Freeport-McMoRan Copper & Gold Inc. Reports First-Quarter 2011 Results

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

• Net income attributable to common stock for first-quarter 2011
  was $1.5 billion, $1.57 per share, compared to net income of $897
  million, $1.00 per share, for first-quarter 2010.
  
• Consolidated sales from mines for first-quarter 2011 totaled
  926 million pounds of copper, 480 thousand ounces of gold and 20
  million pounds of molybdenum, compared to 960 million pounds of
  copper, 478 thousand ounces of gold and 17 million pounds of
  molybdenum for first-quarter 2010.
  
• Consolidated sales from mines for the year 2011 are expected to
  approximate 3.9 billion pounds of copper, 1.6 million ounces of gold
  and 73 million pounds of molybdenum, including 965 million pounds of
  copper, 365 thousand ounces of gold and 17 million pounds of
  molybdenum for second-quarter 2011.
  
• Consolidated unit net cash costs (net of by-product credits)
  averaged $0.79 per pound of copper for first-quarter 2011, compared to
  $0.82 per pound for first-quarter 2010. Assuming average prices of
  $1,400 per ounce for gold and $15 per pound for molybdenum for the
  remainder of 2011, consolidated unit net cash costs (net of by-product
  credits) are estimated to average approximately $1.04 per pound of
  copper for the year 2011.
  
• Operating cash flows totaled $2.4 billion for first-quarter
  2011. Using current 2011 sales volume and cost estimates and assuming
  average prices of $4.25 per pound for copper, $1,400 per ounce for
  gold and $15 per pound for molybdenum for the remainder of 2011,
  operating cash flows for the year 2011 are estimated to approximate
  $8.3 billion.
  
• Capital expenditures totaled $505 million for first-quarter
  2011. 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.
  
• 
  At March 31, 2011, total debt approximated $4.8 billion. After
  taking into account the April 1, 2011, redemption of $1.1 billion in
  8.25% Senior Notes due 2015, total debt approximated $3.7 billion and
  consolidated cash approximated $4.1 billion.
  
• 
  A two-for-one stock split of FCX common stock was effected on
  February 1, 2011. All references to earnings or losses per share have
  been retroactively adjusted to reflect the two-for-one stock split.
  
• 
  FCX′s Board of Directors declared a $0.50 per share supplemental
  common stock dividend to be paid on June 1, 2011, to shareholders
  of record as of May 15, 2011.
  

Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) reported first-quarter
2011 net income attributable to common stock of $1.5 billion, $1.57 per
share, compared to net income of $897 million, $1.00 per share, for the
first quarter of 2010.

James R. Moffett, Chairman of the Board, and Richard C. Adkerson,
President and Chief Executive Officer, said, 'Our strong first-quarter
results reflect solid execution by our global operating teams and
continuation of favorable pricing for our principal commodities ?
copper, gold and molybdenum.We are focused on continuing the
successful execution of our operating plans and on developing our highly
attractive projects for future growth.We are well placed for
future success with an attractive resource position, strong technical
and project management capabilities and the financial resources required
for investment.We are also pleased to have significant cash
flows to enable investment in growth projects while providing increased
cash returns to shareholders.?

OPERATIONS

Consolidated. First-quarter 2011 consolidated copper sales of 926
million pounds were higher than the January 2011 estimate of 840 million
pounds but lower than first-quarter 2010 copper sales of 960 million
pounds. The variance to the January 2011 estimate primarily reflects
favorable production performance in Indonesia, because of access to
high-grade ore previously expected to be mined in future periods, and
improved production in North and South America. The variance to the 2010
period primarily reflects lower sales from Indonesia and North America
because of timing of shipments.

First-quarter 2011 consolidated gold sales of 480 thousand ounces were
higher than the January 2011 estimate of 325 thousand ounces, primarily
because of mining higher grade ore in Indonesia previously expected in
future periods, and approximated first-quarter 2010 gold sales of 478
thousand ounces.

First-quarter 2011 consolidated molybdenum sales of 20 million pounds
were higher than the January 2011 estimate and first-quarter 2010 sales
of 17 million pounds, primarily reflecting improved demand in the
chemical and metallurgical sectors.

Consolidated sales for 2011 are expected to approximate 3.9 billion
pounds of copper, 1.6 million ounces of gold and 73 million pounds of
molybdenum. Annual sales estimates are higher than the January 2011
estimates of 3.85 billion pounds of copper and 1.4 million ounces of
gold, primarily because of mine plan improvements in Indonesia.

As anticipated, consolidated unit site production and delivery costs of
$1.61 per pound of copper in the first quarter of 2011 were higher than
first-quarter 2010 unit costs of $1.35 per pound of copper as a result
of increased input costs, including materials, labor and energy. Average
unit net cash costs of $0.79 per pound of copper in the first quarter of
2011 were lower than $0.82 per pound of copper in the prior year
quarter, primarily because of higher gold and molybdenum by-product
credits in the 2011 period.

Assuming average prices of $1,400 per ounce for gold and $15 per pound
for molybdenum for the remainder of 2011 and using current 2011 sales
volume and cost estimates, consolidated unit net cash costs (net of
by-product credits) are expected to average approximately $1.04 per
pound of copper for the year 2011. Unit net cash costs are lower than
previous estimates because of higher volumes in Indonesia. 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 for the
remainder of 2011 and by approximately $0.02 per pound for each $2 per
pound change in the average price of molybdenum for the remainder of
2011.

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). Molybdenum is also produced
by Sierrita, Bagdad and Morenci. 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 reached its
targeted mining rate of 635,000 metric tons of ore per day in March 2011
after commencing a staged ramp up from the 2009 mining rate of 450,000
metric tons per day. In addition, FCX restarted the Morenci mill in
March 2010 to process available sulfide material currently being mined.
Mill throughput averaged 48,300 metric tons of ore per day during the
first quarter of 2011 and is expected to increase to approximately
50,000 metric tons per day by the second half of 2011. The increased
mining and milling activities are expected to enable copper production
to increase by approximately 125 million pounds per year beginning in
2011. During the first quarter of 2011, FCX commenced a feasibility
study to add additional mining and milling capacity at Morenci to
process additional sulfide ores identified through positive exploratory
drilling in recent years. The project, which would require significant
investment, would increase milling rates to approximately 115,000 metric
tons of ore per day and target 150 to 200 million pounds of incremental
annual copper production within a two to three year timeframe. The study
is expected to be completed in the second half of 2011.

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 by 2012.

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. The start-up is on schedule, with planned
mining and milling rates expected to be achieved by the end of 2013.
Incremental annual production is expected to be 100 million pounds in
2012 and 2013 and 200 million pounds in 2014. Costs for the project
associated with equipment and mill refurbishment are expected to
approximate $150 million.

FCX has completed construction of the $150 million sulphur burner at the
Safford mine, which will provide a more cost effective source of
sulphuric acid used in solution extraction/electrowinning (SX/EW)
operations and lower transportation costs.

Operating Data. Following is summary operating data for the North
America copper mines for the first quarters of 2011 and 2010.

First-quarter 2011 consolidated copper sales in North America of 276
million pounds were lower than first-quarter 2010 sales because of
timing of shipments. As anticipated, production was higher in the first
quarter of 2011, compared to the 2010 period, primarily reflecting
increased mining and milling activities at Morenci.

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 restart of Miami and Chino and potential
expansion of Morenci are expected to further increase production in
future periods.

As anticipated, North America unit site production and delivery costs
were higher in the first quarter of 2011, compared to the first quarter
of 2010, primarily because of increased mining and milling activities
and higher input costs. First-quarter 2011 unit net cash costs benefited
from higher molybdenum by-product credits.

Based on current operating plans, assuming an average molybdenum price
of $15 per pound for the remainder of 2011 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 $1.47 per pound of copper for the year 2011. Unit net
cash costs for 2011 would change by approximately $0.04 per pound for
each $2 per pound change in the average price of molybdenum for the
remainder of 2011.

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. During the first quarter of
2011, El Abra commenced production from its newly commissioned stacking
and leaching facilities to transition from oxide to sulfide ores.
Production from the sulfide ore, which is projected to reach design
levels in the second half of 2011, would approximate 300 million pounds
of copper per year, substantially replacing the currently depleting
oxide copper production. The aggregate 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
2011. In addition, FCX is engaged in pre-feasibility studies for a
potential large-scale milling operation to process additional sulfide
material and to achieve higher recoveries.

FCX is progressing its evaluation of a large-scale concentrator
expansion at Cerro Verde. Significant reserve additions in recent years
have provided opportunities to expand significantly the existing
facility′s capacity. A range of expansion options have been considered,
and FCX is targeting a project to increase mill throughput from 120,000
metric tons of ore per day to 360,000 metric tons per day, making Cerro
Verde one of the world′s largest concentrating operations. Following
completion of the feasibility study in the second quarter of 2011, FCX
expects to file an environmental impact assessment in the second half of
2011.

Operating Data. Following is summary operating data for the South
America mining operations for the first quarters of 2011 and 2010.

Copper sales from South America mining operations of 312 million pounds
in the first quarter of 2011 were slightly higher than first-quarter
2010 sales of 307 million pounds, primarily reflecting higher ore grades
at Candelaria and increased mill throughput at Cerro Verde, partly
offset by anticipated lower mining rates at El Abra as it transitions
from oxide to sulfide ores.

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.

As anticipated, South America unit site production and delivery costs
for the first quarter of 2011 were higher than the year-ago period,
principally reflecting higher input costs, including materials, energy
and currency exchange rates, partly offset by higher volumes. Average
unit net cash costs of $1.13 per pound in the first quarter of 2011 were
lower than $1.18 per pound for the first quarter of 2010, primarily
reflecting higher molybdenum and gold credits.

Using current 2011 sales volume and cost estimates and assuming average
prices of $1,400 per ounce of gold and $15 per pound of molybdenum for
the remainder of 2011, FCX estimates that average unit net cash costs
(net of molybdenum and gold credits) for its South America mining
operations would approximate $1.19 per pound of copper for the year 2011.

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 projects in
process in the Grasberg minerals district, primarily related to the
development of the large-scale, high-grade underground ore bodies
located beneath and nearby the Grasberg open pit. In aggregate, these
underground ore bodies are expected to ramp up to approximately 240,000
metric tons of ore per day following the currently anticipated
transition from 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 a
feasibility study for the Deep Mill Level Zone (DMLZ), which is expected
to start up as the DOZ depletes, has been completed. 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. 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 DMLZ ore bodies is in
progress. 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.

Operating Data. Following is summary operating data for the
Indonesia mining operations for the first quarters of 2011 and 2010.

Indonesia reported slightly lower copper sales in the first quarter of
2011, compared to the first quarter of 2010, primarily because of timing
of shipments. Gold sales in the first quarter of 2011 approximated
first-quarter 2010 sales. First-quarter 2011 copper and gold sales were
significantly above the January 2011 estimates because of improved pit
slope conditions, which enabled access to ore previously expected to be
mined in future periods. 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.

Because of recent revisions to its Grasberg mine plans, FCX expects 2011
sales to approximate 1.1 billion pounds of copper and 1.5 million ounces
of gold, which reflect increases of approximately 40 million pounds and
approximately 130 thousand ounces compared to the January 2011 estimates.

Indonesia unit site production and delivery costs were higher in the
first quarter of 2011, compared to the first quarter of 2010, primarily
because of higher maintenance and other input costs. Unit net cash costs
averaged a net credit of $0.16 per pound in the first quarter of 2011,
compared to a net cost of $0.10 per pound for the first quarter of 2010,
primarily reflecting higher gold credits.

Assuming an average gold price of $1,400 per ounce for the remainder of
2011 and using current 2011 sales volume and cost estimates, FCX expects
PT-FI′s average unit net cash costs, including gold and silver credits,
to approximate $0.38 per pound of copper for the year 2011. Unit net
cash costs for 2011 would change by approximately $0.06 per pound for
each $50 per ounce change in the average price of gold for the remainder
of 2011. Quarterly unit net cash costs will vary significantly with
variations in quarterly metal sales volumes.

Africa Mining. FCX holds 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. The
Tenke mine includes surface mining, leaching and SX/EW operations.
Copper production from the Tenke mine is sold as copper cathode. In
addition to copper, the Tenke mine produces cobalt hydroxide.

In October 2010, the government of the DRC announced the conclusion of
the review of Tenke Fungurume Mining′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, which were signed by
the parties in December 2010. In March 2011, the amendments were
approved by a ministerial council; and a Presidential Decree, signed by
the President and Prime Minister of the DRC, was issued in April 2011.
After giving effect to the modifications that will be made to TFM′s
bylaws to reflect the agreement of the parties, FCX′s effective
ownership percentage in the project will be 56.0 percent, compared to
its current ownership interest of 57.75 percent.

Operating and Development Activities. 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 first
quarter of 2011, mill throughput averaged 10,800 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
average annual copper production will approximate 290 million pounds.

FCX continues to engage in drilling activities, exploration analyses and
metallurgical testing to evaluate the potential of the highly
prospective minerals 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 the
second phase, FCX is completing studies to expand the mill rate to
14,000 metric tons of ore per day and construct related processing
facilities that would target the addition of approximately 150 million
pounds of copper per year in an approximate two-year timeframe. FCX
expects production volumes from the project to expand significantly over
time.

Operating Data. Following is summary operating data for the
Africa mining operations for the first quarters of 2011 and 2010.

Tenke Fungurume reported lower copper sales in the first quarter of
2011, compared to the first quarter of 2010, primarily because of timing
of shipments.

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.

Tenke Fungurume′s unit site production and delivery costs for the first
quarter of 2011 were higher than the first quarter of 2010, principally
reflecting increased mining and milling activities and higher input
costs. Average unit net cash costs of $0.86 per pound in the first
quarter of 2011 were lower than $1.04 per pound for the first quarter of
2010, primarily reflecting higher cobalt credits.

Assuming an average cobalt price of $14 per pound for the remainder of
2011 and using current 2011 sales volume and cost estimates, average
unit net cash costs are expected to approximate $0.93 per pound of
copper for the year 2011. Each $2 per pound change in the average price
of cobalt for the remainder of 2011 would impact unit net cash costs by
approximately $0.06 per pound of copper.

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 also sells molybdenum produced from its
North and South America copper mines.

Development Activities. Construction activities at the Climax
molybdenum mine are approximately 60 percent complete. Recent activities
include continuation of mill equipment assembly, commencement of
flotation cell placement and refurbishment of the primary crusher. FCX
plans to advance construction and conduct mine preparation activities
throughout 2011, with construction expected to be complete by early
2012. 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 $350 million.

Operating Data. Following is summary operating data for the
Molybdenum operations for the first quarters of 2011 and 2010.

Consolidated molybdenum sales from mines were higher in the first
quarter of 2011, compared to the first quarter of 2010, primarily
reflecting improved demand in the chemical and metallurgical sectors.

For the year 2011, FCX expects molybdenum sales from its mines to
approximate 73 million pounds (including production of approximately 45
million pounds from the North and South America copper mines), compared
to 67 million pounds in 2010 (including production of 32 million pounds
from the North and South America copper mines).

Unit net cash costs at the Henderson primary molybdenum mine were higher
in the first quarter of 2011, compared to the first quarter of 2010,
primarily because of increased input costs, including labor and
materials. Using current 2011 sales volume and cost estimates, FCX
expects average unit net cash costs for its Henderson mine to
approximate $7.25 per pound of molybdenum for the year 2011.

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

Exploration spending in 2011 is expected to approximate $225 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 minerals districts.

PROVISIONAL PRICING AND OTHER

For the first quarter of 2011, 57 percent of FCX′s mined copper was sold
in concentrate, 22 percent as rod from North America operations and 21
percent as cathode. Under the long-established structure of sales
agreements prevalent in the industry, substantially all of FCX′s copper
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) monthly
average spot 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.
LME spot copper prices averaged $4.38 per pound during the first quarter
of 2011, compared to FCX′s recorded average price of $4.31 per pound.

At December 31, 2010, 417 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 $4.36 per pound.
Lower prices during the first quarter of 2011 resulted in unfavorable
adjustments to these provisionally priced copper sales and decreased
first-quarter 2011 consolidated revenues by $10 million ($4 million to
net income attributable to common stock or less than $0.01 per share).
Unfavorable adjustments to the December 31, 2009, provisionally priced
copper sales decreased first-quarter 2010 consolidated revenues by $4
million ($2 million to net income attributable to common stock or less
than $0.01 per share).

At March 31, 2011, FCX had copper sales of 464 million pounds of copper
at its copper mining operations (net of intercompany sales and
noncontrolling interests) priced at an average of $4.27 per pound,
subject to final pricing over the next several months. Each $0.05 change
from the March 31, 2011, average price for provisionally priced copper
sales would have an approximate $15 million effect on FCX′s 2011 net
income attributable to common stock. The LME spot copper price on April
19, 2011, was $4.21 per pound.

FCX defers recognizing profits on its PT-FI and South America sales to
Atlantic Copper and on 25 percent of PT-FI′s sales to PT Smelting,
PT-FI′s 25 percent-owned Indonesian smelting unit, until final sales to
third parties occur. FCX′s net deferred profits on PT-FI and South
America concentrate inventories at Atlantic Copper and PT Smelting to be
recognized in future periods′ net income attributable to common stock
totaled $249 million at March 31, 2011. Changes in FCX′s net deferrals
attributable to variability in intercompany volumes resulted in
reductions to net income attributable to common stock totaling $15
million, $0.02 per share, in the first quarter of 2011 and $48 million,
$0.05 per share, for the first quarter 2010. 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, CASH and DEBT

Operating cash flows totaled $2.4 billion for the first quarter of 2011.
Cash used in investing activities for the first quarter of 2011
reflected capital expenditures of $505 million.

At March 31, 2011, FCX had consolidated cash of $4.1 billion, excluding
$1.2 billion of restricted cash. Net of noncontrolling interests′ share,
taxes and other costs, cash available to the parent company totaled $3.2
billion as shown below (in billions):

At March 31, 2011, FCX had $4.8 billion in debt. After giving effect to
the April 1, 2011, redemption of $1.1 billion in FCX′s 8.25% Senior
Notes due 2015, which was funded with restricted cash, total debt
approximated $3.7 billion.

On March 30, 2011, FCX entered into a new senior unsecured revolving
credit facility, which replaced the revolving credit facilities that
were scheduled to mature in March 2012. The new revolving credit
facility is available until March 30, 2016, in an aggregate principal
amount of $1.5 billion, with $500 million available to PT-FI. FCX had no
borrowings and $43 million of letters of credit issued under its
revolving credit facility resulting in total availability of
approximately $1.5 billion at March 31, 2011.

After taking into account the April 1, 2011, redemption of the 8.25%
Senior Notes, FCX has repaid approximately $3.7 billion in debt
(approximately 50 percent) since January 1, 2009, resulting in estimated
annual interest savings of approximately $260 million based on current
interest rates. FCX expects to record an approximate $49 million charge
to net income attributable to common stock in the second quarter of 2011
in connection with the April 1, 2011, senior note redemption. FCX′s debt
maturities through 2013 are indicated in the table below (in millions).

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

OUTLOOK

Projected consolidated sales volumes for 2011 approximate 3.9 billion
pounds of copper, 1.6 million ounces of gold and 73 million pounds of
molybdenum, including 965 million pounds of copper, 365 thousand ounces
of gold and 17 million pounds of molybdenum in the second quarter of
2011.

Using 2011 sales volume and cost estimates and assuming average prices
of $4.25 per pound of copper, $1,400 per ounce of gold and $15 per pound
of molybdenum for the remainder of 2011, FCX′s consolidated operating
cash flows are estimated to approximate $8.3 billion in 2011. The impact
of price changes for the remainder of 2011 on FCX′s 2011 operating cash
flows would approximate $125 million for each $0.05 per pound change in
the average price of copper, $50 million for each $50 per ounce change
in the average price of gold and $60 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 December 2010, FCX′s Board of Directors declared a two-for-one stock
split of its common stock. On February 1, 2011, shareholders received
one additional share of common stock for each share of common stock
held. After taking the stock split into account, the annual dividend
rate is $1.00 per share ($0.25 per share quarterly).

FCX also announced today that its Board of Directors declared a
supplemental common stock dividend of $0.50 per share to be paid on June
1, 2011, to shareholders of record as of May 15, 2011. The supplemental
dividend to be paid in June represents an addition to FCX′s regular
quarterly common stock dividend of $0.25 per share. Based on
approximately 947 million shares currently outstanding, the June 2011
supplemental dividend payment will approximate $474 million.

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

WEBCAST INFORMATION

A conference call with securities analysts to discuss FCX′s
first-quarter 2011 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, May 20, 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 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 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, liquidity,
other financial commitments and tax rates, the impact of copper, gold,
molybdenum and cobalt price changes, 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 of dividends is at
the discretion of FCX′s Board of Directors (the Board) and will depend
on FCX′s financial results, cash requirements, future prospects, and
other factors deemed relevant by the Board.

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, the resolution of administrative disputes in the Democratic
Republic of Congo, 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, 2010, 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 VI, which is available on FCX′s
website, 'www.fcx.com.?