa as start-up activities were still under way.For
reconciliations of unit costs per pound by operating division to
production and delivery costs reported in FCX′s consolidated financial
statements, refer to the supplemental schedule, 'Product Revenues and
Production Costs,? beginning on page VII, which is available on FCX′s
web site, 'www.fcx.com.?

OPERATIONS

Consolidated. Fourth-quarter 2010 consolidated copper sales of
941 million pounds were higher than the October 2010 estimate of 895
million pounds but lower than the fourth-quarter 2009 copper sales of
989 billion pounds. The variance to the October 2010 estimate primarily
reflects favorable production performance in Indonesia, South America
and Africa. The variance to the 2009 period primarily reflects
anticipated lower sales from North America, partly offset by a higher
contribution from Indonesia.

Fourth-quarter 2010 consolidated gold sales of 590 thousand ounces
approximated the October 2010 estimate of 585 thousand ounces.
Fourth-quarter 2009 consolidated gold sales were 551 thousand ounces.

Fourth-quarter 2010 consolidated molybdenum sales of 17 million pounds
were higher than the October 2010 estimate of 15 million pounds
primarily because of stronger demand in the metallurgical sector. The
consolidated molybdenum sales for the fourth quarter of 2010
approximated the fourth-quarter 2009 sales of 16 million pounds.

Consolidated sales for 2011 are expected to approximate 3.85 billion
pounds of copper, 1.4 million ounces of gold and 70 million pounds of
molybdenum. Lower copper sales from Indonesia, resulting from mine
sequencing to lower grade ores, are expected to be offset by increases
in North America and Africa copper sales, compared to 2010. Lower gold
sales in 2011 reflect lower ore grades at Grasberg. Copper and gold
sales in the second half of 2011 are expected to be higher than in the
first half of 2011.

As anticipated, consolidated unit site production and delivery costs of
$1.46 per pound of copper in the fourth quarter of 2010 were higher than
the fourth-quarter 2009 unit costs of $1.25 per pound of copper.
Fourth-quarter 2010 unit net cash costs, net of by-product credits,
averaged $0.53 per pound of copper, compared to $0.62 per pound of
copper in the prior year quarter. The lower unit net cash costs in the
2010 period primarily reflect higher gold and molybdenum by-product
credits, partly offset by reduced volumes and increased input costs
including materials, labor and energy.

Assuming average prices of $1,350 per ounce for gold and $15 per pound
for molybdenum and using current 2011 sales volume and cost estimates,
consolidated unit net cash costs (net of by-product credits) are
expected to average approximately $1.10 per pound for the year 2011.
Unit net cash costs for 2011 are expected to be higher than 2010,
primarily because of the impact of higher unit net cash costs at
Grasberg associated with lower copper and gold volumes and higher input
costs. Quarterly unit net cash costs will vary with fluctuations in
sales volumes. Unit net cash costs for 2011 would change by
approximately $0.02 per pound for each $50 per ounce change in the
average price of gold and 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, Sierrita, Bagdad, Safford and Miami in
Arizona and Tyrone and Chino in New Mexico). Molybdenum is also produced
primarily at Sierrita and Bagdad. 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.

Operating and Development Activities. At Morenci, FCX has
commenced a staged ramp up from the 2009 mining rate of 450,000 metric
tons of ore per day to 635,000 metric tons per day. The mining rate
averaged 566,000 metric tons of ore per day in the fourth quarter of
2010. In addition, FCX restarted the Morenci mill in March 2010 to
process available sulfide material currently being mined. Mill
throughput averaged 42,200 metric tons of ore per day during the fourth
quarter of 2010 and is expected to increase to approximately 50,000
metric tons per day in 2011. The increased mining and milling activities
are expected to enable copper production to increase by approximately
125 million pounds annually. Further increases to Morenci′s mining rate
are being evaluated. FCX is also evaluating the potential for a new mill
at Morenci, which would involve significant investment.

FCX has initiated limited mining activities at the Miami mine in Arizona
to improve efficiencies of ongoing reclamation projects associated with
historical mining operations at the site. During an approximate
five-year mine life, FCX expects to ramp up production at Miami to
approximately 100 million pounds of copper per year. FCX is investing
approximately $40 million in this project, which is benefiting from the
use of existing mining equipment.

FCX has initiated the restart of mining and milling activities at the
Chino mine in New Mexico, which were suspended in late 2008. The ramp up
of mining and milling activities will significantly increase production
at Chino, which is currently producing small amounts of copper from
existing leach stockpiles. Planned mining and milling rates are expected
to be achieved by the end of 2013. Costs for the project for equipment
and mill refurbishment are expected to approximate $150 million.
Incremental annual production is expected to be 100 million pounds in
2012 and 2013 and 200 million pounds in 2014.

FCX is completing the construction of a sulphur burner at Safford, which
will provide a more cost effective source of sulphuric acid used in
solution extraction/electrowinning operations and lower transportation
costs. This project is expected to be completed in the second quarter of
2011 at a capital investment of approximately $150 million.

Operating plans and potential expansion opportunities in North America
continue to be assessed.

a.Sales of molybdenum produced at the North America copper
mines are reflected in the molybdenum division discussion on page 9.

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
available on FCX′s web site, 'www.fcx.com.?

Fourth-quarter 2010 consolidated copper sales in North America of 238
million pounds were 21 percent lower than fourth-quarter 2009 sales,
primarily because of the timing of shipments and slightly lower
production.

For the year 2011, FCX expects sales from North America copper mines to
approximate 1.2 billion pounds of copper, compared to 1.1 billion pounds
of copper for 2010. The impact of increased mining and milling rates at
Morenci and the restart of Miami and Chino are expected to further
increase production in future periods.

North America unit site production and delivery costs were higher in the
fourth quarter of 2010, compared to the fourth quarter of 2009,
primarily because of higher input costs and increased mining and milling
activities. Fourth-quarter 2010 unit net cash costs of $1.33 per pound
benefited from higher molybdenum by-product credits.

Based on current operating plans, assuming an average molybdenum price
of $15 per pound and using current 2011 sales volume and cost estimates,
FCX estimates that average unit net cash costs, including molybdenum
credits, for its North America copper mines would approximate $1.39 per
pound of copper for the year 2011. Unit net cash costs for 2011 are
projected to be higher than 2010 levels, primarily because of higher
mining rates and increases in input costs. Unit net cash costs for 2011
would change by approximately $0.05 per pound for each $2 per pound
change in the average price of molybdenum.

South America Mining. FCX operates four copper mines in South
America ? Cerro Verde in Peru and Candelaria, Ojos del Salado and El
Abra in Chile. FCX owns a 53.56 percent interest in Cerro Verde, an
open-pit mine currently producing both electrowon copper cathodes and
copper concentrates. FCX owns 80 percent of the Candelaria and Ojos del
Salado mining complexes, which include the Candelaria open-pit and
underground mines and the Ojos del Salado underground mines. These mines
use common processing facilities to produce copper concentrates. FCX
owns a 51 percent interest in El Abra, an open-pit mine producing
electrowon copper cathodes. All operations in South America are
consolidated in FCX′s financial statements.

Operating and Development Activities. FCX is completing
construction activities associated with the development of a large
sulfide deposit at El Abra to extend its mine life by over 10 years.
Construction activities for the initial phase of the project are
approximately 80 percent complete. Production from the sulfide ore,
which is projected to ramp up to approximately 300 million pounds of
copper per year, is expected to replace the currently depleting oxide
copper production. The capital investment for this project is expected
to total $725 million through 2015, including $565 million for the
initial phase of the project expected to be completed in the second
quarter of 2011. In addition, FCX is engaged in studies for a potential
large-scale milling operation to process additional sulfide material and
to achieve higher recoveries.

During the fourth quarter of 2010, FCX completed its $50 million project
to increase throughput at the existing Cerro Verde concentrator from
108,000 metric tons of ore per day to 120,000 metric tons per day. The
expanded rates are expected to result in incremental annual production
of approximately 30 million pounds of copper.

FCX is completing its evaluation of a large-scale concentrator expansion
at Cerro Verde. Large reserve additions in recent years have provided
opportunities to expand significantly the existing facility′s capacity.
A range of expansion options is being reviewed and the related
feasibility study is expected to be completed in the second quarter of
2011.

a.Sales of molybdenum produced at the South America copper
mines are reflected in the molybdenum division discussion on page 9.

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
available on FCX′s web site, 'www.fcx.com.?

Consolidated copper sales in South America totaled 340 million pounds in
the fourth quarter of 2010, which were slightly lower than
fourth-quarter 2009 sales.

For the year 2011, FCX expects South America sales of 1.3 billion pounds
of copper and 100 thousand ounces of gold, similar to 2010 sales.

South America unit site production and delivery costs for the fourth
quarter of 2010 were slightly higher than the year-ago period,
principally reflecting higher input costs. Higher gold and molybdenum
credits in the fourth quarter of 2010 resulted in lower unit net cash
costs than the year-ago period.

Using current 2011 sales and cost estimates, FCX estimates that average
unit net cash costs, including molybdenum and gold credits, for its
South America mining operations would approximate $1.25 per pound of
copper for the year 2011. Unit net cash costs for 2011 are projected to
be higher than the 2010 levels, primarily because of higher input costs.

Indonesia Mining. Through its 90.64 percent owned and wholly
consolidated subsidiary PT Freeport Indonesia (PT-FI), FCX operates the
world′s largest copper and gold mine in terms of reserves at its
Grasberg operations in Papua, Indonesia.

Operating and Development Activities. FCX has several attractive
development projects in the Grasberg minerals district, primarily
related to the development of the large-scale, high-grade underground
ore bodies located beneath and adjacent to the Grasberg open pit. PT-FI
continues to evaluate economic studies and mine plans to determine the
optimal transition from the Grasberg open pit to the Grasberg Block
Cave, which is currently scheduled for 2016. In aggregate, these
underground ore bodies are expected to ramp up to approximately 240,000
metric tons of ore per day following the anticipated depletion of the
Grasberg open pit in 2016. The Deep Ore Zone (DOZ) mine, one of the
world′s largest underground mines, has been expanded to 80,000 metric
tons of ore per day; and the high-grade Big Gossan mine, which began
producing in the fourth quarter of 2010, is expected to reach full rates
of 7,000 metric tons of ore per day by the end of 2012. A feasibility
study for the Deep Mill Level Zone, which is expected to start up as the
DOZ depletes, has been completed. Substantial progress has been made in
developing infrastructure and underground workings that will enable
access to the underground ore bodies. Development of the terminal
infrastructure and mine access for the Grasberg Block Cave and Deep Mill
Level Zone ore bodies is in progress. Estimated aggregate capital
spending on these projects in 2010 approximated $288 million ($228
million net to PT-FI). Over the next five years, estimated aggregate
capital spending is expected to average approximately $600 million ($470
million net to PT-FI) per year on underground development activities.

a.For a reconciliation of unit net cash credits 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
available on FCX′s web site, 'www.fcx.com.?

Indonesia reported higher copper sales in the fourth quarter of 2010,
compared to the fourth quarter of 2009, primarily because of higher ore
grades. Gold sales in the fourth quarter of 2010 were also higher than
in the fourth quarter of 2009. At the Grasberg mine, the sequencing of
mining areas with varying ore grades causes fluctuations in the timing
of ore production resulting in fluctuations in quarterly and annual
sales of copper and gold.

FCX expects to be mining in a lower-grade section of the Grasberg pit
during 2011. As a result, Indonesia sales of 1.0 billion pounds of
copper and 1.3 million ounces of gold for the year 2011 are expected to
be lower than the 2010 sales of 1.2 billion pounds of copper and 1.8
million ounces of gold. Ore grades and copper and gold sales for 2011
are expected to be higher in the second half compared to the first half
with approximately 53 percent of copper and 57 percent of gold expected
in the second half.

Indonesia unit site production and delivery costs were higher in the
fourth quarter of 2010, compared to the fourth quarter of 2009,
primarily because of higher maintenance, support and input costs, partly
offset by the impact of higher volumes. The unit net cash credit of
$0.91 per pound in the fourth quarter of 2010 improved from the year-ago
quarter net credit of $0.67 principally because of higher gold credits.

Projected lower copper and gold volumes for 2011 and the effect of
higher input costs are expected to result in a significant increase in
Grasberg′s unit net cash costs compared to 2010 levels. Assuming an
average gold price of $1,350 per ounce and using current 2011 sales and
cost estimates, FCX expects PT-FI′s average unit net cash costs,
including gold and silver credits, to approximate $0.60 per pound for
the year 2011. Unit net cash costs for 2011 would change by
approximately $0.065 per pound for each $50 per ounce change in the
average price of gold. Quarterly unit net cash costs will vary
significantly with variations in quarterly metal sales volumes. Unit net
cash costs are expected to be higher in the first half of 2011 compared
to the second half.

Africa Mining. FCX has held an effective 57.75 percent interest
in the Tenke Fungurume copper and cobalt mining concessions in the
Katanga province of the Democratic Republic of Congo (DRC) and is the
operator of the project, which is consolidated in FCX′s financial
statements. Construction activities on the approximately $2 billion
initial project were completed in 2009. Production of copper cathode
commenced in March 2009 and achieved targeted rates in September 2009.
The cobalt plant and sulphuric acid plant were commissioned in the third
quarter of 2009.

Operating and Development Activities. FCX continues to engage in
drilling activities, exploration analyses and metallurgical testing to
evaluate the potential of the highly prospective district at Tenke
Fungurume. These analyses are being incorporated in future plans to
evaluate expansion opportunities. FCX is planning a second phase of the
project, which would include optimizing the current plant and increasing
capacity. As part of phase two, a range of near-term expansion options
is being considered, which have the potential of adding 100 million to
200 million pounds of copper per annum over the next two to three years.
FCX expects production volumes from the project to be expanded
significantly over time.

The milling facilities, which were designed to produce at a capacity
rate of 8,000 metric tons of ore per day, continue to perform above
capacity. During the fourth quarter of 2010, mill throughput averaged
11,100 metric tons of ore per day. Tenke Fungurume has procured
additional mining equipment, which is enabling additional high-grade
material to be mined and processed in 2011. Based on these enhancements
to the mine plan and an expected mill throughput rate of 10,000 metric
tons of ore per day, FCX estimates annual copper production will
increase from the initial rate of 250 million pounds to approximately
290 million pounds.

a.Represents results since March 2009.

b.Includes adjustments for point-of-sale transportation costs
as negotiated in customer contracts.

c.Information has not been included for the 2009 periods as
start-up activities were still under way.

d.Net of cobalt downstream processing and freight costs.

e.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
available on FCX′s web site, 'www.fcx.com.?

Fourth-quarter 2010 production and sales exceeded the prior-year quarter
because of improved operating rates. For the year 2010, copper sales
from Tenke Fungurume totaled 262 million pounds, compared to 130 million
pounds in 2009.

FCX expects Tenke Fungurume sales of approximately 285 million pounds of
copper and over 20 million pounds of cobalt for the year 2011, compared
to 262 million pounds of copper and 20 million pounds of cobalt for 2010.

During the fourth quarter of 2010, Tenke Fungurume′s unit site
production and delivery costs averaged $1.48 per pound of copper and its
unit net cash costs, net of cobalt by-product credits, averaged $0.89
per pound of copper.

Assuming an average cobalt price of $14 per pound and using current 2011
sales and cost estimates, average unit net cash costs are expected to
approximate $0.85 per pound of copper for the year 2011. Each $2 per
pound change in the average price of cobalt would impact unit net cash
costs by approximately $0.09 per pound of copper.

Other Matters. In October 2010, the government of the DRC
announced the conclusion of the review of Tenke Fungurume Mining
S.A.R.L.′s (TFM) contracts, and confirmed that TFM′s existing mining
contracts are in good standing and acknowledged the rights and benefits
granted under those contracts. In connection with the review, TFM made
several commitments that have been reflected in amendments to its mining
contracts. After giving effect to the amendments, FCX′s effective
ownership percentage in the project will be 56.0 percent, compared to a
previous ownership interest of 57.75 percent.

In December 2010, the addendums to TFM′s Amended and Restated Mining
Convention and Amended and Restated Shareholders′ Agreement were signed
by the parties. Presidential decrees approving the agreements and
required modifications are expected to be received in the near future.

Molybdenum. FCX is the world′s largest producer of molybdenum.
FCX conducts molybdenum mining operations at its wholly owned Henderson
underground mine in Colorado and sells molybdenum from its North and
South America copper mines.

Operating and Development Activities. Construction activities at
the Climax molybdenum mine are continuing, and recent activities include
completion of concrete foundations for various equipment installations
and commencement of the ball mill shell assembly. FCX plans to advance
construction and conduct mine preparation activities during 2011. The
timing for start up of mining and milling activities will be dependent
on market conditions. FCX believes that this project is one of the most
attractive primary molybdenum development projects in the world, with
large scale production capacity, attractive cash costs and future growth
options. The Climax mine would have an initial annual design capacity of
30 million pounds with significant expansion options. Estimated
remaining costs for the project approximate $450 million.

a.Amounts reflect production at the Henderson molybdenum mine.

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

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
available on FCX′s web site, 'www.fcx.com.?

d.Includes freight and downstream conversion costs totaling
$1.09 per pound in the 2009 periods that were not included in unit net
cash costs in prior years.

Consolidated molybdenum sales from mines were slightly higher in the
fourth quarter of 2010, compared to the fourth quarter of 2009.
Consolidated molybdenum sales of 67 million pounds for the year 2010
were 16 percent higher than the prior year because of improved demand in
the chemicals sector.

For the year 2011, FCX expects molybdenum sales from its mines to
approximate 70 million pounds (includes production of approximately 45
million pounds from the North and South America copper mines), compared
to 67 million pounds in 2010 (includes production of 32 million pounds
from the North and South America copper mines). The weekly average Metals
Week Molybdenum Dealer Oxide price as of January 19, 2011, was
$17.13 per pound.

Unit net cash costs at the Henderson primary molybdenum mine were lower
in the fourth quarter of 2010 compared to the fourth quarter of 2009,
primarily because of higher production volumes. Using current 2011 sales
estimates, FCX expects average unit net cash costs for its Henderson
mine to approximate $7.20 per pound of molybdenum for the year 2011,
which are higher than the 2010 level, primarily because of lower volumes.

PROVEN AND PROBABLE RESERVES

FCX has significant reserves, resources and future development
opportunities within its portfolio of assets. Since the merger with
Phelps Dodge in 2007, FCX has added 42.9 billion pounds of proven and
probable copper reserves, including 20.2 billion pounds during 2010, and
1.72 billion pounds of proven and probable molybdenum reserves,
including 0.87 billion pounds in 2010, based on preliminary 2010 reserve
estimates. FCX′s preliminary estimated consolidated recoverable proven
and probable reserves at December 31, 2010, include 120.5 billion pounds
of copper, 35.5 million ounces of gold and 3.39 billion pounds of
molybdenum. Estimated recoverable reserves at December 31, 2010, 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, compared to
using $1.60 per pound for copper, $550 per ounce for gold and $8.00 per
pound for molybdenum for the proven and probable reserve estimates at
December 31, 2009.

Net additions to recoverable copper reserves totaled approximately 20.2
billion pounds, including additions of 15.7 billion pounds at the North
America mines and 4.8 billion pounds in South America. The reserve
additions reflect positive exploration results and the effect of higher
reserve price assumptions. The increases in reserves replaced
approximately 500 percent of FCX′s 2010 copper production and 1,200
percent of FCX′s 2010 molybdenum production.

a.Preliminary recoverable proven and probable reserves are
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.

b.Consolidated basis represents estimated metal quantities
after reduction for joint venture partner interests at the Morenci mine
in North America and the Grasberg mining complex in Indonesia.Excluded
from the table above are FCX′s estimated recoverable proven and probable
reserves for cobalt and silver totaling 0.75 billion pounds of cobalt at
Tenke Fungurume and 325.0 million ounces of silver.

c.Net equity interest represents estimated consolidated basis
metal quantities further reduced for noncontrolling interests.Excluded
from the table above are FCX′s estimated recoverable proven and probable
reserves for cobalt and silver totaling 0.43 billion pounds of cobalt at
Tenke Fungurume and 270.0 million ounces of silver.

At December 31, 2010, in addition to the preliminary estimated proven
and probable reserves, FCX identified preliminary estimated mineralized
material (assessed using a long-term average price of $2.20 per pound
for copper) with incremental contained copper of 110 billion pounds. FCX
continues to pursue aggressively opportunities to convert this
mineralized material into reserves, future production volumes and cash
flow.

EXPLORATION ACTIVITIES

FCX is 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
mineral districts where it currently operates. Favorable exploration
results indicate opportunities for significant future potential reserve
additions in the Americas and in the Tenke Fungurume district. The
drilling data in North America continue to indicate the potential for
expanded sulfide production.

Exploration spending in 2011 is being increased significantly to an
estimated $200 million, compared to $113 million in 2010. Exploration
activities will continue to focus primarily on the potential for future
reserve additions in FCX′s existing mineral districts.

PROVISIONAL PRICING AND OTHER

For the year 2010, 52 percent of FCX′s mined copper was sold in
concentrate, 26 percent as cathode and 22 percent as rod from North
America operations. Under the long-established structure of sales
agreements prevalent in the industry, substantially all of FCX′s
concentrate and cathode sales are provisionally priced at the time of
shipment. The provisional prices are finalized in a contractually
specified future period generally one to four months from the shipment
date, primarily based on quoted London Metal Exchange (LME) prices.
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.

At September 30, 2010, 390 million pounds of copper sales at FCX′s
copper mining operations (net of intercompany sales and noncontrolling
interests) were provisionally priced at an average of $3.63 per pound.
Higher prices during the fourth quarter of 2010 resulted in favorable
adjustments to these provisionally priced copper sales and increased
fourth-quarter 2010 consolidated revenues by $186 million ($79 million
to net income attributable to common stock or $0.16 per share).
Favorable adjustments to the September 30, 2009, provisionally priced
copper sales increased fourth-quarter 2009 consolidated revenues by $140
million ($63 million to net income attributable to common stock or $0.13
per share). Unfavorable adjustments to the December 31, 2009,
provisionally priced copper sales decreased 2010 consolidated revenues
by $24 million ($10 million to net income attributable to common stock
or $0.02 per share), and favorable adjustments to the December 31, 2008,
provisionally priced copper sales increased 2009 consolidated revenues
by $132 million ($61 million to net income attributable to common stock
or $0.13 per share).

LME copper prices averaged $3.92 per pound during the fourth quarter of
2010, compared to FCX′s recorded average price of $4.18 per pound. At
December 31, 2010, FCX had copper sales of 417 million pounds of copper
at its copper mining operations (net of intercompany sales and
noncontrolling interests) priced at an average of $4.36 per pound,
subject to final pricing over the next several months. Each $0.05 change
from the December 31, 2010, average price for provisionally priced
copper sales would have an approximate $13 million effect on FCX′s 2011
net income attributable to common stock. The LME closing settlement
price for copper on January 19, 2011, was $4.44 per pound.

CASH FLOWS, CASH, DEBT and EQUITY

Operating cash flows totaled $2.1 billion for the fourth quarter of
2010, net of $305 million of working capital requirements, and $6.3
billion for the year 2010, net of $834 million of working capital
requirements.

Cash used in investing activities totaled $1.0 billion for the fourth
quarter of 2010 and $1.9 billion for the year 2010, which included
capital expenditures of $535 million for the fourth quarter and $1.4
billion for the year and the purchase of $500 million of MMR′s 5 ¾%
Convertible Perpetual Preferred Stock.

At December 31, 2010, FCX had consolidated cash of $3.7 billion. Net of
noncontrolling interests′ share, taxes and other costs, cash available
to the parent company totaled $3.1 billion as shown below (in billions):

a.Includes cash at FCX′s parent and North America mining
operations.

At December 31, 2010, FCX had $4.8 billion in debt, with no borrowings
and $43 million of letters of credit issued under its revolving credit
facilities resulting in total availability of approximately $1.5 billion.

Since January 1, 2009, FCX repaid approximately $2.6 billion in debt
(approximately 35 percent of outstanding debt on January 1, 2009),
resulting in estimated annual interest savings of approximately $167
million based on current interest rates.

FCX′s debt maturities through 2013 are indicated in the table below (in
millions).

FCX has $1.1 billion in debt, which is redeemable prior to April 2011,
and $3.0 billion in debt, which is redeemable prior to April 2012, at
make-whole redemption prices and afterwards at stated redemption prices.

OUTLOOK

Projected consolidated sales volumes for 2011 approximate 3.85 billion
pounds of copper, 1.4 million ounces of gold and 70 million pounds of
molybdenum, including 840 million pounds of copper, 325 thousand ounces
of gold and 17 million pounds of molybdenum in the first quarter of 2011.

Using 2011 sales volume and cost estimates and assuming average prices
of $4.25 per pound of copper, $1,350 per ounce of gold and $15 per pound
of molybdenum, FCX′s consolidated operating cash flows are estimated to
approximate $8 billion in 2011. The impact of price changes on FCX′s
2011 operating cash flows would approximate $150 million for each $0.05
per pound change in the average price of copper, $55 million for each
$50 per ounce change in the average price of gold and $80 million for
each $2 per pound change in the average price of molybdenum.

FCX′s capital expenditures are currently estimated to approximate $2.5
billion for 2011. Capital expenditures for major projects in 2011 are
expected to approximate $1.3 billion, which primarily includes
underground development activities at Grasberg, construction activities
at the Climax molybdenum mine and completion of the initial phase of the
sulfide ore project at El Abra. In addition, FCX is 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.

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.

In October 2010, FCX′s Board of Directors authorized an increase in the
annual cash dividend on its common stock from $1.20 per share to $2.00
per share, which would be paid as regular quarterly cash dividends of
$0.50 per share if declared by the Board. In December 2010, FCX′s Board
of Directors declared a supplemental common stock dividend of $1.00 per
share that was paid on December 30, 2010. The supplemental dividend
totaling $472 million was in addition to FCX′s regular quarterly common
stock dividend.

In December 2010, FCX′s Board of Directors also declared a two-for-one
split of its common stock to be effected on February 1, 2011.
Shareholders will receive one additional share of common stock for each
share of common stock held. The additional shares will be issued on
February 1, 2011, and will increase the number of shares outstanding to
approximately 945 million from approximately 472 million. The regular
quarterly cash dividend of $0.50 per share is also payable on February
1, 2011, on pre-split shares. FCX will begin trading on the NYSE at its
post-split price on February 2, 2011. After taking the stock split into
account, the annual dividend rate is expected to be $1.00 per share
($0.25 per share quarterly).

FCX intends to continue to maintain a strong financial position, invest
aggressively in attractive growth projects and provide strong cash
returns to shareholders. The Board will continue to review FCX′s
financial policy on an ongoing basis.

Net income per share and weighted-average common shares outstanding,
giving retroactive effect to the stock split, for the periods ended
December 31 were as follows:

WEBCAST INFORMATION

A conference call with securities analysts to discuss FCX′s
fourth-quarter 2010 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, February 18,
2011.

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 mining complex,
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 DRC. Additional information about FCX
is available on FCX′s web site 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 commodity prices, projected capital
expenditures, projected exploration efforts and results, projected mine
production and development plans, liquidity, other financial commitments
and tax rates, the impact of copper, gold, molybdenum and cobalt price
changes, reserve estimates, potential prepayments of debt, future
dividend payments and potential share purchases.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 and payment of
dividends is at the discretion of FCX′s Board of Directors 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.

In making any forward-looking statements, the person making them
believes that the expectations are based on reasonable assumptions.FCX
cautions readers that those 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 potential effects of violence in
Indonesia, documentation of the outcome of the contract review process
and resolution of administrative disputes in the Democratic Republic of
Congo, risks related to the investment in MMR, weather-related risks,
labor relations, environmental risks, litigation results, currency
translation risks 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 December 31, 2009, filed with the SEC. Investors are cautioned
that many of the assumptions on which our forward-looking statements are
based are likely to change after our forward-looking statements are
made, including for example commodity prices, which we cannot control,
and production volumes and costs, some aspects of which we may or may
not be able to control. Further, we may make changes to our business
plans that could or will affect our results. We caution investors that
we do not intend to update our forward-looking statements
notwithstanding any changes in our assumptions, changes in our business
plans, our actual experience, or other changes, and we undertake no
obligation to update any forward-looking statements more frequently than
quarterly.

This press release also contains certain financial measures such as
unit net cash costs (credits) 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 available on FCX′s
web site, 'www.fcx.com.?