First-quarter 2009 consolidated sales of copper reflectanticipated increased production at Grasberg because of higher ore gradespartially offset by lower sales volumes at North

First-quarter 2009 consolidated sales of copper reflectanticipated increased production at Grasberg because of higher ore grades,partially offset by lower sales volumes at North America mines reflectingplanned curtailed production rates to reduce production of higher cost volumes. First-quarter 2009 consolidated gold sales of 545 thousand ounces were nearlytwo times higher than first-quarter 2008 gold sales of 280 thousand ouncesbecause of higher ore grades at Grasberg. First-quarter 2009 consolidated salesof gold exceeded previous estimates of 500 thousand ounces. Consolidated molybdenum sales of 10 million pounds in the first quarter of 2009were lower than first-quarter 2008 sales of 20 million pounds and our January2009 estimate of 13 million pounds. First-quarter 2009 consolidated sales ofmolybdenum reflected the significant recent decline in molybdenum demand,primarily in the metallurgical sector. Unit site production and delivery costs averaged $1.07 per pound of copper infirst-quarter 2009, 27 percent lower than first-quarter 2008 of $1.47 per poundand 29 percent lower than the 2008 average of $1.51 per pound.

First-quarter2009 unit net cash costs, after by-product credits, of $0.66 per pound werelower than the year-ago period primarily as a result of reduced operating ratesfollowing production curtailments at North America mining operations; highercopper ore grades at Grasberg; and decreases in energy and other commodity-basedinput costs. Assuming average prices of $2.00 per pound for copper, $900 perounce for gold and $8 per pound for molybdenum for the remainder of 2009, andusing recent prices for commodity-based input costs, unit net cash costs wouldaverage approximately $0.70 per pound for the year North America Copper Mines. FCX operates five open-pit copper mines in NorthAmerica (Morenci, Sierrita, Bagdad and Safford in Arizona and Tyrone in NewMexico). By-product molybdenum is produced primarily at Sierrita and Bagdad. Allof the North America mining operations are wholly owned, except for Morenci. FCXrecords its 85 percent joint venture interest in Morenci using the proportionateconsolidation method. First Quarter North America Copper Mining Operations2009 2008 Copper (millions of recoverable pounds) Production 289 327Sales, excluding purchased metal 301 339Average realized price per pound$1.59 $3.50 Molybdenum (millions of recoverable pounds)aProduction 6 8a.Represents by-product production.Sales of by-product molybdenum are reflected inthe molybdenum division discussion that begins on page 7.Consolidated copper sales in North America totaled 301 million pounds in thefirst quarter of 2009, 11 percent lower than first-quarter 2008 sales primarilyreflecting curtailed production rates, partly offset by higher production at theSafford copper mine.

Production commenced at Safford in December 2007 and wasramped up to design capacity during 2008 before FCX revised its operating plansto curtail production in fourth-quarter 2008. In response to weak market conditions, during the fourth quarter of 2008 and inJanuary 2009, FCX revised its operating plans at its North America copper mines,which included an approximate 50 percent reduction in the mining andcrushed-leach rates at Morenci, an approximate 50 percent reduction in themining and stacking rates at the newly commissioned Safford mine, an approximate50 percent reduction in the mining rate at the Tyrone mine and a suspension ofmining and milling activities at the Chino mine (with limited residual copperproduction from leach operations). For the year 2009, FCX expects sales from North America copper mines toapproximate 1.1 billion pounds of copper, compared with 1.4 billion pounds ofcopper for 2008. By-product molybdenum production is expected to total 27million pounds in 2009, compared with 30 million pounds in 2008. Curtailedproduction in North America is estimated to result in approximately 400 millionpounds less copper in 2009 than planned prior to the revisions. Production in2010 is currently expected to decline by approximately an additional 200 millionpounds because of impacts of 2009 mining activities on 2010 leaching operations.These plans continue to be reviewed and additional adjustments may be made inresponse to market conditions Unit Net Cash Costs. Thesedecreases were partly offset by draw downs of inventory with higher costs.Molybdenum by-product credits were lower in first-quarter 2009 compared withfirst-quarter 2008 primarily because of lower molybdenum prices.

FCX`s five operating North America copper mines have varying cost structuresbecause of differences in ore grades and ore characteristics, processing costs,by-products and other factors. The Morenci mine, which comprises approximately40 percent of North America production, had unit net cash costs of $1.18 perpound in the first quarter of 2009. This compares with $1.46 per pound infirst-quarter 2008 and $1.95 per pound in the second half of 2008. Based on current operating plans and assuming achievement of current salesestimates, an average molybdenum price of $8 per pound for the remainder of 2009and estimates for commodity-based input costs, FCX estimates that its averageunit net cash costs, including molybdenum credits, for its North America coppermines would approximate $1.22 per pound of copper for 2009.

Unit net cash costsfor 2009 would change by approximately $0.015 per pound for each $1 per poundchange in the average price of molybdenum for the remainder of 2009 South America Copper Mines. FCX operates four copper mines in South America -Cerro Verde in Peru and Candelaria, Ojos del Salado and El Abra in Chile. FCXowns a 53.56 percent interest in Cerro Verde, an open-pit mine producing bothelectrowon copper cathodes and copper and molybdenum concentrates. FCX owns 80percent of the Candelaria and Ojos del Salado mining complexes, which includethe Candelaria open-pit and underground mines and the Ojos del Saladounderground mines. These mines use common processing facilities to producecopper concentrates.