Freeport-McMoRan Copper & Gold Inc. Reports Second-Quarter and Six-Month 2012 Results

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

• Net income attributable to common stock for second-quarter 2012
  was $710 million, $0.74 per share, compared with net income of $1.4
  billion, $1.43 per share, for second-quarter 2011. Net income
  attributable to common stock for the first six months of 2012 was $1.5
  billion, $1.55 per share, compared with $2.9 billion, $3.00 per share,
  for the first six months of 2011.
  
• Consolidated sales from mines for second-quarter 2012 totaled
  927 million pounds of copper, 266 thousand ounces of gold and 20
  million pounds of molybdenum, compared with 1.0 billion pounds of
  copper, 356 thousand ounces of gold and 21 million pounds of
  molybdenum for second-quarter 2011.
  
• Consolidated sales from mines for the year 2012 are expected to
  approximate 3.6 billion pounds of copper, 1.1 million ounces of gold
  and 81 million pounds of molybdenum, including 885 million pounds of
  copper, 225 thousand ounces of gold and 20 million pounds of
  molybdenum for third-quarter 2012.
  
• Consolidated unit net cash costs (net of by-product credits)
  averaged $1.49 per pound of copper for second-quarter 2012, compared
  with $0.93 per pound for second-quarter 2011. Based on current 2012
  sales volume and cost estimates and assuming average prices of $1,600
  per ounce for gold and $13 per pound for molybdenum for the second
  half of 2012, consolidated unit net cash costs (net of by-product
  credits) are estimated to average $1.47 per pound of copper for the
  year 2012.
  
• Operating cash flows totaled $1.2 billionfor
  second-quarter 2012 and $2.0 billion (net of $774 million in working
  capital uses and other tax payments) for the first six months of 2012,
  compared with $1.7 billion for second-quarter 2011 and $4.0 billion
  (net of $382 million in working capital uses and other tax payments)
  for the first six months of 2011. Based on current 2012 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 for
  the second half of 2012, operating cash flows are estimated to
  approximate $4.0 billion for the year 2012 (net of an estimated $1.2
  billion in working capital uses and other tax payments).
  
• Capital expenditures totaled $840 million for second-quarter
  2012 and $1.5 billion for the first six months of 2012, compared with
  $527 million for second-quarter 2011 and $1.0 billion for the first
  six months of 2011. Capital expenditures are expected to approximate
  $4.0 billion for the year 2012, including $2.5 billion for major
  projects and $1.5 billion for sustaining capital.
  
• 
  During second-quarter 2012, the Climax molybdenum mine began
  commercial production. Production from the Climax mine is expected to
  ramp up to a rate of 20 million pounds of molybdenum per year during
  2013.
  
• 
  At June ?30, 2012, consolidated cash approximated $4.5
  billionand total debt approximated $3.5 billion.
  
• 
  In May 2012, FCX paid a quarterly common stock dividend of
  $0.3125 per share, following the February 2012 authorization by the
  Board of Directors to increase the annual dividend rate to $1.25 per
  share.
  

Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) reported second-quarter
2012 net income attributable to common stock of $710 million, $0.74 per
share, compared with $1.4 billion, $1.43 per share, for second-quarter
2011. Second-quarter 2012 net income included charges for environmental
obligations and related litigation reserves totaling $53 million ($0.06
per share), compared with $40 million ($0.04 per share) in
second-quarter 2011. For the first six months of 2012, FCX reported net
income attributable to common stock of $1.5 billion, $1.55 per share,
compared with $2.9 billion, $3.00 per share, for the first six months of
2011.

James R. Moffett, Chairman of the Board, and Richard C. Adkerson,
President and Chief Executive Officer, said, 'Our second-quarter results
reflect our global team's focus on achieving strong operating results in
a safe and efficient fashion, and the pursuit of opportunities to grow
our production and large resource base.We are on track to
increase our annual copper production by more than 25 percent over the
next three years through financially attractive brownfield investments.
We are positive about the long-term fundamentals of the metals we
produce, our geographically diverse portfolio of large-scale operations
with long-lived reserves and mineral resources, and the strong track
record of our team to execute our plans.'

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.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).

^c.Includes charges for adjustments to environmental
obligations and related litigation reserves totaling $66 million ($53
million to net income or $0.06 per share) for the second quarter and
first six months of 2012 and $49 million ($40 million to net income or
$0.04 per share) for the second quarter and first six months of 2011.

^d.Includes losses on early extinguishment of debt
totaling $54 million ($0.06 per share) in second-quarter 2011, $149
million ($0.16 per share) for the first six months of 2012 and $60
million ($0.06 per share) for the first six months of 2011.

^e. Includes working capital uses and other tax payments of
$54 million for second-quarter 2012, $496 million for second-quarter
2011, $774 million for the first six months of 2012 and $382 million for
the first six months of 2011.

^f.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
available on FCX's website, 'www.fcx.com.'

OPERATIONS

Consolidated. Second-quarter 2012 consolidated sales of 927
million pounds of copper and 266 thousand ounces of gold were higher
than the April 2012 estimates of 895 million pounds of copper and 235
thousand ounces of gold primarily reflecting higher copper sales volumes
in North America and higher gold sales volumes in Indonesia, principally
timing related. Second-quarter 2012 consolidated sales were lower than
second-quarter 2011 sales of 1.0 billion pounds of copper and 356
thousand ounces of gold primarily reflecting lower ore grades and
production rates in Indonesia. Lower copper sales volumes also reflected
lower ore grades in South America, partly offset by increased production
in North America and Africa.

Operations and productivity at PT Freeport Indonesia have continued to
improve following the first-quarter 2012 work interruptions in
connection with efforts to resume normal operations. PT Freeport
Indonesia's milling rates averaged 179,500 metric tons of ore per day in
second-quarter 2012, compared with the first-quarter 2012 average of
114,800 metric tons of ore per day. Mining operations in the Grasberg
open pit are approaching normal levels and underground mining operations
at the Deep Ore Zone (DOZ) underground mine continue to be ramped up
following the 2011 work stoppages. Mining rates at the DOZ underground
mine averaged 45,400 metric tons per day in second-quarter 2012 and are
expected to reach 80,000 metric tons per day in fourth-quarter 2012.

Second-quarter 2012 consolidated molybdenum sales of 20 million pounds
approximated the April 2012 estimate of 20 million pounds and
second-quarter 2011 sales of 21 million pounds.

Consolidated sales from mines for the year 2012 are expected to
approximate 3.6 billion pounds of copper, 1.1 million ounces of gold and
81 million pounds of molybdenum, including 885 million pounds of copper,
225 thousand ounces of gold and 20 million pounds of molybdenum in
third-quarter 2012. FCX's revised 2012 estimates are lower than previous
estimates reported in April by approximately 85 million pounds of copper
and 60 thousand ounces of gold primarily because of mine sequencing
changes and slower underground ramp-up at PT Freeport Indonesia and
revisions to El Abra production.

As anticipated, consolidated average unit net cash costs (net of
by-product credits) of $1.49 per pound of copper in second-quarter 2012
were higher than unit net cash costs of $0.93 per pound in
second-quarter 2011 primarily because of lower volumes in Indonesia,
higher mining rates in North America and lower by-product credits.

Quarterly unit net cash costs will vary with fluctuations in sales
volumes and average realized prices for gold and molybdenum. Assuming
average prices of $1,600 per ounce of gold and $13 per pound of
molybdenum for the second half of 2012 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 $1.47 per pound of copper for the year 2012.
Projected unit net cash costs for 2012 are slightly higher than previous
estimates reported in April primarily because of lower by-product
credits. The impact of price changes for the second half of 2012 on
consolidated unit net cash costs would approximate $0.01 per pound for
each $50 per ounce change in the average price of gold and $0.01 per
pound for each $2 per pound change in the average price of molybdenum.
Assuming consistent commodity price assumptions, unit net cash costs for
2013 are expected to be lower than 2012 because of projected increased
copper and gold volumes at Grasberg.

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 milling operations and increasing mining rates at Morenci and
Chino, and restarting the Miami mine. Ramp up activities at Chino are
continuing, with annual production of approximately 250 million pounds
of copper targeted in 2014. FCX continues to evaluate a number of
opportunities to invest in additional production capacity at several of
its North America copper mines. Exploration results in recent years
indicate the potential for significant additional sulfide development in
North America.

At Morenci, FCX completed a feasibility study to expand mining and
milling capacity to process additional sulfide ores identified through
exploratory drilling. The approximate $1.4 billion project would target
incremental annual production of approximately 225 million pounds of
copper in 2014 through an increase in 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 mining rates from the current level of
700,000 short tons per day to 900,000 short tons per day. FCX has
commenced initial construction and engineering, and procurement
activities are in progress.

Operating Data. Following is summary consolidated operating data
for the North America copper mines for the second quarters and first six
months of 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 and also include tolling revenues at Sierrita.

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

Consolidated copper sales volumes from North America of 361 million
pounds in second-quarter 2012 were higher than second-quarter 2011 sales
of 331 million pounds primarily reflecting increased production at Chino
and Safford.

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 $1.62 per pound of copper in
second-quarter 2012 were higher than unit net cash costs of $1.36 per
pound in second-quarter 2011 reflecting increased mining rates and lower
molybdenum credits, partly offset by higher volumes.

FCX estimates that average unit net cash costs (net of by-product
credits) for the North America copper mines would approximate $1.65 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
for the second half of 2012. North America's average unit net cash costs
for 2012 would change by approximately $0.02 per pound for each $2 per
pound change in the average price of molybdenum for the second half of
2012.

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. During 2011, FCX commenced
production from El Abra's 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.

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 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 and 15 million
pounds of molybdenum beginning in 2016. An environmental impact
assessment was filed in fourth-quarter 2011. Permitting is being
advanced and engineering and procurement of long-lead items are in
progress.

Operating Data. Following is summary consolidated operating data
for the South America mining operations for the second quarters and
first six months of 2012 and 2011:

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

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

Copper sales from South America mining of 301 million pounds in
second-quarter 2012 were lower than second-quarter 2011 sales of 331
million pounds primarily reflecting anticipated lower ore grades at
Cerro Verde and Candelaria, partly offset by increased production at El
Abra.

FCX expects South America's sales to approximate of 1.2 billion pounds
of copper and 100 thousand ounces of gold for the year 2012, compared
with 2011 sales of 1.3 billion pounds of copper and 101 thousand ounces
of gold. Copper sales estimates for South America are approximately 35
million pounds lower than previous estimates reported in April because
of revisions to El Abra production.

As anticipated, average unit net cash costs (net of by-product credits)
for South America of $1.49 per pound of copper in second-quarter 2012
were higher than unit net cash costs of $1.08 per pound in
second-quarter 2011, primarily reflecting lower copper sales volumes,
lower by-product credits and increased mining costs.

FCX estimates that average unit net cash costs (net of by-product
credits) for South America mining would approximate $1.48 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 for the second half of 2012.

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 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 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. Over the next
five years, estimated aggregate capital spending on these projects is
expected to average $700 million per year ($550 million per year net to
PT Freeport Indonesia). Considering the long-term nature and large size
of these projects, actual costs could differ materially from these
estimates.

The high-grade Big Gossan underground mine, which began producing in
fourth-quarter 2010, is expected to reach full rates of 7,000 metric
tons of ore per day in 2013. Substantial progress has been made in
developing infrastructure and underground workings that will enable
access to the underground ore bodies. Development of both the Grasberg
Block Cave and Deep Mill Level Zone spurs is advancing, and the
tunneling required to reach these underground ore bodies is complete.

Operating Data. Following is summary consolidated operating data
for the Indonesia mining operations for the second quarters and first
six months of 2012 and 2011:

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

Indonesia's second-quarter 2012 copper sales of 183 million pounds and
gold sales of 247 thousand ounces were significantly lower than
second-quarter 2011 copper sales of 265 million pounds and gold sales of
330 thousand ounces, primarily reflecting anticipated lower ore grades
and production rates.

Operations and productivity at PT Freeport Indonesia have continued to
improve following the first-quarter 2012 work interruptions in
connection with efforts to resume normal operations. PT Freeport
Indonesia's milling rates averaged 179,500 metric tons of ore per day in
second-quarter 2012, compared with the first-quarter 2012 average of
114,800 metric tons of ore per day. Mining operations in the Grasberg
open pit are approaching normal levels and underground mining operations
at the DOZ underground mine continue to be ramped up following the 2011
work stoppages. Mining rates at the DOZ underground mine averaged 45,400
metric tons per day in second-quarter 2012 and are expected to reach
80,000 metric tons per day in fourth-quarter 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. FCX
expects sales from Indonesia to approximate 750 million pounds of copper
and 960 thousand ounces of gold for the year 2012, compared with 846
million pounds of copper and 1.3 million ounces of gold for the year
2011. PT Freeport Indonesia's revised sales estimates for 2012 are lower
than previous estimates reported in April by approximately 50 million
pounds of copper and 60 thousand ounces of gold because of a deferral of
access to high-grade material in the open pit to future periods and a
slower than expected ramp-up of the DOZ underground mine. FCX expects
sales from Indonesia to increase in 2013 as PT Freeport Indonesia gains
access to higher ore grades.

Indonesia's unit net cash costs (including gold and silver credits) of
$1.37 per pound of copper in second-quarter 2012 were higher than unit
net cash costs of $0.22 per pound in second-quarter 2011 primarily
reflecting lower sales volumes.

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. FCX estimates Indonesia's average unit net cash costs (net of
gold and silver credits) would approximate $1.24 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 for the second half
of 2012. Projected unit net cash costs for 2012 are higher than previous
estimates reported in April primarily because of lower copper sales
volumes and lower by-product credits. Indonesia's unit net cash costs
for 2012 would change by approximately $0.04 per pound for each $50 per
ounce change in the average price of gold for the second half of 2012.
FCX expects Indonesia's unit net cash costs to decline significantly in
future years, compared to the year 2012, because of higher projected
copper and gold volumes.

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. 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 12,900 metric tons of ore per day in second-quarter 2012 and
12,500 metric tons of ore per day for the first six months of 2012.
Higher mining rates have increased copper production from the initial
project capacity of 250 million pounds per year to approximately 290
million pounds per year.

FCX is constructing a second phase of the project, which would include
optimizing the current plant and increasing capacity. FCX plans to
expand 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 in 2013.
The approximate $850 million project includes mill upgrades, additional
mining equipment, a new tankhouse and a sulphuric acid plant expansion.
Construction activities are progressing well and are expected to be
completed by year-end 2012.

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.

Operating Data. Following is summary consolidated operating data
for the Africa mining operations for the second quarters and first six
months of 2012 and 2011:

^a.Includes adjustments for 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
available on FCX's website, 'www.fcx.com.'

Copper sales from Africa of 82 million pounds in second-quarter 2012
were higher than second-quarter 2011 copper sales of 75 million pounds
primarily reflecting higher mining and milling rates.

FCX expects Africa's sales to approximate 310 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.

Africa's unit net cash costs (net of cobalt credits) of $1.22 per pound
of copper in second-quarter 2012 were higher than unit net cash costs of
$0.94 per pound in second-quarter 2011 primarily reflecting lower cobalt
credits, partly offset by higher copper volumes.

FCX estimates Africa's average unit net cash costs would approximate
$1.16 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 for the second half of 2012. Africa's unit net cash costs for
2012 would change by approximately $0.06 per pound for each $2 per pound
change in the average price of cobalt for the second half of 2012.

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.

Development Activities. Construction activities at the Climax
molybdenum mine, which included the installation of a 25,400 metric ton
per day mill facility, mining equipment and environmental management
systems, is substantially complete. During second-quarter 2012, the
operation began commercial production. Production from Climax is
expected to ramp up to a rate of 20 million pounds of molybdenum per
year during 2013 and, depending on market conditions, may be increased
to 30 million pounds of molybdenum per year. 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 second quarters and first six
months of 2012 and 2011:

^a.Reflects production at the Henderson molybdenum mine.
The 2012 periods also include production of 1 million pounds from the
Climax molybdenum mine beginning in May 2012.

^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
available on FCX's website, 'www.fcx.com.'

Consolidated molybdenum sales of 20 million pounds in second-quarter
2012 were slightly lower than second-quarter 2011 sales of 21 million
pounds. For the year 2012, FCX expects molybdenum sales to approximate
81 million pounds (including production of approximately 42 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 $6.83 per pound of
molybdenum in second-quarter 2012 were higher than unit net cash costs
of $6.21 per pound in second-quarter 2011 primarily reflecting lower
volumes.

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.

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. 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 to $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 first six months of 2012, 43 percent of FCX's mined copper was
sold in concentrate, 29 percent as rod from North America operations and
28 percent as cathode. Under the long-established structure of sales
agreements prevalent in the industry, copper contained in concentrates
and cathodes 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.
LME spot copper prices averaged $3.57 per pound during second-quarter
2012, compared to FCX's average realized price of $3.53 per pound.

At March ?31, 2012, FCX had provisionally priced copper sales at its
copper mining operations, primarily South America and Indonesia,
totaling 214 million pounds (net of intercompany sales and
noncontrolling interests) recorded at an average price of $3.83 per
pound. Lower prices during second-quarter 2012 resulted in adjustments
to these provisionally priced copper sales and unfavorably impacted
second-quarter 2012 consolidated revenues by $75 million ($31 million to
net income attributable to common stock or $0.03 per share), compared
with adjustments to the March ?31, 2011, provisionally priced copper
sales that unfavorably impacted second-quarter 2011 consolidated
revenues by $47 million ($23 million to net income attributable to
common stock or $0.02 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 first six months of 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 first six months of 2011.

At June ?30, 2012, FCX had provisionally priced copper sales at its
copper mining operations, primarily South America and Indonesia,
totaling 329 million pounds of copper (net of intercompany sales and
noncontrolling interests) recorded at an average of $3.49 per pound,
subject to final pricing over the next several months. FCX estimates
that each $0.05 change in the price realized from the June ?30, 2012,
provisional price recorded would have an approximate $22 million effect
on its 2012 consolidated revenues ($11 million to net income
attributable to common stock). The LME spot copper price closed at $3.45
per pound on July ?18, 2012.

FCX defers recognizing profits on its sales from its Indonesia, South
America, North America and Africa 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, South America and North America concentrate inventories at
Atlantic Copper and PT Smelting to be recognized in future periods' net
income attributable to common stock totaled $52 million at June ?30,
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. As PT Freeport Indonesia's
sales volumes increase in the second half of 2012, 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 $1.2 billion for second-quarter
2012 and $2.0 billion for the first six months of 2012. These amounts
were net of working capital uses and other tax payments of $54 million
for the second quarter and $774 million for the six-month period.

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 for the second half of 2012, FCX's consolidated
operating cash flows are estimated to approximate $4.0 billion for the
year 2012 (net of an estimated $1.2 billion in working capital uses and
other tax payments). The impact of price changes for the second half of
2012 on operating cash flows would approximate $80 million for each
$0.05 per pound change in the average price of copper, $25 million for
each $50 per ounce change in the average price of gold and $40 million
for each $2 per pound change in the average price of molybdenum.

Capital expenditures, including capitalized interest, totaled $840
million for second-quarter 2012 and $1.5 billion for the first six
months of 2012. FCX's capital expenditures are currently estimated to
approximate $4.0 billion for the year 2012 (including $2.5 billion for
major projects and $1.5 billion for sustaining capital). Major projects
for 2012 primarily include underground development activities at
Grasberg and the expansion projects at Tenke, 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 June ?30, 2012, FCX had consolidated cash of $4.5 billion. Net of
noncontrolling interests' share, taxes and other costs, cash available
to the parent company totaled $3.4 billion as shown below (in billions):

^a.Includes cash at FCX's parent company and North
America operations.

At June ?30, 2012, 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 June ?30, 2012.

In first-quarter 2012, FCX sold $3.0 billion of senior notes in three
tranches with a weighted average interest rate of approximately three
percent. FCX used the proceeds from this offering (plus cash on hand),
to redeem the remaining $3.0 billion of its 8.375% Senior Notes. Annual
interest cost savings associated with this refinancing approximates $160
million. Annual interest cost savings associated with this transaction
and debt repayments since January 1, 2009, approximate $420 million per
year, based on current interest rates.

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's current annual dividend rate is $1.25 per share
($0.3125 per share quarterly). FCX paid common stock dividends of $535
million for the first six months of 2012. 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
second-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, August ?17,
2012.

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 Democratic Republic of Congo.
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, 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 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 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
FCX's 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 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 available on FCX's website, 'www.fcx.com.'