Freeport-McMoRan Copper & Gold Inc. Reports Fourth-Quarter and Year Ended December ?31, ?2011 Results

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

? Net income attributable to common stock for fourth-quarter 2011
was $640 million, $0.67 per share, compared with net income of $1.5
billion, $1.63 per share, for fourth-quarter 2010. Net income
attributable to common stock for the year 2011 was $4.6 billion, $4.78
per share, compared with $4.3 billion, $4.57 per share, for the year
2010.

? Consolidated sales from mines for fourth-quarter 2011 totaled
823 million pounds of copper, 133 thousand ounces of gold and 19 million
pounds of molybdenum, compared with 941 million pounds of copper, 590
thousand ounces of gold and 17 million pounds of molybdenum for
fourth-quarter 2010. Consolidated sales for the year 2011 totaled 3.7
billion pounds of copper, 1.4 million ounces of gold and 79 million
pounds of molybdenum, compared with 3.9 billion pounds of copper, 1.9
million ounces of gold and 67 million pounds of molybdenum for the year
2010.

? Consolidated sales from mines for the year 2012 are expected to
approximate 3.8 billion pounds of copper, 1.2 million ounces of gold and
80 million pounds of molybdenum, including 875 million pounds of copper,
425 thousand ounces of gold and 20 million pounds of molybdenum for
first-quarter 2012.

? Consolidated unit net cash costs (net of by-product credits)
averaged $1.57 per pound of copper for fourth-quarter 2011, compared
with $0.53 per pound for fourth-quarter 2010, and $1.01 per pound for
the year 2011, compared with $0.79 per pound for the year 2010. Based on
current sales volume and cost estimates and assuming average prices of
$1,600 per ounce for gold and $13 per pound for molybdenum, consolidated
unit net cash costs (net of by-product credits) are estimated to average
$1.38 per pound of copper for the year 2012.

? Operating cash flows totaled $746 million for fourth-quarter
2011 and $6.6 billion for the year 2011, compared with $2.1 billion for
fourth-quarter 2010 and $6.3 billion for the year 2010. Based on current
sales volume and cost estimates and assuming average prices of $3.50 per
pound for copper, $1,600 per ounce for gold and $13 per pound for
molybdenum, operating cash flows are estimated to approximate $4.7
billion for the year 2012.

? Capital expenditures totaled $785 million for fourth-quarter
2011 and $2.5 billion for the year 2011, compared with $535 million for
fourth-quarter 2010 and $1.4 billion for the year 2010. Capital
expenditures are expected to approximate $4.0 billion for the year 2012,
including $2.4 billion for major projects and $1.6 billion for
sustaining capital.

? At December ?31, ?2011, total debt approximated $3.5
billion and consolidated cash approximated $4.8 billion. During
the year 2011, FCX repaid $1.2 billion in debt and paid common stock
dividends totaling $1.4 billion ($1.50 per common share).

? FCX's preliminary estimate of consolidated recoverable proven and
probable reserves at December ?31, ?2011, totaled 119.7 billion pounds
of copper, 33.9 million ounces of gold and 3.42 billion pounds of
molybdenum.

Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) reported fourth-quarter
2011 net income attributable to common stock of $640 million, $0.67 per
share, compared with $1.5 billion, $1.63 per share, for fourth-quarter
2010. For the year 2011, FCX reported net income attributable to common
stock of $4.6 billion, $4.78 per share, compared with $4.3 billion,
$4.57 per share, for the year 2010.

James R. Moffett, Chairman of the Board, and Richard C. Adkerson,
President and Chief Executive Officer, said, 'FCX's fourth-quarter
results reflect strong operating performance in the Americas and in
Africa, and were unfavorably impacted by disruptions at our Grasberg
operations in Indonesia. Despite the fourth-quarter disruptions, we
achieved record financial results in 2011. We are pleased to have
reached agreement with the union at the Grasberg mine and with the
accomplishments of our team in completing pipeline repairs. We are
taking steps to restore full operations. We are continuing to advance
our growth projects which are expected to result in meaningful increases
to copper and molybdenum production in future periods. Our exploration
programs continue to identify opportunities to grow our reserve base. We
ended the year with significantly more cash than debt and have a
positive outlook for the future prospects of our business.'

OPERATIONS

Consolidated. Fourth-quarter 2011 consolidated copper sales of
823 million pounds of copper and 133 thousand ounces of gold were lower
than October 2011 estimates of 915 million pounds of copper and 305
thousand ounces of gold and the fourth-quarter 2010 sales of 941 million
pounds of copper and 590 thousand ounces of gold, primarily because of
labor disruptions and the temporary suspension of milling operations at
PT Freeport Indonesia as a result of damage to the concentrate and fuel
pipelines. Copper and gold sales were higher than the revised December
2011 estimates of 800 million pounds of copper and 105 thousand ounces
of gold, primarily because of higher Grasberg production and timing of
shipments, principally in North America. The estimated impact of the
labor and pipeline disruptions, net to PT Freeport Indonesia, totaled
165 million pounds of copper and 170 thousand ounces of gold for
fourth-quarter 2011, and 235 million pounds of copper and 275 thousand
ounces of gold for the year 2011.

Fourth-quarter 2011 consolidated molybdenum sales of 19 million pounds
were higher than the October 2011 estimate of 18 million pounds and
fourth-quarter 2010 sales of 17 million pounds.

PT Freeport Indonesia's milling operations were temporarily suspended
during fourth-quarter 2011 because of damage to concentrate and fuel
pipelines resulting from civil unrest that occurred during the course of
the strike. The financial terms of a new two-year labor agreement for PT
Freeport Indonesia were reached in mid-December 2011. Repairs to the
damaged pipelines are substantially complete and PT Freeport Indonesia
has begun ramping up production. PT Freeport Indonesia is working
cooperatively with the Government of Indonesia to address security
issues. Maintaining security is a requirement of returning to normal
operations. Mobilization of the workforce is in progress and full
operations are expected to be restored during first-quarter 2012.

Consolidated sales from mines for the year 2012 are expected to
approximate 3.8 billion pounds of copper, 1.2 million ounces of gold and
80 million pounds of molybdenum, including 875 million pounds of copper,
425 thousand ounces of gold and 20 million pounds of molybdenum in
first-quarter 2012. FCX's projected 2012 copper sales volumes are
expected to be higher, compared to 2011, primarily because of higher
production from North America and Indonesia, partly offset by slightly
lower production in South America. Gold sales in 2012 are projected to
be lower than 2011 sales because of mine sequencing in Indonesia.
Molybdenum sales in 2012 are expected to be similar to 2011, with higher
production from primary molybdenum mines offset by lower production from
FCX's North and South America copper mines. The achievement of projected
2012 sales volumes depends on a number of factors, including the timing
of restoring normal operations at Grasberg following the extended
disruption.

As anticipated, consolidated average unit net cash costs (net of
by-product credits) of $1.57 per pound of copper in fourth-quarter 2011
were higher than unit net cash costs of $0.53 per pound in
fourth-quarter 2010 primarily because of lower copper and gold volumes
in Indonesia. Fourth-quarter 2011 consolidated unit net cash costs
include $116 million ($0.14 per pound) primarily related to signing
bonuses for new labor agreements and other employee costs in Indonesia
and South America. Higher unit net cash costs also reflected higher
mining and input costs in North and South America.

Assuming average prices of $1,600 per ounce of gold and $13 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 approximately $1.38 per
pound of copper for the year 2012. Consolidated unit net cash costs for
2012 are expected to be higher than in 2011 because of higher site
production and delivery costs associated with labor, energy and other
inputs, and lower by-product credits, partly offset by higher copper
volumes. Quarterly unit net cash costs vary with fluctuations in sales
volumes and average realized prices for gold and molybdenum. The impact
of price changes on consolidated unit net cash costs would approximate
$0.015 per pound for each $50 per ounce change in the average price of
gold and $0.02 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 (primarily Sierrita, Bagdad and Morenci) 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.
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 activities at Miami and Chino are
continuing. Production at Miami totaled 66 million pounds of copper in
2011 and is expected to be similar in 2012. Production at Chino, which
produced 69 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 the first
half of 2012.

Operating Data. Following is summary consolidated operating data
for the North America copper mines for the fourth quarters and years
ended 2011 and 2010:

Consolidated copper sales volumes from North America of 333 million
pounds in fourth-quarter 2011 were higher than fourth-quarter 2010 sales
of 238 million pounds primarily reflecting increased mining rates and
timing of shipments.

FCX expects sales from the North America copper mines to approximate 1.3
billion pounds of copper for the year 2012, compared with 1.2 billion
pounds of copper in 2011.

As anticipated, average unit net cash costs (net of by-product credits)
for the North America copper mines of $1.48 per pound of copper in
fourth-quarter 2011 were higher than unit net cash costs of $1.33 per
pound in fourth-quarter 2010, primarily reflecting higher site
production and delivery costs associated with increased mining and
milling activities and higher input costs. Higher unit net cash costs
also reflected lower molybdenum credits.

FCX estimates that average unit net cash costs (net of by-product
credits) for the North America copper mines would approximate $1.67 per
pound of copper for the year 2012, based on current sales volume and
cost estimates and assuming an average molybdenum price of $13 per
pound. North America's average unit net cash costs for 2012 would change
by approximately $0.04 per pound for each $2 per pound change in the
average price of molybdenum. Higher projected unit net cash costs in
2012, compared to 2011, primarily reflect higher mining and milling
rates and lower by-product credits associated with lower molybdenum
grades and prices, partly offset by higher projected copper volumes.

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 production of oxide to sulfide ores.
Production from the sulfide ore approximates 300 million pounds of
copper per year, replacing the 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 that is expected to be completed in first-quarter 2012.

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 $4.0 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. An environmental impact
assessment was filed in fourth-quarter 2011.

Operating Data. Following is summary consolidated operating data
for the South America mining operations for the fourth quarters and
years ended 2011 and 2010:

Copper sales from South America mining of 357 million pounds in
fourth-quarter 2011 were higher than fourth-quarter 2010 sales of 340
million pounds primarily reflecting higher production at El Abra and
timing of shipments, partly offset by lower volumes at Cerro Verde.

In fourth-quarter 2011, there was an approximate two-month labor strike
at Cerro Verde during the negotiation of a new labor agreement. The
strike did not have a significant impact on production, and a new
three-year agreement with the union was reached in late December 2011.
Also during fourth-quarter 2011, El Abra negotiated a new four-year
labor agreement with its union, which will replace the agreement
scheduled to expire in July 2012.

FCX expects South America's sales to approximate 1.3 billion pounds of
copper and 100 thousand ounces of gold for the year 2012, similar to
2011 sales of 1.3 billion pounds of copper and 101 thousand ounces of
gold. Lower projected ore grades at Cerro Verde and Candelaria in 2012
are expected to be partly offset by higher production at El Abra.

Average unit net cash costs (net of by-product credits) for South
America of $1.44 per pound of copper in fourth-quarter 2011 were higher
than unit net cash costs of $1.16 per pound in fourth-quarter 2010,
primarily reflecting higher site production and delivery costs
associated with increased mining costs and the impact of the signing
bonuses paid pursuant to new labor agreements.

FCX estimates that average unit net cash costs (net of by-product
credits) for South America mining would approximate $1.41 per pound of
copper for the year 2012, based on current sales volume and cost
estimates and assuming average prices of $1,600 per ounce of gold and
$13 per pound of molybdenum. Higher projected unit net cash costs in
2012, compared to 2011, primarily reflect increases in input costs,
including labor and energy, lower by-product credits and slightly lower
projected volumes.

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.

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 mid-2013. 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 $700 million ($550
million net to PT Freeport Indonesia) per year on underground
development activities.

Operating Data. Following is summary consolidated operating data
for the Indonesia mining operations for the fourth quarters and years
ended 2011 and 2010:

Indonesia's fourth-quarter 2011 copper sales of 50 million pounds and
gold sales of 102 thousand ounces were lower than fourth-quarter 2010
copper sales of 295 million pounds and gold sales of 565 thousand
ounces, reflecting the impact of labor-related disruptions and the
temporary suspension of milling operations because of damage to the
concentrate and fuel pipelines.

The estimated impact of the labor and pipeline disruptions (net to PT
Freeport Indonesia), including the eight-day work stoppage in July 2011,
totaled 165 million pounds of copper and 170 thousand ounces of gold in
fourth-quarter 2011, and 235 million pounds of copper and 275 thousand
ounces of gold for the year 2011.

In December 2011, PT Freeport Indonesia reached an agreement with union
officials to end the three-month strike that commenced on September 15,
2011. Pursuant to the terms, PT Freeport Indonesia agreed to increase
base wages by 24 percent in the first year and by 13 percent in the
second year (equivalent to a 40 percent increase over two-years on a
compounded basis). PT Freeport Indonesia also paid a bonus equivalent to
three months of base wages and agreed to provide other benefits,
including enhancements to housing allowances, educational assistance and
retirement savings plans. The parties also agreed that future wage
negotiations would be based on living costs and the competitiveness of
wages within Indonesia.

FCX expects sales from Indonesia to approximate 930 million pounds of
copper and 1.1 million ounces of gold for the year 2012, compared to
2011 sales of 846 million pounds of copper and 1.3 million ounces of
gold. Gold sales in 2012 are projected to be lower than in 2011 because
of mining in a lower grade section of the Grasberg mine in 2012. At the
Grasberg mine, the sequencing of mining areas with varying ore grades
also causes fluctuations in the timing of ore production resulting in
varying quarterly and annual sales of copper and gold. The achievement
of projected 2012 sales volumes depends on a number of factors,
including the timing of restoring full operations at Grasberg following
the extended disruption.

Unit net cash costs (including gold and silver credits) for Indonesia
averaged $3.57 per pound of copper in fourth-quarter 2011, compared to a
net credit of $0.91 per pound in fourth-quarter 2010, primarily
reflecting lower copper and gold sales volumes and the impact of signing
bonuses and other strike-related costs.

FCX estimates Indonesia's average unit net cash costs (net of gold and
silver credits) would approximate $0.98 per pound of copper for the year
2012, based on current sales volume and cost estimates and assuming an
average gold price of $1,600 per ounce. Indonesia's unit net cash costs
for 2012 would change by approximately $0.06 per pound for each $50 per
ounce change in the average price of gold. Higher projected unit net
cash costs in 2012, compared to 2011, primarily reflect higher input
costs, including labor and energy, and lower by-product credits, partly
offset by higher projected copper volumes. Quarterly unit net cash costs
are expected to vary significantly with variations in quarterly metal
sales 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) and is the operator of Tenke. 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 reached in December 2010 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, continue to perform above capacity, with throughput
averaging 11,900 metric tons of ore per day in fourth-quarter 2011 and
11,100 metric tons of ore per day for the year 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 is expanding the mill rate to 14,000 metric tons of
ore per day and is constructing related processing facilities that would
target the addition of approximately 150 million pounds of copper per
year. Construction activities for the approximate $850 million project,
which includes mill upgrades, additional mining equipment, a new
tankhouse and sulphuric acid plant expansion, are underway and are
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 fourth quarters and years ended
2011 and 2010:

Copper sales from Africa of 83 million pounds in fourth-quarter 2011
were higher than fourth-quarter 2010 copper sales of 68 million pounds
primarily reflecting the timing of shipments and higher production.

FCX expects Africa's sales to approximate 290 million pounds of copper
and 25 million pounds of cobalt for the year 2012, compared with 283
million pounds of copper and 25 million pounds of cobalt for the year
2011.

Unit net cash costs (net of cobalt credits) for Africa of $1.30 per
pound of copper were higher than unit net cash costs of $0.89 per pound
in fourth-quarter 2010, primarily reflecting higher site production and
delivery costs related to higher input costs. Higher unit net cash costs
also reflected lower cobalt credits.

FCX estimates Africa's average unit net cash costs would approximate
$1.13 per pound of copper for the year 2012, based on current sales
volume and cost estimates and assuming an average cobalt price of $12
per pound. Higher projected unit net cash costs in 2012, compared to
2011, primarily reflect lower cobalt credits, partly offset by higher
projected copper volumes. Africa's unit net cash costs for 2012 would
change by approximately $0.11 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 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 substantially complete, and 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. The costs of the
initial phase of the project, most of which have been incurred,
approximate $700 million.

Operating Data. Following is summary consolidated operating data
for the Molybdenum operations for the fourth quarters and years ended
2011 and 2010:

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

For the year 2012, FCX expects molybdenum sales to approximate 80
million pounds (including production of approximately 40 million pounds
from the North and South America copper mines), compared with 79 million
pounds in 2011 (including production of 45 million pounds from the North
and South America copper mines).

Unit net cash costs at the Henderson mine of $6.87 per pound of
molybdenum in fourth-quarter 2011 were higher than unit net cash costs
of $6.36 per pound in fourth-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 $7.00 per
pound of molybdenum for the year 2012.

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, ?2011, include 119.7 billion pounds of copper, 33.9 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. FCX has
added significant reserves in recent years and drilling activities
conducted at its existing mines during 2011 indicated the potential for
significant reserve additions in future periods.

The following table summarizes changes in FCX's estimated preliminary
consolidated recoverable proven and probable copper, gold and molybdenum
reserves during 2011:

At December ?31, ?2011, 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 115 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 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 2012 is expected to approximate $275
million, compared with $221 million in 2011. 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 year 2011, 51 percent of FCX's mined copper was sold in
concentrate, 26 percent as cathode and 23 percent as rod from North
America operations. 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.
During fourth-quarter 2011, LME spot copper prices averaged $3.40 per
pound, compared to FCX's recorded average price of $3.42 per pound.

At September ?30, ?2011, FCX had provisionally priced copper sales at its
copper mining operations, primarily South America and Indonesia,
totaling 406 million pounds (net of intercompany sales and
noncontrolling interests) recorded at an average of $3.18 per pound.
Higher prices resulted in adjustments to these 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), compared with adjustments to the
September ?30, ?2010, provisionally priced copper sales that favorably
impacted fourth-quarter 2010 consolidated revenues by $186 million ($79
million to net income attributable to common stock or $0.08 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 year
2011, compared with adjustments to the December ?31, ?2009, provisionally
priced copper sales that unfavorably impacted consolidated revenues by
$24 million ($10 million to net income attributable to common stock or
$0.01 per share) for the year 2010.

At December ?31, ?2011, FCX had provisionally priced copper sales at its
copper mining operations, primarily South America and Indonesia,
totaling 252 million pounds of copper (net of intercompany sales and
noncontrolling interests) recorded at an average of $3.44 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, ?2011,
provisional price recorded would have an approximate $9 million effect
on 2012 net income attributable to common stock. The LME spot copper
price on January ?18, ?2012, was $3.70 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 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 $42 million at December ?31, ?2011. 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. Additionally, as PT Freeport Indonesia's operations return to
full operating rates, FCX expects to defer a significant amount of PT
Freeport Indonesia's profit on intercompany sales until final sales to
third parties occur.

CASH FLOWS

FCX generated operating cash flows of $746 million for fourth-quarter
2011 and $6.6 billion for the year 2011. These amounts are net of
working capital uses of $335 million for fourth-quarter 2011 and $461
million for the year 2011.

Based on current sales volume and cost estimates and assuming average
prices of $3.50 per pound of copper, $1,600 per ounce of gold and $13
per pound of molybdenum, FCX's consolidated operating cash flows are
estimated to approximate $4.7 billion for the year 2012, net of working
capital uses of $0.8 billion. The impact of price changes on operating
cash flows would approximate $150 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 $90 million for each $2
per pound change in the average price of molybdenum.

Capital expenditures, including capitalized interest, totaled $785
million for fourth-quarter 2011 and $2.5 billion for the year 2011.
FCX's capital expenditures are currently estimated to approximate $4.0
billion for the year 2012, including $2.4 billion for major projects and
$1.6 billion for sustaining capital. Major projects for 2012 primarily
include underground development activities at Grasberg, the expansion at
Tenke Fungurume and the concentrator expansion at Cerro Verde. 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, ?2011, FCX had consolidated cash of $4.8 billion. Net of
noncontrolling interests' share, taxes and other costs, cash available
to the parent company totaled $3.9 billion as shown below (in billions):

At December ?31, ?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 $1.5
billion at December ?31, ?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 year
2011, FCX paid common stock dividends of $1.4 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
fourth-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,
February ?17, ?2012.

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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 in Indonesia, significant mining operations in North and South
America, and the Tenke Fungurume minerals district in the DRC. The
Grasberg minerals district contains the largest single recoverable
copper reserve and the largest single gold reserve of any mine in the
world based on the latest available reserve data provided by third-party
industry consultants. 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, 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. 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 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 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 more frequently than quarterly
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.

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.?