Freeport-McMoRan Copper & Gold Inc. Reports Third-Quarter and Nine-Month 2011 Results

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

? Net income attributable to common stock for third-quarter 2011
was $1.1 billion, $1.10 per share, compared with net income of $1.2
billion, $1.24 per share, for third-quarter 2010. Net income
attributable to common stock for the first nine months of 2011 was $3.9
billion, $4.10 per share, compared with $2.7 billion, $2.94 per share,
for the first nine months of 2010.

? Consolidated sales from mines for third-quarter 2011 totaled
947 million pounds of copper, 409 thousand ounces of gold and 19 million
pounds of molybdenum, compared with 1.1 billion pounds of copper, 497
thousand ounces of gold and 17 million pounds of molybdenum for
third-quarter 2010.

? Consolidated sales from mines for the year 2011 are expected to
approximate 3.8 billion pounds of copper, 1.6 million ounces of gold and
78 million pounds of molybdenum, including 915 million pounds of copper,
305 thousand ounces of gold and 18 million pounds of molybdenum for
fourth-quarter 2011.

? Consolidated unit net cash costs (net of by-product credits)
averaged $0.80 per pound of copper for third-quarter 2011, compared with
$0.82 per pound for third-quarter 2010. Based on current 2011 sales
volume and cost estimates and assuming average prices of $1,600 per
ounce for gold and $14 per pound for molybdenum for fourth-quarter 2011,
consolidated unit net cash costs (net of by-product credits) are
estimated to average $0.95 per pound of copper for the year 2011.

? Operating cash flows totaled $1.8 billion for third-quarter
2011 and $5.9 billion for the first nine months of 2011, compared with
$1.3 billion for third-quarter 2010 and $4.2 billion for the first nine
months of 2010. Based on current 2011 sales volume and cost estimates
and assuming average prices of $3.25 per pound for copper, $1,600 per
ounce for gold and $14 per pound for molybdenum for fourth-quarter 2011,
operating cash flows are estimated to approximate $7 billion for the
year 2011.

? Capital expenditures totaled $717 million for third-quarter
2011 and $1.7 billion for the first nine months of 2011, compared with
$350 million for third-quarter 2010 and $877 million for the first nine
months of 2010. Capital expenditures are expected to approximate $2.6
billion for the year 2011, including $1.4 billion for major projects and
$1.2 billion for sustaining capital.

? At September 30, 2011, total debt approximated $3.5 billion and consolidated
cash approximated $5.1 billion. During the first nine months of
2011, FCX repaid $1.2 billion in debt and paid common stock dividends
totaling $1.2 billion.

Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) reported third-quarter
2011 net income attributable to common stock of $1.1 billion, $1.10 per
share, compared with $1.2 billion, $1.24 per share, for third-quarter
2010. For the first nine months of 2011, FCX reported net income
attributable to common stock of $3.9 billion, $4.10 per share, compared
with $2.7 billion, $2.94 per share, for the first nine months of 2010.

James R. Moffett, Chairman of the Board, and Richard C. Adkerson,
President and Chief Executive Officer, said, 'Our third-quarter 2011
results reflect strong operating performance and favorable markets for
our products.While the near-term economic outlook is uncertain
and has resulted in a decline in copper prices over the last several
weeks, the fundamentals of our business are strong and we have a
positive view of the long-term market fundamentals.As we address
union labor issues at our mines, our strategy continues to focus on
effective execution of our operating plans, aggressive cost management
and investing in projects with attractive rates of return to enhance our
global portfolio of large-scale, long-lived and high-quality assets.'

OPERATIONS

Consolidated. Third-quarter 2011 consolidated copper sales of 947
million pounds were slightly higher than the July 2011 estimate of 940
million pounds primarily because of timing of shipments in North
America. As anticipated, third-quarter 2011 copper sales were lower than
third-quarter 2010 sales primarily because of lower sales in Indonesia
and South America, partly offset by higher North America sales.

Third-quarter 2011 consolidated gold sales of 409 thousand ounces were
slightly below the July 2011 estimate of 415 thousand ounces and lower
than third-quarter 2010 sales of 497 thousand ounces, primarily
reflecting lower Grasberg production.

Third-quarter 2011 consolidated molybdenum sales of 19 million pounds
were higher than the July 2011 estimate of 18 million pounds and
third-quarter 2010 sales of 17 million pounds.

During third-quarter 2011, production and sales of copper and gold were
adversely affected by labor disruptions at PT Freeport Indonesia
(PT-FI). The estimated impact on third-quarter 2011 production,
including the eight-day strike in July 2011 and the ongoing strike that
commenced on September 15, 2011, totaled approximately 70 million pounds
of copper and 100 thousand ounces of gold. Without the impacts of the
strike, third-quarter 2011 sales from Grasberg would have exceeded
forecasted production and sales because of access to higher grade ore
previously scheduled to be mined in future periods. PT-FI has developed
revised operating plans to produce and ship concentrates at modified
levels with a reduced workforce and sold concentrate from inventory
during third-quarter 2011, which partly mitigated the lower production
levels.

The union has notified PT-FI that it intends to extend the strike to
November 15, 2011. PT-FI continues to seek to end the strike, which has
no legal basis, and to conclude negotiations, on a fair and reasonable
basis, of the bi-annual renewal of its collective labor agreement.
PT-FI's compensation practices are highly competitive in Indonesia, and
PT-FI has agreed to accept the recommendations of the
government-appointed mediator for a generous increase in wages and other
benefits.

Consolidated sales from mines for the year 2011 are expected to
approximate 3.8 billion pounds of copper, 1.6 million ounces of gold and
78 million pounds of molybdenum, including 915 million pounds of copper,
305 thousand ounces of gold and 18 million pounds of molybdenum in
fourth-quarter 2011. Fourth-quarter 2011 sales estimates reflect reduced
operations at PT-FI resulting from the current strike conditions. The
impact for the year 2011, which is subject to change based on operating
rates, mine plans, the extent to which PT-FI can operate using a reduced
workforce, and the timing of the resumption of normal operations, is
estimated to approximate 100 million pounds of copper and 100 thousand
ounces of gold.

Consolidated average unit net cash costs (net of by-product credits) of
$0.80 per pound of copper in third-quarter 2011 were lower than unit net
cash costs of $0.82 per pound in third-quarter 2010 as higher gold,
molybdenum and silver credits more than offset higher site production
and delivery costs. Higher site production and delivery costs primarily
reflected lower copper sales volumes in Indonesia and South America and
increased mining and milling activities in North America.

Assuming average prices of $1,600 per ounce of gold and $14 per pound of
molybdenum for fourth-quarter 2011 and achievement of current 2011 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 approximately $0.95 per pound of copper for the year 2011.
Quarterly unit net cash costs vary with fluctuations in sales volumes
and average realized prices for gold and molybdenum. Fourth-quarter 2011
unit net cash costs are expected to be higher than the average for the
year primarily reflecting lower volumes in Indonesia. The impact of
price changes on consolidated unit net cash costs would approximate
$0.006 per pound for each $50 per ounce change in the average price of
gold during fourth-quarter 2011 and $0.004 per pound for each $2 per
pound change in the average price of molybdenum during fourth-quarter
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. 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, the Morenci, Bagdad and
Sierrita mines also produce molybdenum concentrates.

Operating and Development Activities. During 2010, FCX initiated
plans to increase production at its North America copper mines, which
had been curtailed in late 2008 because of weak market conditions. The
projects included restarting milling operations and increasing mining
rates at Morenci and Chino, and restarting the Miami mine. The project
at Morenci is complete with an incremental impact of 125 million pounds
of copper per year, and the ramp up of activities at Miami and Chino are
continuing. Production at Miami currently approximates 60 million pounds
of copper per year. Production at Chino, which is expected to produce
approximately 70 million pounds of copper in 2011, is expected to
increase to approximately 200 million pounds of copper per year by 2014.

FCX also has a number of opportunities to invest in additional
production capacity at several of its North America copper mines.
Positive exploration results in recent years indicate the potential for
additional sulfide development in North America.

At Morenci, FCX is advancing a feasibility study to expand mining and
milling capacity to process additional sulfide ores identified through
positive exploratory drilling. This project, which would require
significant investment, would increase milling rates from the current
level of 50,000 metric tons of ore per day to approximately 115,000
metric tons of ore per day and target incremental annual copper
production of approximately 225 million pounds within a three year
timeframe. Completion of the feasibility study is expected in early 2012.

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

Consolidated copper sales volumes from North America of 307 million
pounds in third-quarter 2011 were higher than third-quarter 2010 sales
of 267 million pounds primarily reflecting increased production at the
Morenci, Miami and Chino mines.

FCX expects sales from the North America copper mines to approximate 1.2
billion pounds of copper for the year 2011, compared with 1.1 billion
pounds of copper in 2010.

As anticipated, average unit net cash costs (net of by-product credits)
for the North America copper mines of $1.42 per pound of copper in
third-quarter 2011 were higher than unit net cash costs of $1.36 per
pound in third-quarter 2010, primarily reflecting increased mining and
milling activities and higher input costs. Higher molybdenum credits
partly offset the increase in site production and delivery costs.

FCX estimates that average unit net cash costs (net of by-product
credits) for the North America copper mines would approximate $1.42 per
pound of copper for the year 2011, based on current sales volume and
cost estimates and assuming an average molybdenum price of $14 per pound
for fourth-quarter 2011. North America's average unit net cash costs for
2011 would change by approximately $0.01 per pound for each $2 per pound
change in the average price of molybdenum during fourth-quarter 2011.

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 80 percent of 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. During 2011, FCX commenced
production from El Abra's newly commissioned stacking and leaching
facilities to transition from oxide to sulfide ores. Production from the
sulfide ore is expected to approximate 300 million pounds of copper per
year, replacing the currently depleting oxide copper production. The
aggregate capital investment for this project is expected to total $725
million through 2015, including $580 million for the initial phase of
the project expected to be completed by the end of 2011.

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. Positive exploration results
at El Abra indicate the potential for a significant sulfide resource.
Exploration activities are continuing.

At Cerro Verde, plans for a large-scale concentrator expansion continue
to be advanced. The approximate $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 beginning in
2016. FCX expects to file an environmental impact assessment in
fourth-quarter 2011.

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

Copper sales from South America mining of 322 million pounds in
third-quarter 2011 were lower than third-quarter 2010 sales of 377
million pounds primarily reflecting lower production at Candelaria and
the timing of shipments.

During third-quarter 2011, Cerro Verde's union workforce commenced a
series of strike actions. The most recent strike commenced on September
29, 2011. Cerro Verde is working in good faith to complete negotiations
with the workers' union for a new labor agreement. Production of copper
and molybdenum has not been materially affected.

FCX expects South America's sales to approximate of 1.3 billion pounds
of copper and 100 thousand ounces of gold for the year 2011, similar to
2010 sales of 1.3 billion pounds of copper and 93 thousand ounces of
gold.

Average unit net cash costs (net of by-product credits) for South
America of $1.15 per pound of copper in third-quarter 2011 were higher
than unit net cash costs of $1.13 per pound in third-quarter 2010.
Higher site production and delivery costs primarily reflected lower
copper sales volumes, partly offset by higher gold, molybdenum and
silver credits.

FCX estimates that average unit net cash costs (net of by-product
credits) for South America mining would approximate $1.17 per pound of
copper for the year 2011, based on current sales volume and cost
estimates and assuming average prices of $1,600 per ounce of gold and
$14 per pound of molybdenum during fourth-quarter 2011.

Indonesia Mining. Through its 90.64 percent owned and wholly
consolidated subsidiary 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 a capacity of 80,000 metric tons of ore per
day and a feasibility study for the Deep Mill Level Zone (DMLZ) has been
completed. The high-grade Big Gossan mine, which began producing in
fourth-quarter 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 $635 million ($500
million net to PT-FI) per year on underground development activities.

Operating Data. Following is summary consolidated operating data
for the Indonesia mining operations for the third quarters and first
nine months of 2011 and 2010:

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. Indonesia's
third-quarter 2011 copper sales of 253 million pounds and gold sales of
384 thousand ounces were lower than third-quarter 2010 copper sales of
364 million pounds and gold sales of 466 thousand ounces primarily
because of planned sequencing of mining in a lower ore-grade section of
the Grasberg open pit and the impact of labor disruptions during the
quarter. The estimated impact from labor disruptions on third-quarter
2011 production, including the eight-day strike in July 2011 and the
ongoing strike that commenced on September 15, 2011, totaled
approximately 70 million pounds of copper and 100 thousand ounces of
gold. PT-FI has developed revised operating plans to produce and ship
concentrates at modified levels with a reduced workforce and also sold
concentrate from inventory during third-quarter 2011, which partly
mitigated the lower production levels.

FCX expects sales from Indonesia to approximate 1.0 billion pounds of
copper and 1.45 million ounces of gold for the year 2011, compared with
1.2 billion pounds of copper and 1.8 million ounces of gold for the year
2010. Indonesia's fourth-quarter 2011 sales estimates of 185 million
pounds of copper and 280 thousand ounces of gold reflect the impact of
labor disruptions and expected mining in a lower ore-grade section of
the Grasberg open pit. The impact of labor disruptions for the year
2011, which is subject to change based on operating rates, mine plans,
the extent to which we can operate using a reduced workforce, and the
timing of resumption of normal operations, is estimated to approximate
100 million pounds of copper and 100 thousand ounces of gold.

Because of the fixed nature of a large portion of Indonesia's costs,
unit costs vary from quarter to quarter depending on volumes of copper
and gold sold, as well as average realized gold prices during the
period. Unit net cash costs (including gold and silver credits) for
Indonesia averaged a net credit of $0.48 per pound of copper in
third-quarter 2011, compared to a net cost of $0.10 per pound in
third-quarter 2010. The favorable variance was primarily associated with
higher gold and silver credits that more than offset increases in site
production and delivery costs primarily from lower copper volumes.

FCX estimates Indonesia's average unit net cash costs (net of gold and
silver credits) would approximate $0.03 per pound of copper for the year
2011, based on current sales volume and cost estimates and assuming an
average gold price of $1,600 per ounce during fourth-quarter 2011.
Indonesia's unit net cash costs for 2011 would change by approximately
$0.025 per pound for each $50 per ounce change in the average price of
gold during fourth-quarter 2011. Fourth-quarter 2011 unit net cash costs
are expected to be higher than the average for the year primarily
because of lower volumes.

Africa Mining. FCX currently holds an effective 57.75 percent
interest in the Tenke Fungurume (Tenke) copper and cobalt mining
concessions in the Katanga province of the Democratic Republic of Congo
(DRC). In addition to copper, the Tenke mine produces cobalt hydroxide.
Tenke's operations are consolidated in FCX's financial statements. FCX's
interest in Tenke will be reduced to 56 percent after receiving the
required government approval of the modifications to Tenke Fungurume
Mining's bylaws that reflect the agreement with the DRC government.

Operating and Development Activities. The milling facilities at
Tenke, which were designed to produce at a rate of 8,000 metric tons of
ore per day, have performed above capacity, with throughput averaging
12,000 metric tons of ore per day in third-quarter 2011 and 10,800
metric tons of ore per day for the first nine months of 2011. Mining
rates have been increased to enable additional copper production from
the initial project capacity of 250 million pounds per year to
approximately 290 million pounds per year.

FCX is undertaking a second phase of the project, which would include
optimizing the current plant and increasing capacity. As part of the
second phase, FCX plans to expand the mill rate to 14,000 metric tons of
ore per day and to construct related processing facilities that would
target the addition of approximately 150 million pounds of copper per
year. The approximate $850 million project, which includes mill
upgrades, additional mining equipment, a new tankhouse and sulphuric
acid plant expansion, is targeted for completion in 2013.

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.

Operating Data. Following is summary consolidated operating data
for the Africa mining operations for the third quarters and first nine
months of 2011 and 2010:

Copper sales from Africa of 65 million pounds in third-quarter 2011 were
lower than third-quarter 2010 copper sales of 73 million pounds
primarily reflecting the timing of shipments.

FCX expects Africa's sales to approximate 275 million pounds of copper
and 25 million pounds of cobalt for the year 2011, compared with 262
million pounds of copper and 20 million pounds of cobalt for the year
2010.

Unit net cash costs (net of cobalt credits) for Africa of $1.12 per
pound of copper were higher than unit net cash costs of $0.86 per pound
in third-quarter 2010, primarily reflecting lower cobalt credits and
higher site production and delivery costs from increased mining and
milling activity and higher input costs.

FCX estimates Africa's average unit net cash costs would approximate
$1.03 per pound of copper for the year 2011, based on current sales
volume and cost estimates and assuming an average cobalt price of $14
per pound for fourth-quarter 2011. Africa's unit net cash costs for 2011
would change by approximately $0.03 per pound for each $2 per pound
change in the average price of cobalt during fourth-quarter 2011.

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

Development Activities. Construction activities at the Climax
molybdenum mine are approximately 80 percent complete. FCX plans to
commence production during 2012. Production from the Climax molybdenum
mine is expected to ramp up to a rate of 20 million pounds per year
during 2013 and, depending on market conditions, may be increased to 30
million pounds per year. FCX intends to operate the Climax and Henderson
molybdenum mines in a flexible manner to meet market requirements. FCX
believes that Climax 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. Estimated remaining
costs for the initial phase of the project approximate $135 million.

Operating Data. Following is summary consolidated operating data
for the Molybdenum operations for the third quarters and first nine
months of 2011 and 2010:

Consolidated molybdenum sales of 19 million pounds in third-quarter 2011
were higher than third-quarter 2010 sales of 17 million pounds.

For the year 2011, FCX expects molybdenum sales to approximate 78
million pounds (including production of approximately 45 million pounds
from the North and South America copper mines), compared with 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 mine of $6.24 per pound of
molybdenum in third-quarter 2011 were higher than unit net cash costs of
$5.94 per pound in third-quarter 2010, primarily reflecting higher input
costs, including labor and materials.

Based on current sales volume and cost estimates, FCX expects average
unit net cash costs for the Henderson mine to approximate $6.50 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 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 2011 is expected to approximate $250
million, compared with $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 nine months of 2011, 55 percent of FCX's mined copper was
sold in concentrate, 22 percent as rod from North America operations and
23 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 month (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 $4.07 per pound during third-quarter
2011, compared to FCX's recorded average price of $3.60 per pound.

At June ?30, ?2011, FCX had provisionally priced copper sales at its
copper mining operations, primarily South America and Indonesia,
totaling 435 million pounds (net of intercompany sales and
noncontrolling interests) recorded at an average of $4.27 per pound.
Lower prices during third-quarter 2011 resulted in adjustments to these
provisionally priced copper sales and unfavorably impacted third-quarter
2011 consolidated revenues by $213 million ($100 million to net income
attributable to common stock or $0.11 per share), compared with
adjustments to the June ?30, ?2010, provisionally priced copper sales that
favorably impacted third-quarter 2010 consolidated revenues by $191
million ($85 million to net income attributable to common stock or $0.09
per share). Adjustments to the December ?31, ?2010, provisionally priced
copper sales unfavorably impacted consolidated revenues by $12 million
($5 million to net income attributable to common stock or $0.01 per
share) for the first nine months of 2011, compared with adjustments to
the December ?31, ?2009, provisionally priced copper sales that
unfavorably impacted consolidated revenues by $23 million ($9 million to
net income attributable to common stock or $0.01 per share) for the
first nine months of 2010.

At September ?30, ?2011, FCX had provisionally priced copper sales at its
copper mining operations, primarily South America and Indonesia,
totaling 406 million pounds of copper (net of intercompany sales and
noncontrolling interests) recorded at an average of $3.18 per pound,
subject to final pricing over the next several months. FCX estimates
that each $0.05 change in the price realized from the
September ?30, ?2011, provisional price recorded would have an approximate
$13 million effect on its 2011 net income attributable to common stock.
The LME spot copper price on October ?18, ?2011, was $3.30 per pound.

FCX defers recognizing profits on its sales from its Indonesia and South
America mining operations to Atlantic Copper and on 25 percent of
Indonesia's mining 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 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 $101 million at September ?30, ?2011. 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 $1.8 billion for third-quarter
2011 and $5.9 billion for the first nine months of 2011. These amounts
are net of working capital sources (uses) of $256 million for the third
quarter and $(126) million for the nine-month period.

Based on current 2011 sales volume and cost estimates and assuming
average prices of $3.25 per pound of copper, $1,600 per ounce of gold
and $14 per pound of molybdenum for fourth-quarter 2011, FCX's
consolidated operating cash flows are estimated to approximate $7
billion for the year 2011. The impact of price changes during
fourth-quarter 2011 on operating cash flows would approximate $75
million for each $0.10 per pound change in the average price of copper,
$10 million for each $50 per ounce change in the average price of gold
and $10 million for each $2 per pound change in the average price of
molybdenum.

Capital expenditures, including capitalized interest, totaled $717
million for third-quarter 2011 and $1.7 billion for the first nine
months of 2011. FCX's capital expenditures are currently estimated to
approximate $2.6 billion for the year 2011, including $1.4 billion for
major projects and $1.2 billion for sustaining capital. Major projects
for 2011 primarily include 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.
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 September 30, 2011, FCX had consolidated cash of $5.1 billion. Net of
noncontrolling interests' share, taxes and other costs, cash available
to the parent company totaled $4.2 billion as shown below (in billions):

At September 30, 2011, FCX had $3.5 billion in debt. FCX had no
borrowings and $44 million of letters of credit issued under its
revolving credit facility resulting in total availability of
approximately $1.5 billion at September 30, 2011. Since January 1, 2009,
FCX has repaid $3.8 billion in debt resulting in estimated annual
interest savings of approximately $260 million based on current interest
rates.

FCX does not have significant debt maturities in the near term (a total
of $4 million through 2016); however, FCX may consider opportunities to
prepay debt in advance of scheduled maturities. FCX has $3.0 billion in
debt that 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.

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 addition to FCX's current annual common stock dividend of
$1.00 per share ($0.25 per share quarterly), on June 1, 2011, FCX paid a
supplemental common stock dividend of $0.50 per share. For the first
nine months of 2011, FCX has paid common stock dividends of $1.2
billion, which includes $474 million for the supplemental dividend paid
on June 1, 2011. 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
third-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,
November ?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 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, 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, 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.

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 potential effects of violence in Indonesia, the resolution of
administrative disputes in the Democratic Republic of Congo, weather-
and climate-related risks, labor relations, including the resolution of
labor negotiations and strikes in Indonesia and Peru, 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 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 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 (credits) 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 available on FCX's
website, 'www.fcx.com.?