Freeport-McMoRan Copper & Gold Inc. Reports Second-Quarter and Six-Month 2008 Results

One North Central Avenue Phoenix, AZ 85004 Financial Contacts: Media Contact: Kathleen L. Quirk David P. Joint William L. Collier (602) 366-8016 (504) 582-4203 (504) 582-1750 Freeport-McMoRan Copper & Gold Inc. Reports Second-Quarter and Six-Month 2008 Results HIGHLIGHTS Net income applicable to common stock for second-quarter 2008 totaled $947 million, $2.25 per share, compared with $1.1 billion, $2.62 per share, for second-quarter 2007. Net income applicable to common stock for the first six months of 2008 totaled $2.1 billion, $4.89 per share, compared with $1.6 billion, $4.80 per share, for the first six months of 2007. Consolidated sales from mines for second-quarter 2008 totaled 942 million pounds of copper, 265 thousand ounces of gold and 20 million pounds of molybdenum, compared with 1.0 billion pounds of copper, 913 thousand ounces of gold and 15 million pounds of molybdenum for second-quarter 2007. As expected, copper and gold sales volumes were lower than the yearago quarter because of mine sequencing at the Grasberg mine in Papua, Indonesia. Consolidated sales from mines are expected to approximate 4.1 billion pounds of copper, 1.4 million ounces of gold and 75 million pounds of molybdenum for the year 2008, including 1.0 billion pounds of copper, 315 thousand ounces of gold and 18 million pounds of molybdenum for third-quarter 2008. Second-half 2008 copper and gold sales are expected to approximate 2.2 billion pounds and 890 thousand ounces, approximately 400 million pounds and 350 thousand ounces higher than the first half of 2008. Operating cash flows totaled $1.0 billion, net of working capital uses of $765 million, for second-quarter 2008 and $1.6 billion, net of working capital uses of $2.1 billion, for the first six months of 2008. Assuming average prices of $3.75 per pound for copper, $900 per ounce for gold and $30 per pound for molybdenum for the remainder of 2008, operating cash flows in 2008 would approximate $6.0 billion, including approximately $4.4 billion for the second half of 2008. Each $0.20 per pound change in copper prices in the balance of the year would impact 2008 operating cash flows by approximately $300 million. Capital expenditures totaled $655 million for second-quarter 2008 and $1.2 billion for the first six months of 2008. Projected 2008 capital expenditures approximate $3.0 billion, including investments in development projects in the Americas and Indonesia, the Tenke Fungurume greenfield project in Africa and the project to restart the Climax molybdenum mine in Colorado. Total debt approximated $7.4 billion and consolidated cash was $1.6 billion at June 30, 2008. FCX s Board of Directors authorized an increase in the common stock dividend from an annual rate of $1.75 per share to $2.00 per share and expanded the open market share purchase program to 30 million shares from the prior authorization of 20 million shares. Freeport-McMoRan Copper & Gold 1

PHOENIX, AZ, July 22, 2008 Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) reported secondquarter 2008 net income applicable to common stock of $947 million, $2.25 per share, compared with $1.1 billion, $2.62 per share, for the second quarter of 2007. For the six months ended June 30, 2008, FCX reported net income of $2.1 billion, $4.89 per share, compared with $1.6 billion, $4.80 per share, in the 2007 period. The results for the 2007 six-month period include the operations of Phelps Dodge beginning March 20, 2007. James R. Moffett, Chairman of the Board, and Richard C. Adkerson, President and Chief Executive Officer, said, We are progressing our efforts to develop our large mineral positions in the Americas, Africa and Indonesia to their full potential. The results of our efforts are encouraging and we expect success in expanding our reserves and adding to our growth pipeline. We continue to focus on maximizing current production volumes which is enabling us to generate significant cash flows to invest in attractive organic growth projects and provide cash returns to shareholders. Today's Board actions to increase our common stock dividend and expand our share purchase program reflect our financial strength and a positive outlook for our business and markets. SUMMARY FINANCIAL AND OPERATING DATA Second Quarter Six Months 2008 2007 2008 2007 a Financial Data (in millions, except per share amounts) Revenues $5,441 b $5,443 b, c $11,113 b $7,689 b, c Operating income $2,053 d $2,354 c $4,449 d $3,526 c Income from continuing operations applicable to common stock e $947 d, f, g $1,076 c, f, g $2,069 d, f, g $1,548 Net income applicable to common stock e $947 d, f, g $1,104 c, f, g $2,069 d, f, g $1,580 Diluted net income per share of common stock h : Continuing operations $2.25 d, f, g $2.56 c, f, g $4.89 d, f, g $4.71 Discontinued operations - 0.06-0.09 Diluted net income per share of common stock $2.25 d, f, g $2.62 c, f, g $4.89 d, f, g $4.80 Diluted average common shares outstanding h, i 450 446 449 346 Operating cash flows $1,009 j $2,081 j $1,624 j $2,750 j Capital expenditures $655 $530 $1,163 $672 Operating Data Sales from Mines Copper (millions of recoverable pounds) FCX s consolidated share 942 1,010 1,853 1,530 Average realized price per pound $3.85 $3.34 c $3.77 $3.32 c Gold (thousands of recoverable ounces) FCX s consolidated share 265 913 545 1,869 Average realized price per ounce $912 $659 $917 $660 Molybdenum (millions of recoverable pounds) FCX s consolidated share 20 15 40 17 Average realized price per pound $31.59 $24.83 $31.63 $24.68 Note: Disclosures of after-tax amounts throughout this release are calculated by reference to the applicable tax rate. c, f, g c, f, g c, f, g c, f, g Freeport-McMoRan Copper & Gold 2

a. Includes Phelps Dodge results beginning March 20, 2007. b. Includes impacts of adjustments to provisionally priced concentrate and cathode sales recognized in prior periods (see discussion beginning on page 4). c. Includes charges for noncash mark-to-market accounting adjustments on the 2007 copper price protection program totaling $130 million ($80 million to net income or $0.18 per share) and a reduction in average realized copper prices of $0.13 per pound in second-quarter 2007 and $168 million ($103 million to net income or $0.30 per share) and a reduction in average realized copper prices of $0.11 per pound in the first six months of 2007. FCX paid $598 million upon settlement of these contracts in January 2008. FCX does not currently intend to enter into similar hedging programs in the future. d. Includes estimated costs totaling approximately $25 million ($8 million to net income or $0.02 per share) in the 2008 periods for local infrastructure projects in South America. e. After preferred dividends. f. Includes the impact of purchase accounting fair value adjustments associated with the acquisition of Phelps Dodge totaling $262 million ($163 million to net income or $0.36 per share) for second-quarter 2008, $456 million ($284 million to net income or $0.64 per share) for second-quarter 2007, $556 million ($347 million to net income or $0.77 per share) for the first six months of 2008 and $579 million ($363 million to net income or $1.05 per share) for the first six months of 2007. The 2008 periods include net purchase accounting fair value adjustments related to non-operating income and expenses totaling $22 million ($13 million to net income or $0.03 per share) for second-quarter 2008 and $37 million ($22 million to net income or $0.05 per share) for the first six months of 2008. For additional information regarding the impacts of these adjustments to production and delivery costs and depreciation, depletion and amortization refer to the supplemental schedule, Business Segments, beginning on page XXIV, which is available on FCX s web site, www.fcx.com. g. Includes net losses on early extinguishment of debt totaling $47 million ($35 million to net income or $0.08 per share) for second-quarter 2007, $6 million ($5 million to net income or $0.01 per share) for the first six months of 2008 and $135 million ($110 million to net income or $0.32 per share) for the first six months of 2007. Also includes gains in the 2008 periods totaling $13 million ($8 million to net income or $0.02 per share) on the sale of other assets and gains in the 2007 periods totaling $38 million ($23 million to net income or $0.05 per share in second-quarter 2007 and $0.07 per share in the first six months of 2007) on the sale of marketable equity securities. h. Reflects assumed conversion of FCX s 6¾% Mandatory Convertible Preferred Stock, which was issued on March 28, 2007, and 5½% Convertible Perpetual Preferred Stock. See Note h on page IV. i. On March 19, 2007, FCX issued 136.9 million common shares to acquire Phelps Dodge. On March 28, 2007, FCX sold 47.15 million common shares. Common shares outstanding on June 30, 2008, totaled 384 million. Assuming conversion of the instruments discussed in Note h above and including dilutive stock options and restricted stock units, total common shares outstanding would approximate 450 million at June 30, 2008. j. Includes working capital (uses) sources of $(765) million in second-quarter 2008, $113 million in second-quarter 2007, $(2.1) billion in the first six months of 2008 and $(89) million in the first six months of 2007. OPERATIONS Consolidated copper sales of 942 million pounds in the second quarter of 2008 were slightly above previous estimates of 930 million pounds reported on April 23, 2008, because of the timing of shipments. Second-quarter 2008 production volumes were slightly lower than forecast, principally in North America. Second-quarter 2008 consolidated copper sales were seven percent lower than the yearago period when FCX was mining in a higher grade section of Grasberg, partly offset by higher production in North and South America. Consolidated gold sales of 265 thousand ounces in second-quarter 2008 were higher than previous estimates of 225 thousand ounces because of mine sequencing at the Grasberg mine in Indonesia. As expected, consolidated gold sales in the second quarter of 2008 were significantly lower than the year ago period because of mining in a lower ore grade section of the Grasberg open pit. Consolidated molybdenum sales of 20 million pounds in the second quarter of 2008 approximated previous estimates of 18 million pounds. For the year 2008, FCX projects sales to approximate 4.1 billion pounds of copper, 1.4 million ounces of gold and 75 million pounds of molybdenum. Copper sales are expected to be approximately 100 million pounds lower than previous estimates primarily because of delays in achieving full production Freeport-McMoRan Copper & Gold 3

at the new Safford mine and lower than expected production at Morenci. Efforts are under way to offset these shortfalls. Consolidated unit net cash costs were $1.25 per pound in the second quarter of 2008. Cash costs have increased significantly in the last twelve months and additional cost escalation was experienced in the second quarter, principally for energy. The increase in second-quarter 2008 unit net cash costs compared with the year ago period also reflects lower volumes at Grasberg. The effect of increased input costs is expected to result in higher costs in 2008 than previous estimates. Assuming average prices of $3.75 per pound for copper, $900 per ounce for gold and $30 per pound for molybdenum for the remainder of 2008, unit net cash costs for the year 2008 would average approximately $1.10 per pound, compared with FCX s April 23, 2008, estimate of $1.00 per pound. Because of higher volumes in the second half of 2008, principally from Grasberg, second-half unit net cash costs are expected to be lower than the first-half average. Unit net cash costs are expected to average approximately $1.06 per pound in the second half of 2008, including approximately $1.24 per pound in third-quarter 2008 and approximately $0.92 per pound in fourth-quarter 2008. Second Quarter Six Months 2008 2007 2008 2007 a Consolidated Operating Data Copper (millions of recoverable pounds) Production 941 971 1,821 2,047 Sales b 942 1,010 1,853 2,035 Average realized price per pound $3.85 $3.34 c $3.77 $3.19 c Unit net cash costs d $1.25 $0.53 $1.16 $0.47 Gold (thousands of recoverable ounces) Production 250 825 525 1,927 Sales b 265 913 545 1,890 Average realized price per ounce $912 $659 $917 $657 Molybdenum (millions of recoverable pounds) Production 18 18 36 35 Sales b 20 15 40 34 Average realized price per pound $31.59 $24.83 $31.63 $23.83 a. Amounts are pro forma to reflect the inclusion of Phelps Dodge results prior to the March 19, 2007 acquisition. b. Excludes sales of purchased metal. c. Includes reduction of $0.13 per pound for second-quarter 2007 and $0.09 per pound for the first six months of 2007 for mark-to-market accounting adjustments on the 2007 copper price protection program. d. Reflects weighted average unit net cash costs, net of by-product credits, for all mines. For reconciliations of actual and pro forma unit net cash costs per pound by geographic region to production and delivery costs applicable to actual or pro forma sales reported in FCX s consolidated financial statements or pro forma consolidated financial results, refer to the supplemental schedule, Product Revenues and Production Costs, beginning on page VIII, which is available on FCX s web site, www.fcx.com. For the first six months of 2008, approximately 50 percent of FCX s copper was sold in concentrate, 30 percent as rod (principally from North American operations) and 20 percent as cathodes. Under the long-established structure of sales agreements prevalent in the industry, substantially all of FCX s concentrate sales contracts and most of its cathode sales contracts are provisionally priced at the time of shipment. The provisional prices are finalized in a specified future period (generally one to four months from the shipment date) based on quoted LME or COMEX prices. The sales subject to final pricing are generally settled in a subsequent month or quarter. Because a significant portion of FCX s concentrate and cathode sales in any quarterly period usually remain subject to final pricing, the quarterend forward price is a major determinant of recorded revenues and the average recorded realized price for copper for the period. Freeport-McMoRan Copper & Gold 4

LME copper prices averaged $3.83 per pound during the second quarter of 2008, compared with FCX s recorded prices of $3.85 per pound. The applicable forward copper price at the end of the quarter was $3.88 per pound. Approximately half of FCX s consolidated copper sales during the second quarter were provisionally priced at the time of shipment and are subject to final pricing later in 2008. At June 30, 2008, FCX had copper sales of 369 million pounds of copper (net of minority interests) priced at an average of $3.88 per pound, subject to final pricing over the next several months. Each $0.05 change in the price realized from the June 30, 2008, price would result in an approximate $11 million effect on FCX s 2008 net income. The LME closing spot price for copper on July 21, 2008, was $3.79 per pound. At March 31, 2008, 362 million pounds of copper (net of minority interests) were provisionally priced at $3.82 per pound. Adjustments to these prior period copper sales increased consolidated revenues by $5 million ($3 million to net income or $0.01 per share), compared with an increase of $188 million ($95 million to net income or $0.21 per share) in second-quarter 2007. Additionally, adjustments to prior year copper sales in the first six months of 2008 resulted in an increase in consolidated revenues of $267 million ($126 million to net income or $0.28 per share), compared with an increase of $90 million ($43 million to net income or $0.12 per share) in the first six months of 2007. North American Mining. FCX operates seven open-pit copper mining complexes in North America (Morenci, Bagdad, Sierrita, Safford and Miami in Arizona and Chino and Tyrone in New Mexico) and conducts molybdenum mining operations at the Henderson underground mine in Colorado. Byproduct molybdenum is primarily produced at Sierrita and Bagdad. FCX is the world s largest producer of molybdenum. FCX is engaged in a project to restart the Climax open-pit molybdenum mine in Colorado. All of these mining operations are wholly owned, except for Morenci. FCX records its 85 percent joint venture interest in Morenci using the proportionate consolidation method. The North American copper mining operations are operated in an integrated fashion and have long-lived reserves with significant additional development potential. Consolidated Second Quarter Six Months North American Mining Operations 2008 2007 2008 2007 a Copper (millions of recoverable pounds) Production 350 335 677 636 Sales b 347 333 686 640 Average realized price per pound $3.82 $3.05 c $3.66 $2.79 c Molybdenum (millions of recoverable pounds) Production 18 18 35 35 Sales d 20 15 40 34 Average realized price per pound $31.59 $24.83 $31.63 $23.83 a. Amounts are pro forma to reflect the inclusion of Phelps Dodge results prior to the March 19, 2007 acquisition. b. Excludes sales of purchased metal. c. Amount was $3.44 per pound for second-quarter 2007 and $3.08 per pound for the first six months of 2007 before charges for mark-to-market accounting adjustments on the 2007 copper price protection program. d. Excludes sales of purchased metal and includes sales of molybdenum produced at Cerro Verde. Consolidated copper sales in North America totaled 347 million pounds in the second quarter of 2008, slightly above the second-quarter 2007 sales resulting from the commencement of production at the recently commissioned Safford mine and higher production at Sierrita, partly offset by lower Morenci production. Freeport-McMoRan Copper & Gold 5

In the second quarter of 2008, consolidated molybdenum sales from the Henderson and byproduct mines totaled 20 million pounds, five million pounds higher than second-quarter 2007 primarily because of improved market conditions. Approximately 85 percent of FCX s expected 2008 molybdenum production is committed for sale throughout the world pursuant to annual or quarterly agreements based primarily on prevailing market prices one month prior to the time of sale. For 2009, 90 percent of sales is expected to be priced at approximate prevailing market prices. The Metals Week Dealer Oxide closing price for molybdenum on July 21, 2008, was $33.75 per pound. For the year 2008, FCX expects sales from North American operations to approximate 1.4 billion pounds of copper and 75 million pounds of molybdenum, compared with 1.3 billion pounds of copper and 69 million pounds of molybdenum for pro forma year 2007. Unit Net Cash Costs for North American Copper Mines. The following table summarizes unit net cash costs at the North American copper mines. Second Quarter Six Months 2008 2007 2008 2007 a Per pound of copper: Site production and delivery, after adjustments $ 1.84 $ 1.46 $ 1.74 $ 1.39 By-product credits, primarily molybdenum (0.70 ) (0.74 ) (0.74 ) (0.64 ) Treatment charges 0.10 0.09 0.10 0.08 Unit net cash costs b $ 1.24 $ 0.81 $ 1.10 $ 0.83 a. Amounts are pro forma to reflect the inclusion of Phelps Dodge results prior to the March 19, 2007 acquisition. b. For a reconciliation of actual and pro forma unit net cash costs per pound to production and delivery costs applicable to actual or pro forma sales reported in FCX s consolidated financial statements or pro forma consolidated financial results, refer to the supplemental schedule, Product Revenues and Production Costs, beginning on page VIII, which is available on FCX s web site, www.fcx.com. North America unit net cash costs were higher in the 2008 periods as compared with the 2007 periods primarily because of increases in energy, labor, sulfuric acid and other input costs, and increases in mining rates and lower grades at Morenci, combined with higher unit costs at Safford as the mine ramps up to full production rates. Assuming an average copper price of $3.75 per pound and an average molybdenum price of $30 per pound for the remainder of 2008 and achievement of current 2008 sales estimates, FCX estimates that its 2008 average unit net cash costs, including molybdenum credits, for its North American copper mines would approximate $1.29 per pound of copper. Unit net cash costs for 2008 would change by approximately $0.02 per pound for each $2 per pound change in the average price of molybdenum for the remainder of 2008. Unit Net Cash Costs for Henderson Molybdenum Mine. Second-quarter 2008 unit net cash costs of $4.96 per pound of molybdenum at the Henderson molybdenum mine were higher, compared with unit net cash costs of $4.38 per pound for second-quarter 2007, primarily because of higher input costs, including labor, maintenance, supplies and energy. Assuming achievement of current 2008 sales estimates, FCX estimates 2008 average unit net cash costs for its Henderson mine at approximately $5.00 per pound of molybdenum. South American Mining. FCX operates four copper mines in South America Cerro Verde in Peru and Candelaria, Ojos del Salado and El Abra in Chile. These operations are consolidated in FCX s financial statements, with outside ownership reported as minority interests. FCX owns a 53.56 percent interest in Cerro Verde, an open-pit mine producing both electrowon copper cathodes and copper and molybdenum concentrates. FCX owns 80 percent of the Candelaria and Ojos del Salado mining complexes, which include the Candelaria open-pit and underground mines and the Ojos del Salado underground mines. These mines use common processing facilities to produce Freeport-McMoRan Copper & Gold 6

copper concentrates. FCX owns a 51 percent interest in El Abra, an open-pit mine producing electrowon copper cathodes. Consolidated Second Quarter Six Months South American Mining Operations 2008 2007 2008 2007 a Copper (millions of recoverable pounds) Production 369 338 722 645 Sales 366 343 731 644 Average realized price per pound $3.86 $3.54 $3.84 $3.33 Gold (thousands of recoverable ounces) Production 25 28 51 52 Sales 26 28 53 53 Average realized price per ounce $910 $674 $914 $609 a. Amounts are pro forma to reflect the inclusion of Phelps Dodge results prior to the March 19, 2007 acquisition. South American copper sales in the second quarter of 2008 were higher than in second-quarter 2007 primarily reflecting higher production from Cerro Verde s new concentrator. Unit Net Cash Costs. The following table summarizes unit net cash costs at the South American copper mines. Second Quarter Six Months 2008 2007 2008 2007 a Per pound of copper: Site production and delivery, after adjustments $ 1.15 $ 0.82 $ 1.12 $ 0.83 By-product credits, primarily gold and molybdenum (0.12 ) (0.07 ) (0.13 ) (0.07 ) Treatment charges 0.19 0.21 0.19 0.19 Unit net cash costs b $ 1.22 $ 0.96 $ 1.18 $ 0.95 a. Amounts are pro forma to reflect the inclusion of Phelps Dodge results prior to the March 19, 2007 acquisition. b. For a reconciliation of actual and pro forma unit net cash costs per pound to production and delivery costs applicable to actual or pro forma sales reported in FCX s consolidated financial statements or pro forma consolidated financial results, refer to the supplemental schedule, Product Revenues and Production Costs, beginning on page VIII, which is available on FCX s web site, www.fcx.com. South America unit net cash costs were higher in the 2008 periods compared with the 2007 periods primarily because of higher energy costs, higher mining rates at Candelaria and higher milling costs at Cerro Verde and Candelaria. These increases were partly offset by increased production from the recently expanded mill at Cerro Verde and favorable by-product credits. The 2008 periods unit net cash costs also increased because of higher local contributions at Cerro Verde. For the year 2008, FCX expects South American sales of 1.5 billion pounds of copper and 100 thousand ounces of gold, compared with 1.4 billion pounds of copper and 114 thousand ounces of gold for the pro forma year 2007. In addition, FCX expects to produce three million pounds of molybdenum at Cerro Verde for the year 2008, compared with one million pounds for the pro forma year 2007. Estimated 2008 molybdenum production is lower than previous estimates because of downtime at the Cerro Verde molybdenum plant as start-up issues continue to be addressed. Assuming achievement of current 2008 sales estimates, FCX estimates that its 2008 average unit net cash costs, including gold and molybdenum credits, for its South American mines would approximate $1.18 per pound of copper. Freeport-McMoRan Copper & Gold 7

Indonesian Mining. Through its 90.64 percent owned subsidiary PT Freeport Indonesia (PT-FI), FCX operates the world s largest copper and gold mine in terms of reserves at its Grasberg operations in Papua, Indonesia. Consolidated Second Quarter Six Months Indonesian Mining Operations 2008 2007 2008 2007 Copper (millions of recoverable pounds) Production 222 298 422 766 Sales 229 334 436 751 Average realized price per pound $3.88 $3.43 $3.84 $3.40 Gold (thousands of recoverable ounces) Production 221 795 467 1,869 Sales 235 880 486 1,827 Average realized price per ounce $912 $658 $917 $659 Indonesia copper and gold sales in the second quarter of 2008 were significantly lower than in the second quarter of 2007 as a result of the expected mining in a lower ore grade section of the Grasberg open pit. At the Grasberg mine, the sequencing in mining areas with varying ore grades causes fluctuations in the timing of ore production, resulting in varying quarterly and annual sales of copper and gold. PT-FI expects to mine in a higher-grade section of the Grasberg open pit in the second half of 2008 compared to the first half of 2008. Approximately 63 percent of 2008 copper sales and 63 percent of 2008 gold sales are estimated in the second half, with the fourth quarter expected to be the highest of the year. FCX expects Indonesia sales of 1.2 billion pounds of copper and 1.3 million ounces of gold for the year 2008, compared with 1.1 billion pounds of copper and 2.2 million ounces of gold for the year 2007. Unit Net Cash Costs (Credits). The following table summarizes PT-FI s unit net cash costs (credits). Second Quarter Six Months 2008 2007 2008 2007 Per pound of copper: Site production and delivery, after adjustments $ 1.90 $ 1.14 $ 1.88 $ 0.92 Gold and silver credits (0.99 ) (1.79 ) (1.11 ) (1.65 ) Treatment charges 0.28 0.33 0.31 0.35 Royalties 0.13 0.14 0.13 0.13 Unit net cash costs (credits) a $ 1.32 $ (0.18 ) $ 1.21 $ (0.25 ) a. For a reconciliation of unit net cash costs (credits) 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 VIII, which is available on FCX s web site, www.fcx.com. PT-FI s unit net cash costs, including gold and silver credits, averaged $1.32 per pound for second-quarter 2008, compared with a net credit of $0.18 per pound for second-quarter 2007. The higher unit net cash costs in 2008 reflected the significantly lower copper and gold volumes and higher input costs, partly offset by higher gold prices during second-quarter 2008. Unit site production and delivery costs will vary with fluctuations in production volumes because of the primarily fixed nature of PT-FI s cost structure. Because the majority of PT-FI s costs are fixed, unit costs vary with the volumes sold and the price of gold. Assuming average copper prices of $3.75 per pound and average gold prices of $900 per ounce for the remainder of 2008 and achievement of current 2008 sales estimates, PT-FI estimates that its 2008 unit net cash costs, including gold and silver credits, would approximate $0.80 per pound. Unit net cash costs for 2008 would change by approximately $0.02 per pound for each $25 per ounce change in the average price of gold for the remainder of 2008. Freeport-McMoRan Copper & Gold 8

OTHER ITEMS Atlantic Copper, FCX s wholly owned Spanish smelting unit, reported operating income of $11 million in the second quarter of 2008, compared with an operating loss of $4 million in the 2007 period. The second quarter of 2007 included a $23 million impact from its 23-day maintenance turnaround completed in June 2007. FCX defers recognizing profits on PT-FI s and its South American mines sales to Atlantic Copper and on 25 percent of PT-FI s sales to PT Smelting, PT-FI s 25 percent-owned Indonesian smelting unit, until final sales to third parties occur. Changes in these net deferrals resulted in a reduction to FCX s net income totaling $6 million, $0.01 per share, in the second quarter of 2008, and an addition to FCX s net income totaling less than $1 million, less than $0.01 per share, in the first six months of 2008. For the 2007 periods, changes in these net deferrals resulted in an addition to FCX s net income totaling $7 million, $0.02 per share, in the second quarter and a reduction to net income of $103 million, $0.30 per share, in the first six months. At June 30, 2008, FCX s net deferred profits on PT-FI s and its South American mines concentrate inventories at Atlantic Copper and PT Smelting to be recognized in future periods net income after taxes and minority interest sharing totaled $93 million. DEVELOPMENT and EXPLORATION ACTIVITIES Development Activities. FCX has significant development activities under way to expand its production volumes, extend its mine lives and develop large-scale underground ore bodies. Recently completed or current major projects include a major new mining complex at Safford, Arizona; a project to restart open-pit mining at Climax; a sulfide leach project to extend the mine life at El Abra; the development of the large-scale, high-grade underground ore bodies in the Grasberg district and development of the highly prospective Tenke Fungurume project in the Democratic Republic of Congo (DRC). In addition to the projects currently under way, FCX is reviewing its properties to evaluate the potential for expansion opportunities associated with existing ore bodies. FCX has initiated plans for incremental expansions at the Morenci, Sierrita and Bagdad mines in Arizona and the Cerro Verde mine in Peru. Based on scoping level estimates, these projects would provide incremental production ramping up to over 200 million pounds of copper per year and 7 million pounds of molybdenum per year by 2011 with preliminary capital costs estimated to approximate $400 million. Detailed engineering for these projects is under way, which is expected to result in revised capital estimates and potential project scope changes. In addition, FCX restarted limited mining activities at the Miami copper mine in Arizona as it continues to conduct reclamation activities associated with historical mining operations. During the approximate five-year mine life, FCX expects to ramp up to full rates of production of approximately 100 million pounds of copper per year by 2010. Capital investment for this project is expected to approximate $100 million, primarily for mining equipment. FCX has also expanded its exploration activities and plans to incorporate this data into its future development plans. North America. Construction of a major new copper mine in Safford, Arizona, is complete and copper production is being ramped up to design capacity of 240 million pounds of copper per year. Copper production at Safford totaled 22 million pounds in first-quarter 2008 and 24 million pounds in second-quarter 2008. A number of start-up issues are being addressed, principally associated with achieving design capacity of the ore stacking circuit and leach recovery optimization. The mine will continue to ramp up during the second half of 2008. The Safford copper mine produces ore from two open-pit mines and includes a solution extraction/electrowinning facility. Construction commenced in August 2006 and was completed in advance of initial expectations. The total capital investment for this project approximated $675 million. FCX will continue to pursue significant additional exploration and development potential in this district, including the Lone Star project, a potentially large mineral resource that is currently being evaluated with a drilling program. Freeport-McMoRan Copper & Gold 9

In December 2007, FCX announced plans to proceed with the restart of the Climax molybdenum mine near Leadville, Colorado. Climax is believed to be the largest, highest grade and lowest cost undeveloped molybdenum ore body in the world. Major permits were secured in early 2008. Engineering is in an advanced stage and construction activities commenced in the second quarter of 2008. Long lead items have been ordered and are on schedule for delivery. The initial $500 million project involves open-pit mining and the construction of new milling facilities. After start-up and commissioning in 2010, production is expected to approximate 30 million pounds of molybdenum per year. The project is designed to enable the consideration of further large-scale expansion of the Climax mine. FCX is currently evaluating a second phase of the Climax project to expand production rates should market conditions warrant additional production. South America. FCX is advancing the development of a large sulfide deposit at El Abra that will extend the mine life by over ten years. Copper production from the sulfides is targeted to begin in 2010 and is expected to average approximately 325 million pounds of copper per year beginning in 2012, replacing depleting oxide production. Certain of the existing facilities at El Abra will be used to process the additional sulfide reserves. In March 2008, FCX received approval of its environmental impact study associated with this project. Total initial capital for the project is estimated to approximate $450 million, the majority of which will be spent between 2008 and 2011. Indonesia. PT-FI has several projects in progress throughout the Grasberg district, including developing its large-scale underground ore bodies located beneath and adjacent to the Grasberg open pit. The expansion of the currently producing Deep Ore Zone (DOZ) mine to 50,000 metric tons of ore per day is complete with second-quarter rates averaging 66,000 metric tons per day. A further expansion of the DOZ mine to 80,000 metric tons per day is under way with completion targeted by 2010. Other projects include the development of the high-grade Big Gossan mine, expected to ramp up to full production of 7,000 metric tons per day in 2011, and the continued development of the Common Infrastructure project, which will provide access to the Grasberg underground ore body, the Kucing Liar ore body and future development of the mineralized areas below the DOZ mine. Africa. FCX holds an effective 57.75 percent interest in the Tenke Fungurume copper and cobalt mining concessions in the Katanga province of the DRC. FCX is the operator of the project. The initial project at Tenke Fungurume is based on mining and processing ore reserves approximating 100 million metric tons with average ore grades of 2.3 percent copper and 0.3 percent cobalt. FCX is currently engaged in drilling activities, exploration and metallurgical testing to evaluate the potential of this highly prospective district and expects the ore reserves to increase significantly over time. Approximately $700 million in aggregate project costs have been incurred to date. Construction activities are being advanced with current activities focused on concrete placement, steel tank erection, structural steel and infrastructure development including shops, warehouses and extensive social and regional infrastructure programs. All long lead time equipment has been ordered and initial production is targeted during the second half of 2009. Annual production in the initial years of the project is expected to approximate 250 million pounds of copper and 18 million pounds of cobalt. FCX expects the results of drilling activities will enable significant future expansion of initial production rates. FCX is responsible for funding 70 percent of the project development costs and is also responsible for financing its partner s share of certain project overruns. A capital cost review prepared in April 2008 indicates estimated capital costs of approximately $1.75 billion (approximately $1.9 billion including loans to a third-party government agency for power development). These estimates include substantial amounts for infrastructure to support a larger scale operation than the initial phase of the project, including the provision of expanded electrical power-generating capacity and improved power reliability for the region. This regional power infrastructure investment is estimated to approximate $175 million, the majority of which is expected to be funded through a loan to the DRC State power authority. FCX is continuing to develop plans to enhance the economic returns of the project, including expansions of this high potential resource. The capital cost estimates and timing of start-up will continue to be reviewed and updated as the project development progresses. Freeport-McMoRan Copper & Gold 10

Exploration Activities. FCX is conducting exploration activities near its existing mines with a focus on opportunities to expand reserves that will support additional future production capacity in the large mineral districts where we currently operate. Drilling activities have been significantly expanded over the last twelve months. These efforts involve drilling adjacent to existing ore bodies. The number of drill rigs has been expanded from 26 in March 2007 to 80 currently. Exploration expenses in 2008 are expected to approximate $240 million. Results to date have been positive, providing opportunities for significant potential reserve additions at Morenci, Bagdad and Sierrita in North America; Cerro Verde in South America and in the high potential Tenke district. Drilling continues at the Lone Star deposit in the Safford district. In addition, FCX continues to pursue exploration in Indonesia. FCX s 2008 exploration efforts in Indonesia include testing extensions of the Deep Grasberg and Kucing Liar mine complex, evaluating the resource below the old Ertsberg pit for potential resumption of open pit mining and evaluating targets in the area between the Ertsberg East and Grasberg mineral systems from the new Common Infrastructure tunnels. FCX has resumed exploration activities in certain prospective areas in Papua, outside Block A (the Grasberg contract area). FCX will continue to incorporate the results of drilling activities into its mine plans to evaluate potential reserve additions and future expansion opportunities. Feasibility studies will incorporate various considerations, including recent cost escalation, water and power issues and environmental and regulatory factors. CASH and DEBT At June 30, 2008, FCX had consolidated cash of $1.6 billion and net cash available to the parent company of $0.9 billion as shown below (in billions): June 30, 2008 Cash at parent company $ 0.1 a Cash from international operations 1.5 Total consolidated cash 1.6 Less minority interests share (0.5) Cash, net of minority interests share 1.1 Withholding and other taxes if distributed (0.2) b Net cash available to parent company $ 0.9 a. Includes cash at FCX s North America mining operations. b. Cash at FCX s international operations is subject to foreign withholding taxes of up to 22 percent upon repatriation into the U.S. At June 30, 2008, FCX had $7.4 billion in debt. The following table summarizes FCX s debt transactions since December 31, 2007 (in billions): Total debt at December 31, 2007 $ 7.2 Net borrowings under revolving credit facility 0.3 Other borrowings, net 0.1 Total debt at March 31, 2008 7.6 Net repayments under revolving credit facility (0.2) Total debt at June 30, 2008 $ 7.4 OUTLOOK FCX s actual consolidated sales volumes for the first half of 2008 and projected consolidated sales volumes for the year 2008 are shown below: Freeport-McMoRan Copper & Gold 11

2008 First- Full- Half Year Consolidated Sales from Mines Actual Estimate Copper (recoverable pounds): (millions) (billions) North America 686 1.4 South America 731 1.5 Indonesia 436 1.2 Total 1,853 4.1 Gold (recoverable ounces): (thousands) (millions) Indonesia 486 1.3 Other 59 0.1 Total 545 1.4 Molybdenum (recoverable pounds): (millions) (millions) North America 40 a 75 a a. Includes sales of molybdenum produced at Cerro Verde. Because of mine sequencing at Grasberg and the ramp up of production at Safford, second-half 2008 production is expected to be higher than the first half. Approximately 55 percent of consolidated copper sales and 62 percent of consolidated gold sales are expected in the second half of the year. The achievement of FCX s sales estimates will be dependent on the achievement of targeted mining rates and expansion plans, the successful operation of production facilities, the impact of weather conditions and other factors. Using estimated sales volumes for 2008 and assuming average prices of $3.75 per pound of copper, $900 per ounce of gold and $30 per pound of molybdenum for the remainder of 2008, FCX s consolidated operating cash flows would approximate $6.0 billion in 2008, including approximately $4.4 billion projected for the second half of 2008. Each $0.20 per pound change in copper prices in the balance of the year would have an approximately $300 million impact on 2008 operating cash flows. Using flat pricing assumptions for the remainder of the year, second-half 2008 operating cash flows would be significantly higher than the first half. FCX s capital expenditures for 2008 are currently estimated to approximate $3.0 billion. With a continuation of favorable market conditions, FCX expects to generate cash flows during 2008 significantly greater than its capital expenditures, minority interests distributions, dividends and other cash requirements. FINANCIAL POLICY FCX has a long-standing tradition of seeking to build shareholder values through pursuing development projects with high rates of return and returning cash to shareholders through common stock dividends and share purchases. FCX separately announced today that its Board of Directors authorized an increase in its annual common dividend to $2.00 per share from its current level of $1.75 per share, effective with the November 2008 quarterly dividend. The new common dividend results in an increase in common dividends to approximately $770 million per year from the current total approximating $670 million. Preferred dividends total approximately $255 million per year. FCX also announced today that its Board of Directors approved an increase in its open market share purchase program to 30 million shares from the prior authorization of 20 million shares. The timing of future purchases is dependent upon many factors including the company s operating results, its cash flow and financial position, its future expansion plans, copper prices, the market price of the common shares and general economic and market conditions. Freeport-McMoRan Copper & Gold 12

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 mining complex, the world s largest copper and gold mine in terms of recoverable reserves, significant mining operations in the Americas, including the large scale Morenci and Safford minerals districts in North America and the Cerro Verde and El Abra operations in South America, and the potential world-class Tenke Fungurume development project in the Democratic Republic of Congo. Additional information about FCX is available on FCX s web site at www.fcx.com. Cautionary Statement and Regulation G Disclosure: This press release contains forward-looking statements in which we discuss factors we believe may affect our performance in the future. Forward-looking statements are all statements other than historical facts, such as statements regarding projected ore grades and milling rates, projected sales volumes, projected unit net cash costs, projected operating cash flows, projected capital expenditures, the impact of copper, gold and molybdenum price changes, the impact of changes in deferred intercompany profits on earnings and timing of dividend payments and open market purchases of FCX common stock. The declaration and payment of dividends is at the discretion of FCX s Board of Directors and will depend on FCX s financial results, cash requirements, future prospects and other factors deemed relevant by the Board. Accuracy of the forward-looking statements depends on assumptions about events that change over time and is thus susceptible to periodic change based on actual experience and new developments. FCX cautions readers that it assumes no obligation to update or publicly release any revisions to the forward-looking statements in this press release and, except to the extent required by applicable law, does not intend to update or otherwise revise the forward-looking statements more frequently than quarterly. Additionally, important factors that might cause future results to differ from these projections include mine sequencing, production rates, industry risks, commodity prices, political risks, weather-related risks, labor relations, currency translation risks and other factors described in FCX's Annual Report on Form 10-K for the year ended December 31, 2007, filed with the Securities and Exchange Commission (SEC). This press release also contains certain financial measures such as unit net cash costs (credits) 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 or pro forma consolidated financial results are in the supplemental schedule, Product Revenues and Production Costs, beginning on page VIII, which is available on FCX s web site, www.fcx.com. A copy of this press release is available on FCX s web site, www.fcx.com. A conference call with securities analysts about second-quarter 2008 results is scheduled for today at 10:00 a.m. EDT. The conference call will be broadcast on the Internet along with slides. Interested parties may listen to the webcast live and view the slides by accessing www.fcx.com. A replay of the webcast will be available through Friday, August 15, 2008. # # # Freeport-McMoRan Copper & Gold 13

SELECTED OPERATING DATA Three Months Ended June 30, COPPER Production Sales (millions of recoverable pounds) 2008 2007 2008 2007 MINED COPPER (FCX s net interest in %) North America Morenci (85%) 155 a 183 a 158 a 180 a Bagdad (100%) 54 51 54 47 Sierrita (100%) 49 35 46 36 Chino (100%) 47 44 48 45 Tyrone (100%) 16 11 15 13 Miami (100%) 4 6 5 5 Tohono (100%) 1 1-1 Safford (100%) 24-20 - Other (100%) - 4 1 6 Total North America 350 335 347 333 South America Cerro Verde (53.56%) 179 142 181 132 Candelaria/Ojos del Salado (80%) 97 108 101 108 El Abra (51%) 93 88 84 103 Total South America 369 338 366 343 Indonesia Grasberg (90.64%) 222 b 298 b 229 b 334 b Consolidated 941 971 942 1,010 Less minority participants share 169 159 167 164 Net 772 812 775 846 Consolidated sales from mines 942 1,010 Purchased copper 130 180 Total consolidated sales 1,072 1,190 Average realized price per pound $3.85 $3.34 c GOLD (thousands of recoverable ounces) MINED GOLD (FCX s net interest in %) North America (100%) 4 2 4 5 South America (80%) 25 28 26 28 Indonesia (90.64%) 221 b 795 b 235 b 880 b Consolidated 250 825 265 913 Less minority participants share 26 80 27 88 Net 224 745 238 825 Consolidated sales from mines 265 913 Purchased gold 1 - Total consolidated sales 266 913 Average realized price per ounce $912 $659 MOLYBDENUM (millions of recoverable pounds) MINED MOLYBDENUM (FCX s net interest in %) Henderson (100%) 11 10 N/A N/A By-product North America (100%) 7 a 8 a N/A N/A By-product Cerro Verde (53.56%) - d - N/A N/A Consolidated 18 18 20 15 Purchased molybdenum 2 3 Total consolidated sales 22 18 Average realized price per pound $31.59 $24.83 a. Amounts are net of Morenci s joint venture partner s 15 percent interest. b. Amounts are net of Grasberg s joint venture partner s interest, which varies in accordance with the terms of the joint venture agreement. c. Includes reduction of $0.13 per pound for mark-to-market accounting adjustment on copper price protection program. d. Amount rounds to less than 1 million. I

SELECTED OPERATING DATA (continued) Six Months Ended June 30, COPPER Production Sales (millions of recoverable pounds) 2008 2007 a 2008 2007 a MINED COPPER (FCX s net interest in %) North America Morenci (85%) 301 b 341 b 318 b 332 b Bagdad (100%) 106 93 107 93 Sierrita (100%) 90 72 87 77 Chino (100%) 91 85 97 86 Tyrone (100%) 31 24 30 25 Miami (100%) 9 9 10 13 Tohono (100%) 1 2 1 2 Safford (100%) 46-33 - Other (100%) 2 10 3 12 Total North America 677 636 c 686 640 c South America Cerro Verde (53.56%) 345 254 349 245 Candelaria/Ojos del Salado (80%) 197 208 204 212 El Abra (51%) 180 183 178 187 Total South America 722 645 c 731 644 c Indonesia Grasberg (90.64%) 422 d 766 d 436 d 751 d Consolidated 1,821 2,047 1,853 2,035 Less minority participants share 327 321 331 318 Net 1,494 1,726 1,522 1,717 Consolidated sales from mines 1,853 2,035 Purchased copper 301 357 Total consolidated sales 2,154 2,392 Average realized price per pound $3.77 $3.19 e GOLD (thousands of recoverable ounces) MINED GOLD (FCX s net interest in %) North America (100%) 7 6 6 10 South America (80%) 51 52 f 53 53 f Indonesia (90.64%) 467 d 1,869 d 486 d 1,827 d Consolidated 525 1,927 545 1,890 Less minority participants share 54 185 56 182 Net 471 1,742 489 1,708 Consolidated sales from mines 545 1,890 Purchased gold 1 4 Total consolidated sales 546 1,894 Average realized price per ounce $917 $657 MOLYBDENUM (millions of recoverable pounds) MINED MOLYBDENUM (FCX s net interest in %) Henderson (100%) 20 20 N/A N/A By-product North America (100%) 15 b 15 b N/A N/A By-product Cerro Verde (53.56%) 1 - N/A N/A Consolidated 36 35 g 40 34 g Purchased molybdenum 4 5 Total consolidated sales 44 39 Average realized price per pound $31.63 $23.83 a. The six-month 2007 data includes Phelps Dodge s pre-acquisition results for comparative purposes only. b. Amounts are net of Morenci s joint venture partner s 15 percent interest. c. Includes North American copper production of 258 million pounds and sales of 283 million pounds and South American copper production of 259 million pounds and sales of 222 million pounds for Phelps Dodge s pre-acquisition results. d. Amounts are net of Grasberg s joint venture partner s interest, which varies in accordance with the terms of the joint venture agreement e. Includes reduction of $0.09 per pound for mark-to-market accounting adjustment on Phelps Dodge s 2007 copper price protection program. f. Includes gold production of 21 thousand ounces and sales of 18 thousand ounces for Phelps Dodge s pre-acquisition results. g. Includes molybdenum production of 14 million pounds and sales of 17 million pounds for Phelps Dodge s pre-acquisition results. II