Freeport-McMoRan Copper & Gold Inc. Reports Third-Quarter and Nine-Month 2012 Results

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

• Net income attributable to common stock for third-quarter 2012
  was $824 million, $0.86 per share, compared with net income of $1.1
  billion, $1.10 per share, for third-quarter 2011. Net income
  attributable to common stock for the first nine months of 2012 was
  $2.3 billion, $2.41 per share, compared with $3.9 billion, $4.10 per
  share, for the first nine months of 2011.
  
• Consolidated sales from mines for third-quarter 2012 totaled
  922 million pounds of copper, 202 thousand ounces of gold and 21
  million pounds of molybdenum, compared with 947 million pounds of
  copper, 409 thousand ounces of gold and 19 million pounds of
  molybdenum for third-quarter 2011.
  
• Consolidated sales from mines for the year 2012 are expected to
  approximate 3.6 billion pounds of copper, 1.0 million ounces of gold
  and 82 million pounds of molybdenum, including 930 million pounds of
  copper, 255 thousand ounces of gold and 20 million pounds of
  molybdenum for fourth-quarter 2012. Consolidated sales from mines for
  the year 2013 are expected to total 4.3 billion pounds of copper, 1.4
  million ounces of gold and 90 million pounds of molybdenum.
  
• Consolidated unit net cash costs (net of by-product credits)
  averaged $1.62 per pound of copper for third-quarter 2012, compared
  with $0.80 per pound for third-quarter 2011. Based on current 2012
  sales volume and cost estimates and assuming average prices of $1,700
  per ounce for gold and $11 per pound for molybdenum for fourth-quarter
  2012, consolidated unit net cash costs (net of by-product credits) are
  estimated to average approximately $1.50 per pound of copper for the
  year 2012.
  
• Operating cash flows totaled $526 millionfor
  third-quarter 2012 (net of $765 million in working capital uses and
  other tax payments) and $2.5 billion (net of $1.5 billion in working
  capital uses and other tax payments) for the first nine months of
  2012, compared with $1.8 billion for third-quarter 2011 (including
  $256 million of working capital sources and other tax payments) and
  $5.9 billion (net of $126 million in working capital uses and other
  tax payments) for the first nine months of 2011. Based on current 2012
  sales volume and cost estimates and assuming average prices of $3.70
  per pound for copper, $1,700 per ounce for gold and $11 per pound for
  molybdenum for fourth-quarter 2012, operating cash flows are estimated
  to approximate $4.0 billion for the year 2012 (net of an estimated
  $1.4 billion in working capital uses and other tax payments).
  
• Capital expenditures totaled $971 million for third-quarter
  2012 and $2.5 billion for the first nine months of 2012, compared with
  $717 million for third-quarter 2011 and $1.7 billion for the first
  nine months of 2011. Capital expenditures are expected to approximate
  $3.6 billion for the year 2012, including $2.2 billion for major
  projects and $1.4 billion for sustaining capital.
  
• 
  At September ?30, 2012, consolidated cash totaled $3.7
  billionand total debt totaled $3.5 billion.
  

Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) reported third-quarter
2012 net income attributable to common stock of $824 million, $0.86 per
share, compared with $1.1 billion, $1.10 per share, for third-quarter
2011. Third-quarter 2012 net income included net credits for adjustments
to Cerro Verde's deferred income taxes and to FCX's environmental
obligations and related litigation reserves totaling $168 million ($0.18
per share), compared with net charges totaling $73 million ($0.07 per
share) for third-quarter 2011. For the first nine months of 2012, FCX
reported net income attributable to common stock of $2.3 billion, $2.41
per share, compared with $3.9 billion, $4.10 per share, for the first
nine months of 2011.

James R. Moffett, Chairman of the Board, and Richard C. Adkerson,
President and Chief Executive Officer, said, 'Our global team continues
to focus on execution of our plans to achieve efficient and safe
production, effective cost management, investment in financially
attractive projects and identification of additional reserves and
resources. ?Our third quarter results reflect production growth in North
America and Africa, offset by anticipated lower ore grades in Indonesia.
As we look forward, we are on track to achieve meaningful increases in
our production of copper as we return to higher grade ores at Grasberg
and through the execution of brownfield expansions in the Americas and
Africa, expected to add one billion pounds of copper annually over the
next three years. ?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 net (credits) charges for adjustments to
environmental obligations and related litigation reserves totaling $(85)
million ($(68) million to net income attributable to common stockholders
or $(0.07) per share) for third quarter 2012, $29 million ($23 million
to net income attributable to common stockholders or $0.02 per share)
for third-quarter 2011, $(19) million ($(16) million to net income
attributable to common stockholders or $(0.02) per share) for the first
nine months of 2012 and $78 million ($63 million to net income
attributable to common stockholders or $0.07 per share) for the first
nine months of 2011.}

^{d. The 2012 periods include a net credit of $100 million, net of
noncontrolling interests ($0.11 per share) associated with adjustments
to Cerro Verde's deferred income taxes. The 2011 periods include a
charge of $50 million, net of noncontrolling interests ($0.05 per share)
for additional taxes associated with Cerro Verde's election to pay a
special mining burden during the remaining term of its current stability
agreement. For further discussion refer to the supplemental schedule,
'Provision for Income Taxes,' on page XXVI, which is available on FCX's
website, 'www.fcx.com.'}

^{e. Includes losses on early extinguishment of debt totaling $149
million ($0.16 per share) for the first nine months of 2012 and $60
million ($0.06 per share) for the first nine months of 2011.}

^{f. Includes working capital (uses) sources and other tax
payments of $(765) million for third-quarter 2012, $256 million for
third-quarter 2011, $(1.5) billion for the first nine months of 2012 and
$(126) million for the first nine months of 2011.}

^{g. 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. Third-quarter 2012 consolidated copper sales of 922
million pounds were higher than the July 2012 estimate of 885 million
pounds primarily reflecting higher production from North America and
Africa and the timing of sales in South America. Third-quarter 2012
consolidated gold sales of 202 thousand ounces were lower than the July
2012 estimate of 225 thousand ounces primarily because of changes to
mine plans at the Grasberg mine in Indonesia, which delayed access to
higher grade material, and a slower than expected ramp-up at the Deep
Ore Zone (DOZ) underground mine. Third-quarter 2012 consolidated copper
and gold sales were lower than third-quarter 2011 sales of 947 million
pounds of copper and 409 thousand ounces of gold primarily reflecting
lower ore grades in Indonesia, partly offset by increased sales in North
America and Africa.

Third-quarter 2012 consolidated molybdenum sales of 21 million pounds
were higher than the July 2012 estimate of 20 million pounds and
third-quarter 2011 sales of 19 million pounds.

Consolidated sales from mines for the year 2012 are expected to
approximate 3.6 billion pounds of copper, 1.0 million ounces of gold and
82 million pounds of molybdenum, including 930 million pounds of copper,
255 thousand ounces of gold and 20 million pounds of molybdenum for
fourth-quarter 2012. Expected gold sales for 2012 are approximately
50,000 ounces less than the July 2012 estimates because of lower gold
production at Grasberg.

As anticipated, consolidated average unit net cash costs (net of
by-product credits) of $1.62 per pound of copper in third-quarter 2012
were higher than unit net cash costs of $0.80 per pound in third-quarter
2011 primarily because of lower volumes in Indonesia (Indonesia unit net
cash costs were $1.65 per pound in third-quarter 2012, compared with a
net credit of $0.48 per pound in third-quarter 2011), lower by-product
credits and higher mining costs.

Quarterly unit net cash costs will vary with fluctuations in sales
volumes and average realized prices for gold and molybdenum. Assuming
average prices of $1,700 per ounce of gold and $11 per pound of
molybdenum for fourth-quarter 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 $1.50 per pound of copper for the year 2012. The
impact of price changes for fourth-quarter 2012 on consolidated unit net
cash costs would approximate $0.004 per pound for each $50 per ounce
change in the average price of gold and $0.004 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 certain mining and milling operations and increasing mining
rates at Morenci and Chino. Ramp up activities at Chino are continuing,
with annual production of approximately 250 million pounds of copper
targeted in 2014. FCX continues to evaluate 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 is engaged in a project to expand mining and milling
capacity to process additional sulfide ores identified through
exploratory drilling. The approximate $1.4 billion project is targeting
incremental annual production of approximately 225 million pounds of
copper in 2014 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
received material permits and has commenced engineering and initial
construction, and procurement activities are in progress.

Operating Data. Following is summary consolidated operating data
for the North America copper mines for the third quarters and first nine
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 331 million
pounds in third-quarter 2012 were higher than third-quarter 2011 sales
of 307 million pounds primarily reflecting increased production at the
Chino mine.

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.

Average unit net cash costs (net of by-product credits) for the North
America copper mines of $1.77 per pound of copper in third-quarter 2012
were higher than unit net cash costs of $1.42 per pound in third-quarter
2011 reflecting lower molybdenum credits and increased mining rates,
partly offset by higher copper volumes.

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 $11 per pound
for fourth-quarter 2012. North America's average unit net cash costs for
2012 would change by approximately $0.01 per pound for each $2 per pound
change in the average price of molybdenum for fourth-quarter 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.

At Cerro Verde, FCX is engaged in a large-scale concentrator expansion.
The approximate $4.4 billion project would expand the concentrator
facilities from 120,000 metric tons of ore per day to 360,000 metric
tons of ore per day and provide incremental annual production of
approximately 600 million pounds of copper and 15 million pounds of
molybdenum beginning in 2016. An environmental impact assessment was
filed in fourth-quarter 2011. Permitting is in an advanced stage and
engineering and procurement of long-lead items is in progress. FCX
expects to commence construction in 2013.

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

Operating Data. Following is summary consolidated operating data
for the South America mining operations for the third quarters and first
nine 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 308 million pounds in
third-quarter 2012 were lower than third-quarter 2011 sales of 322
million pounds, primarily reflecting lower ore grades at Candelaria and
timing of shipments.

FCX expects South America's sales to approximate 1.2 billion pounds of
copper and 95 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.

Average unit net cash costs (net of by-product credits) for South
America of $1.55 per pound of copper in third-quarter 2012 were higher
than unit net cash costs of $1.15 per pound in third-quarter 2011,
primarily reflecting higher mining and input costs, including energy,
lower by-product credits and the timing of profit sharing.

FCX estimates that average unit net cash costs (net of by-product
credits) for South America mining would approximate $1.50 per pound of
copper for the year 2012, based on current sales volume and cost
estimates and assuming average prices of $1,700 per ounce of gold and
$11 per pound of molybdenum for fourth-quarter 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. Substantial
progress is being achieved to establish underground mine development and
infrastructure required for large-scale underground operations.
Development of both the Grasberg Block Cave and Deep Mill Level Zone is
advancing. Access to these underground ore bodies is complete. Over the
next five years, estimated aggregate capital spending on these projects
is currently expected to average $700 million per year ($550 million per
year net to PT Freeport Indonesia).

The high-grade Big Gossan underground mine, which began producing in
fourth-quarter 2010, averaged 1,900 metric tons of ore per day in
third-quarter 2012. Full rates of 7,000 metric tons of ore per day are
expected in 2014.

Operating Data. Following is summary consolidated operating data
for the Indonesia mining operations for the third quarters and first
nine 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 third-quarter 2012 copper sales of 195 million pounds and
gold sales of 178 thousand ounces were lower than third-quarter 2011
copper sales of 253 million pounds and gold sales of 384 thousand
ounces, primarily reflecting anticipated lower ore grades. Third-quarter
2012 sales volumes for copper were similar to the July estimates, but
gold volumes were approximately 10 percent below the July estimates
because of changes to mine plans that delayed access to higher grade
material, and a slower than expected ramp-up at the DOZ underground
mine. The DOZ mine averaged 48,300 metric tons of ore per day in
third-quarter 2012 and is expected to ramp up to 80,000 metric tons of
ore per day in 2013. The slower than anticipated ramp-up reflects more
extensive repairs required following the 2011 suspension of operations.

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 0.7 billion pounds of copper
and 0.9 million 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. Indonesia's current sales estimates for 2012 are approximately 40
million pounds of copper and 45,000 ounces of gold lower than the July
estimates because of mine plan changes in the Grasberg open pit, which
delayed access to higher grade material, and a slower ramp-up of the DOZ
mine. FCX expects sales from Indonesia to increase in the second half of
2013 as PT Freeport Indonesia gains access to higher ore grades.

Indonesia's unit net cash costs (including gold and silver credits) of
$1.65 per pound of copper in third-quarter 2012 were significantly
higher than unit net cash credits of $0.48 per pound in third-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 $1.34 per pound of copper for
the year 2012, based on current sales volume and cost estimates and
assuming an average gold price of $1,700 per ounce for fourth-quarter
2012. Indonesia's unit net cash costs for 2012 would change by
approximately $0.02 per pound for each $50 per ounce change in the
average price of gold for fourth-quarter 2012. Assuming consistent
commodity price assumptions, Indonesia's unit net cash costs for future
periods are expected to be lower than 2012, as PT Freeport Indonesia
accesses higher grade ore beginning in the second half of 2013.

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. FCX is nearing completion
of a second phase of the project, which includes optimizing the current
plant and increasing capacity. FCX is expanding the mill rate to 14,000
metric tons of ore per day and is completing construction of the related
processing facilities that 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 substantially complete by
year-end 2012. The addition of a second sulphuric acid plant is expected
to be completed in 2015.

During third-quarter 2012, Tenke achieved record mining, milling and
copper production rates. Improved performance and the second phase
expansion are expected to enable copper production to exceed 400 million
pounds for the year 2013, compared with initial design capacity of 250
million pounds per year.

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 third quarters and first nine
months of 2012 and 2011:

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

^{b. Net of cobalt downstream processing and freight costs.}

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

Copper sales from Africa of 88 million pounds in third-quarter 2012 were
higher than third-quarter 2011 copper sales of 65 million pounds
primarily reflecting higher mining and milling rates principally related
to the ramp-up of the second phase expansion.

FCX expects Africa's sales to approximate 330 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 $1.23 per pound
of copper in third-quarter 2012 were higher than unit net cash costs of
$1.12 per pound in third-quarter 2011, primarily reflecting higher
mining and input costs, including sulphuric acid and energy.

FCX estimates Africa's average unit net cash costs would approximate
$1.25 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 fourth-quarter 2012. Africa's unit net cash costs for 2012
would change by approximately $0.025 per pound for each $2 per pound
change in the average price of cobalt for fourth-quarter 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.

Operating and Development Activities. The newly commissioned
Climax molybdenum mine, which includes a new 25,000 metric ton per day
mill facility, began commercial production in May 2012. Depending on
market conditions, production from Climax may ramp up to a rate of 20
million pounds of molybdenum per year during 2013, with potential to
produce 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 third quarters and first nine
months of 2012 and 2011:

^{a. Molybdenum production from the Climax mine totaled 1 million
pounds in third-quarter 2012 and 2 million pounds for the first nine
months of 2012, reflecting production since the start of commercial
operations in May 2012 (the 2011 periods reflect only production from
the Henderson molybdenum mine).}

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

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

Consolidated molybdenum sales of 21 million pounds in third-quarter 2012
were higher than third-quarter 2011 sales of 19 million pounds. For the
year 2012, FCX expects molybdenum sales to approximate 82 million pounds
(including production of approximately 43 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 $7.11 per pound of
molybdenum in third-quarter 2012 were higher than unit net cash costs of
$6.24 per pound in third-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 $255
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 nine months of 2012, 45 percent of FCX's mined copper was
sold in concentrate, 28 percent as cathode and 27 percent as rod from
North America operations. 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 $3.50 per pound during third-quarter
2012, compared to FCX's average realized price of $3.64 per pound.

At June ?30, 2012, FCX had provisionally priced copper sales at its
copper mining operations, primarily South America and Indonesia,
totaling 329 million pounds (net of intercompany sales and
noncontrolling interests) recorded at an average price of $3.49 per
pound. Adjustments to these provisionally priced copper sales favorably
impacted third-quarter 2012 consolidated revenues by $24 million ($12
million to net income attributable to common stock or $0.01 per share),
compared with adjustments to the June ?30, 2011, provisionally priced
copper sales that unfavorably impacted third-quarter 2011 consolidated
revenues by $213 million ($100 million to net income attributable to
common stock or $0.11 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 nine 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 nine months of 2011.

At September ?30, 2012, FCX had provisionally priced copper sales at its
copper mining operations, primarily South America and Indonesia,
totaling 325 million pounds of copper (net of intercompany sales and
noncontrolling interests) recorded at an average of $3.72 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,
2012, provisional price recorded would have an approximate $23 million
effect on its 2012 consolidated revenues ($11 million to net income
attributable to common stock). The LME spot copper price closed at $3.68
per pound on October ?19, 2012.

FCX defers recognizing profits on sales from its mining operations to
Atlantic Copper and on 25 percent of Indonesia mining's sales to PT
Smelting (PT Freeport Indonesia's 25 percent-owned Indonesian smelting
unit) until final sales to third parties occur. FCX's net deferred
profits on its inventories at Atlantic Copper and PT Smelting to be
recognized in future periods' net income attributable to common stock
totaled $105 million at September ?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.

CASH FLOWS

FCX generated operating cash flows of $526 million for third-quarter
2012 and $2.5 billion for the first nine months of 2012. These amounts
were net of working capital uses and other tax payments of $765 million
for the third quarter and $1.5 billion for the nine-month period.

Based on current sales volume and cost estimates and assuming average
prices of $3.70 per pound of copper, $1,700 per ounce of gold and $11
per pound of molybdenum for fourth-quarter 2012, FCX's consolidated
operating cash flows are estimated to approximate $4.0 billion for the
year 2012 (net of an estimated $1.4 billion in working capital uses and
other tax payments). The impact of price changes for fourth-quarter 2012
on operating cash flows would approximate $80 million for each $0.10 per
pound change in the average price of copper, $20 million for each $100
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 $971
million for third-quarter 2012 and $2.5 billion for the first nine
months of 2012. FCX's capital expenditures are currently estimated to
approximate $3.6 billion for the year 2012 (including $2.2 billion for
major projects and $1.4 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 September ?30, 2012, FCX had consolidated cash of $3.7 billion. Net of
noncontrolling interests' share, taxes and other costs, cash available
to the parent company totaled $2.7 billion as shown below (in billions):

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

At September ?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 September ?30, 2012.

Annual interest cost savings associated with debt repayments since
January 1, 2009, including the first-quarter 2012 refinancing,
approximates $415 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 paid common stock dividends of $832 million during the
first nine months of 2012. FCX's current annual dividend rate for its
common stock is $1.25 per share. On September 26, 2012, FCX's Board of
Directors (the Board) declared a regular quarterly dividend of $0.3125
per share, which will be paid on November 1, 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
third-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, November ?16,
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 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, 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.'