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

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

• Net income attributable to common stock for fourth-quarter 2012
  was $743 million, $0.78 per share, compared with net income of $640
  million, $0.67 per share, for fourth-quarter 2011. Net income
  attributable to common stock for the year 2012 was $3.0 billion, $3.19
  per share, compared with $4.6 billion, $4.78 per share, for the year
  2011.
  
• Consolidated sales from mines for fourth-quarter 2012 totaled
  972 million pounds of copper, 254 thousand ounces of gold and 21
  million pounds of molybdenum, compared with 823 million pounds of
  copper, 133 thousand ounces of gold and 19 million pounds of
  molybdenum for fourth-quarter 2011. Consolidated sales for the year
  2012 totaled 3.65 billion pounds of copper, 1.0 million ounces of gold
  and 83 million pounds of molybdenum, compared with 3.70 billion pounds
  of copper, 1.4 million ounces of gold and 79 million pounds of
  molybdenum for the year 2011.
  
• Consolidated sales from mines for the year 2013 are expected to
  approximate 4.3 billion pounds of copper, 1.4 million ounces of gold
  and 90 million pounds of molybdenum, including 940 million pounds of
  copper, 230 thousand ounces of gold and 23 million pounds of
  molybdenum for first-quarter 2013.
  
• Consolidated unit net cash costs (net of by-product credits)
  averaged $1.54 per pound of copper for fourth-quarter 2012, compared
  with $1.57 per pound for fourth-quarter 2011. Based on current sales
  volume and cost estimates and assuming average prices of $1,700 per
  ounce for gold and $11 per pound for molybdenum, consolidated unit net
  cash costs (net of by-product credits) are estimated to average $1.35
  per pound of copper for the year 2013.
  
• Operating cash flows totaled $1.3 billion for fourth-quarter
  2012 (including $122 million of net working capital sources and other
  tax payments) and $3.8 billion (net of $1.4 billion in working capital
  uses and other tax payments) for the year 2012, compared with $746
  million for fourth-quarter 2011 (net of $335 million in working
  capital uses and other tax payments) and $6.6 billion (net of $461
  million in working capital uses and other tax payments) for the year
  2011. Based on current sales volume and cost estimates and assuming
  average prices of $3.65 per pound for copper, $1,700 per ounce for
  gold and $11 per pound for molybdenum, operating cash flows are
  estimated to approximate $7 billion for the year 2013, excluding
  results of pending acquisitions.
  
• Capital expenditures totaled $976 million for fourth-quarter
  2012 and $3.5 billion for the year 2012, compared with $785 million
  for fourth-quarter 2011 and $2.5 billion for the year 2011. Excluding
  amounts for pending acquisitions, capital expenditures are expected to
  approximate $4.6 billion for the year 2013, including $2.8 billion for
  major projects and $1.8 billion for sustaining capital.
  
• 
  At December ?31, 2012, consolidated cash totaled $3.7
  billion and total debt totaled $3.5 billion.
  
• 
  On December 5, 2012, FCX announced definitive agreements to acquire Plains
  Exploration & Production Company (PXP) and McMoRan
  Exploration Co. (MMR) in transactions totaling $20 billion, which
  would create a premier U.S.-based natural resource company. The
  transactions are expected to close in second-quarter 2013.
  

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

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

SUMMARY FINANCIAL AND OPERATING DATA

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

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

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

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

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

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

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

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

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

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

OPERATIONS

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

b. Net of cobalt downstream processing and freight costs.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

PRELIMINARY RECOVERABLE PROVEN AND PROBABLE RESERVES

FCX has significant reserves, resources and future development
opportunities within its portfolio of assets. FCX's preliminary
estimated consolidated recoverable proven and probable reserves at
December ?31, 2012, include 116.5 billion pounds of copper, 32.5 million
ounces of gold and 3.42 billion pounds of molybdenum, which were
determined using long-term average prices of $2.00 per pound for copper,
$750 per ounce for gold and $10.00 per pound for molybdenum, consistent
with the long-term average prices used at year-end 2011. The preliminary
recoverable proven and probable reserves presented in the table below
represent the estimated metal quantities from which FCX expects to be
paid after application of estimated metallurgical recovery rates and
smelter recovery rates, where applicable. Recoverable reserves are that
part of a mineral deposit, which FCX estimates can be economically and
legally extracted or produced at the time of the reserve determination.

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

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

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

At December ?31, 2012, in addition to preliminary consolidated
recoverable proven and probable reserves, FCX's preliminary estimated
mineralized material (assessed using a long-term average copper price of
$2.20 per pound for copper) totals 113 billion pounds of incremental
contained copper. FCX continues to pursue aggressively opportunities to
convert this mineralized material into reserves, future production
volumes and cash flow.

EXPLORATION ACTIVITIES

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

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

PROVISIONAL PRICING AND OTHER

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

At September ?30, 2012, FCX had provisionally priced copper sales at its
copper mining operations, primarily South America and Indonesia,
totaling 325 million pounds (net of intercompany sales and
noncontrolling interests) recorded at an average of $3.72 per pound.
Lower prices resulted in adjustments to these provisionally priced
copper sales that unfavorably impacted fourth-quarter 2012 consolidated
revenues by $73 million ($31 million to net income attributable to
common stock or $0.03 per share), compared with adjustments to the
September ?30, 2011, provisionally priced copper sales that favorably
impacted fourth-quarter 2011 consolidated revenues by $125 million ($56
million to net income attributable to common stock or $0.06 per share).

Adjustments to the December ?31, 2011, provisionally priced copper sales
favorably impacted consolidated revenues by $101 million ($43 million to
net income attributable to common stock or $0.05 per share) for the year
2012, compared with adjustments to the December ?31, 2010, provisionally
priced copper sales that unfavorably impacted consolidated revenues by
$12 million ($5 million to net income attributable to common stock or
$0.01 per share) for the year 2011.

At December ?31, 2012, FCX had provisionally priced copper sales at its
copper mining operations, primarily South America and Indonesia,
totaling 341 million pounds of copper (net of intercompany sales and
noncontrolling interests) recorded at an average of $3.59 per pound,
subject to final pricing over the next several months. FCX estimates
that each $0.05 change in the price realized from the December ?31, 2012,
provisional price recorded would have an approximate $11 million effect
on 2013 net income attributable to common stock. The LME spot copper
price closed at $3.64 per pound on January ?21, 2013.

FCX defers recognizing profits on its sales from its mining operations
to Atlantic Copper and on 25 percent of Indonesia's sales to PT Smelting
(PT Freeport Indonesia's 25 percent-owned Indonesian smelting unit)
until final sales to third parties occur. FCX's net deferred profits on
its Indonesia and South America concentrate inventories at Atlantic
Copper and PT Smelting to be recognized in future periods' net income
attributable to common stock totaled $121 million at December ?31, 2012.
Refer to the 'Consolidated Statements of Income' on page IV for a
summary of net impacts from changes in these deferrals. Quarterly
variations in ore grades, the timing of intercompany shipments and
changes in product prices will result in variability in FCX's net
deferred profits and quarterly earnings.

CASH FLOWS

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

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

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

CASH AND DEBT

At December ?31, 2012, FCX had consolidated cash of $3.7 billion. Net of
noncontrolling interests' share, taxes and other costs, cash available
to the parent company totaled $2.7 billion as shown below (in billions):

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

At December ?31, 2012, FCX had $3.5 billion in debt. FCX had no
borrowings and $43 million of letters of credit issued under its
revolving credit facility resulting in total availability of $1.5
billion at December ?31, 2012.

FINANCIAL POLICY

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

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

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

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

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

WEBCAST INFORMATION

A conference call with securities analysts to discuss FCX's
fourth-quarter 2012 results is scheduled for today at 10:00 a.m. Eastern
Time. The conference call will be broadcast on the Internet along with
slides. Interested parties may listen to the conference call live and
view the slides by accessing 'www.fcx.com.?
A replay of the webcast will be available through Friday, February ?22,
2013.

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

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

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

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

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

FCX cautions readers that forward-looking statements are not
guarantees of future performance and its actual results may differ
materially from those anticipated, projected or assumed in the
forward-looking statements. Important factors that can cause FCX's
actual results to differ materially from those anticipated in the
forward-looking statements include commodity prices, mine sequencing,
production rates, industry risks, regulatory changes, political risks,
the outcome of ongoing discussions with the Indonesian government, the
potential effects of violence in Indonesia, the resolution of
administrative disputes in the Democratic Republic of Congo, weather-
and climate-related risks, labor relations, environmental risks,
litigation results, currency translation risks, risks associated with
completion of the pending acquisitions, and other factors described in
more detail under the heading 'Risk Factors? in FCX's Annual Report on
Form 10-K for the year ended December ?31, 2011, filed with the U.S.
Securities and Exchange Commission (SEC) as updated by our subsequent
filings with the SEC.

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

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

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

PXP Transaction

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

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

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

MMR Transaction

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

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

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