Freeport-McMoRan, Plains Exploration Offer Results of Merger Consideration Election

Freeport-McMoRan Copper & Gold Inc. FCX and Plains Exploration & Production Company PXP today announced the preliminary results of the elections made by PXP stockholders regarding the form of merger consideration to be received in connection with FCX's pending acquisition of PXP, which is currently expected to be completed on May 20, 2013. As previously announced, on December 5, 2012, FCX and PXP announced that they had entered into a definitive merger agreement pursuant to which FCX will acquire PXP. Pursuant to the merger agreement, PXP stockholders were entitled to elect to receive, for each share of PXP common stock held, either cash or shares of FCX common stock with a value equal to the sum of 0.6531 shares of FCX common stock and $25.00, subject to proration in the event cash is oversubscribed or undersubscribed. As of May 15, 2013, approximately 132,285,291 shares of PXP common stock, including restricted shares and shares subject to certain restricted stock units (“RSUs”) which are entitled to make a merger consideration election under the terms of the merger agreement, were outstanding (the “outstanding PXP shares”). Based on available information as of the election deadline of 5:00 p.m., New York time, on May 15, 2013, the preliminary election results were as follows: holders of approximately 38,503,126 PXP shares (including holders of   •   restricted shares and certain RSUs), or approximately 29.1% of the outstanding PXP shares, elected to receive cash; holders of approximately 60,231,439 PXP shares (including holders of   •   restricted shares and certain RSUs), or approximately 45.5% of the outstanding PXP shares, elected to receive FCX common stock; and holders of approximately 33,550,726 PXP shares (including holders of   •   restricted shares and certain RSUs), or approximately 25.4% of the outstanding PXP shares, did not make a valid election or did not deliver a valid election form prior to the election deadline. PXP stockholders electing to receive FCX common stock may be prorated and consequently are expected to receive approximately 98.7% of their merger consideration in FCX common stock and the remainder in cash. PXP stockholders electing cash and stockholders who did not make a valid election or did not deliver a valid election form prior to the election deadline are expected to receive all of their consideration in cash. No fractional shares of FCX common stock will be issued, and PXP stockholders will receive cash in lieu of fractional shares. These amounts and allocations are estimates based on preliminary information and assumptions regarding transaction timing, and may change. If the necessary PXP stockholder approval is obtained and the other conditions to closing are satisfied, the final allocation of the merger consideration will be computed using the formula set forth in the merger agreement and announced in a press release.