Freeport-McMoRan Copper & Gold Inc. Reports Third-Quarter and Nine-Month 2006 Results.

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

HIGHLIGHTS

* Third-quarter 2006 net income of $350.7 million, $1.67 per share, compared with net income of $165.8 million, $0.86 per share, for the third quarter of 2005.

* Third-quarter 2006 sales for PT Freeport Indonesia (PT-FI), FCX's Indonesian mining unit, totaled 323.6 million pounds of copper and 478.0 thousand ounces of gold, compared with 346.3 million pounds and 475.0 thousand ounces in the third quarter of 2005.

* Projected annual sales for 2006 approximate 1.2 billion pounds of copper and 1.7 million ounces of gold, including 415 million pounds of copper and 470 thousand ounces of gold estimated for the fourth quarter.

* FCX's operating cash flows totaled $692.5 million for the third quarter of 2006 and $1.1 billion for the first nine months of 2006. Assuming average prices of $3.25 per pound of copper and $575 per ounce of gold in the fourth quarter of 2006 and forecasted sales volumes, full-year operating cash flows would approximate $1.7 billion. Capital expenditures totaled $67.7 million for the third quarter of 2006 and $178.0 million for the first nine months of 2006, with full-year capital expenditures estimated to total $250 million.

* Total debt as of September 30, 2006, approximated $775 million, $76 million net of $699 million of cash. Total debt was reduced by $481 million during the first nine months of 2006, including $286.1 million from the recent conversions of FCX's 7% Convertible Senior Notes due 2011 into common stock.

* Common stock dividends during the third quarter of 2006 totaled $206 million, $1.0625 per share, including a supplemental $148 million ($0.75 per share) dividend paid on September 29, 2006.

* During the first nine months of 2006, FCX completed financial transactions totaling $1.14 billion, including $481 million in debt reductions and $659 million in cash to shareholders ($559 million, $2.9375 per share, in common stock dividends and $100 million in common stock purchases).

Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) reported third-quarter 2006 net income applicable to common stock of $350.7 million, $1.67 per share, compared with net income of $165.8 million, $0.86 per share, for the third quarter of 2005. For the nine months ended September 30, 2006, FCX reported net income of $969.6 million, $4.64 per share, compared with $471.4 million, $2.48 per share, in the 2005 period.

Net income for the third quarter of 2006 included (1) losses of $35.9 million ($0.16 per share) on debt reductions, including $28.9 million ($0.13 per share) related to the conversions to common stock of FCX's 7% Convertible Senior Notes due 2011 and $7.0 million ($0.03 per share) related to the final redemption of FCX's Silver-Denominated Preferred Stock and (2) net gains from the disposition of land and certain royalty rights owned by Atlantic Copper, FCX's wholly owned Spanish smelting unit, totaling $21.1 million ($0.10 per share). For the first nine months of 2006, net income included losses of $74.0 million ($0.33 per share) on debt reductions, including $36.6 million ($0.17 per share) related to the redemption of FCX's Gold-Denominated Preferred Stock, and net gains of $29.7 million ($0.13 per share) at Atlantic Copper from the disposition of land and certain royalty rights. Net income for the third quarter and first nine months of 2005 included losses on debt reductions totaling $32.9 million ($0.15 per share).

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James R. Moffett, Chairman of the Board, and Richard C. Adkerson, President and Chief Executive Officer, said, "Our third-quarter results continue to demonstrate the strong cash flows being generated by the Grasberg minerals district. Our large-scale mining operations and positive market conditions are allowing us to strengthen our balance sheet while providing significant cash returns to shareholders. The outlook for our business is positive, as we continue to build long-term values for our shareholders."

PT-FI PRODUCTION AND SALES

PT-FI's share of third-quarter 2006 sales totaled 323.6 million pounds of copper and 478.0 thousand ounces of gold, exceeding previous estimates reported in July 2006 of 280.0 million pounds of copper and 320.0 thousand ounces of gold. The higher than previously projected third-quarter sales reflect the mining of a high-grade section of the Grasberg pit previously scheduled to be mined in future periods. PT-FI will continue to seek to advance metal production when opportunities are available within safety and long-term productivity criteria.

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In the third quarter of 2006, copper ore grades averaged 0.85 percent and recovery rates averaged 85.9 percent, compared with 1.06 percent and 87.8 percent for the third quarter of 2005. Gold ore grades averaged 0.83 grams per metric ton (g/t) and recovery rates averaged 80.5 percent in the third quarter of 2006, compared with 1.16 g/t and 80.6 percent for the third quarter of 2005. Average ore grades improved during the third quarter of 2006, compared to the first half of 2006. The highest grades of 2006 are expected to be mined in the fourth quarter.

Mill throughput, which varies depending on ore types being processed, averaged 230,100 metric tons of ore per day in the third quarter of 2006 compared with 216,300 metric tons of ore in the third quarter of 2005.

Production from PT-FI's Deep Ore Zone (DOZ) underground mine averaged 47,200 metric tons of ore per day in the third quarter of 2006, representing 21 percent of mill throughput. DOZ continues to perform above design capacity of 35,000 metric tons of ore per day. PT-FI is expanding the capacity of the DOZ underground operation to a sustained rate of 50,000 metric tons per day with the installation of a second crusher and additional ventilation, expected to be completed in mid-2007. PT-FI anticipates a further expansion of the DOZ mine to 80,000 metric tons per day. The DOZ mine is one of the world's largest underground mines.

Realized copper prices nearly doubled to an average of $3.43 per pound in the third quarter of 2006 from $1.73 per pound in the third quarter of 2005. The spot copper price on the London Metal Exchange (LME) closed at $3.54 per pound on October 16, 2006. Realized gold prices improved by 37 percent to an average of $608.57 per ounce in the third quarter of 2006 from $445.79 per ounce in the third quarter of 2005. The London P.M. gold fixing price closed at $595.10 per ounce on October 16, 2006.

FCX's concentrate sales for the third quarter of 2006 included 231.6 million pounds of copper, priced at an average of $3.43 per pound, subject to final pricing over the next several months. Each $0.05 change in the price realized from the September 30 price would result in an approximate $6 million effect on FCX's 2006 net income. Third-quarter 2006 adjustments to concentrate sales recognized in prior quarters increased revenues by $33.3 million ($17.6 million to net income or $0.08 per share) compared with $48.8 million ($25.9 million to net income or $0.12 per share) in the third quarter of 2005.

PT-FI's share of annual sales in 2006 is currently projected to approximate 1.2 billion pounds of copper and 1.7 million ounces of gold. PT-FI expects its fourth-quarter operations to benefit from access to higher grade material, providing estimated sales of approximately 415 million pounds of copper and 470 thousand ounces of gold. 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. The achievement of PT-FI's sales estimates will be dependent, among other factors, on the achievement of targeted mining rates, the successful operation of PT-FI production facilities, the impact of weather conditions at the end of fiscal periods on concentrate loading activities and other factors.

PT-FI's mine plans are based on latest available data and studies, which take into account factors such as mining and milling rates, ore grades and recoveries, economic conditions and geological/geotechnical considerations. PT-FI updates these plans to incorporate new data and conditions, with the objective of operating safely, managing risks and maximizing economic values. While ongoing analyses may alter current expectations, PT-FI estimates its average annual sales for the period 2006 - 2010 to approximate 1.24 billion pounds of copper and 1.9 million ounces of gold.

PT-FI is continuing to analyze its longer range mine plans to assess the optimal design of the Grasberg open pit, which may affect the timing of development of the Grasberg underground block cave ore body. The analysis is incorporating the latest geological and geotechnical studies, costs and other economic factors to develop the optimal timing for transitioning from the open pit to the Grasberg block cave. PT-FI's previous plan included the transition from the Grasberg open pit to the Grasberg block cave ore body in 2015. PT-FI expects to complete the current studies on longer range plans by year-end 2006.

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PT-FI's unit net cash costs, including gold and silver credits, averaged $0.70 per pound of copper during the third quarter of 2006, compared with $0.39 per pound in the 2005 quarter. The higher unit net cash costs in the 2006 period reflect increased unit production costs (lower volumes, higher energy, labor and other input costs and the impact of changes in accounting for stripping costs) and higher treatment charges and royalties attributable to increased copper prices. Partly offsetting the higher costs were higher gold credits in 2006 reflecting higher average realized prices for gold. 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.

On January 1, 2006, FCX adopted Emerging Issues Task Force Issue No. 04-6, "Accounting for Stripping Costs Incurred during Production in the Mining Industry" (EITF 04-6), which requires that stripping costs be included in costs of sales as incurred beginning in 2006. Upon adoption of EITF 04-6, FCX eliminated its deferred mining cost asset ($285.4 million) at December 31, 2005, net of taxes, minority interest share and inventory effects ($135.9 million), as a cumulative effect adjustment which reduced its retained earnings on January 1, 2006. Unit site production and delivery costs were net of deferred mining costs of $0.05 per pound ($15.8 million) in the third quarter of 2005 and $0.07 per pound ($68.6 million) in the first nine months of 2005.

Assuming average copper prices of $3.25 per pound and average gold prices of $575 per ounce for the fourth quarter of 2006 and achievement of current 2006 sales estimates, PT-FI estimates that its annual 2006 unit net cash costs, including gold and silver credits, would approximate $0.70 per pound. Estimated unit net cash costs for 2006 are projected to be higher than the 2005 average, primarily because of lower 2006 copper and gold sales volumes, higher treatment charges and royalties attributable to increased copper prices, higher energy and other input costs and the change in the accounting treatment of stripping costs. Estimated average 2006 unit net cash costs are higher than previous estimates of $0.66 per pound, primarily reflecting the impact of higher copper prices on treatment charges and royalties, and increased energy and labor costs. Unit net cash costs for 2006 would change by approximately $0.01 per pound for each $25 per ounce change in the average price of gold in the fourth quarter.

SMELTER OPERATIONS

FCX's investment in smelters serves an important role in its concentrate marketing strategy. Through downstream integration, FCX assures placement of a significant portion of its concentrate production. Taking into account taxes and minority interests, an equivalent change in PT-FI and Atlantic Copper treatment charges essentially offset in FCX's operating results. Treatment charges consist of a base rate and in certain contracts, price participation based on copper prices. The difference between PT-FI's and Atlantic Copper's treatment charges in the third quarter of 2006 primarily reflects variations in price participation provisions in long-term contracts and spot purchases with no price participation by Atlantic Copper during the period. Essentially all of PT-FI's concentrate is sold under long-term contracts.

Atlantic Copper treated 244,500 metric tons of concentrate and scrap in the third quarter of 2006, compared with 253,600 metric tons in the year-ago period. Atlantic Copper produced 124.6 million pounds of cathodes and sold 125.2 million pounds of cathodes during the third quarter of 2006, compared with cathode production of 138.2 million pounds and sales of 138.5 million pounds during the third quarter of 2005. Treatment charges received by Atlantic Copper averaged $0.32 per pound during the third quarter of 2006 and $0.26 per pound during the third quarter of 2005. The increase in treatment charges in the 2006 period reflects higher market rates and price participation under the terms of Atlantic Copper's concentrate purchase and sales agreements. Cathode cash unit costs averaged $0.19 per pound in the third quarter of 2006 and $0.16 per pound in the third quarter of 2005 (see attached presentation, "Cathode Cash Unit Costs"). Higher unit costs in the 2006 period primarily reflect the impact of lower volumes.

Atlantic Copper reported operating income of $20.1 million for the third quarter of 2006, compared with $17.2 million in the 2005 period. The positive results in the 2006 period primarily reflect higher treatment charges, partly offset by lower volumes. Each $0.01 change in treatment charge rates equates to approximately $6 million of Atlantic Copper annual operating income.

PT Smelting, PT-FI's 25 percent-owned Indonesian smelting unit, treated 214,900 metric tons of concentrates in the third quarter of 2006, compared with 223,000 metric tons in the year-ago period. PT Smelting is completing an expansion of its production capacity from 250,000 metric tons of copper metal per year to 270,000 metric tons of copper metal per year. PT Smelting produced 127.7 million pounds of cathodes for the third quarter of 2006, compared with cathode production of 144.7 million pounds during the third quarter of 2005. The lower volumes in the 2006 period reflects the ramp-up in production following completion in the second quarter of a 22-day maintenance turnaround. PT Smelting's cathode cash unit cost per pound totaled $0.20 per pound in the third quarter of 2006 and $0.13 per pound in the year-ago period (see attached presentation, "Cathode Cash Unit Costs"), primarily reflecting the impact of higher energy costs and lower volumes in 2006. PT-FI's equity interest in PT Smelting's earnings totaled $1.5 million, $1.2 million to net income or less than $0.01 per share, in the third quarter of 2006 compared to $1.3 million, $1.1 million to net income or less than $0.01 per share, in the 2005 quarter. In October 2006, PT Smelting temporarily suspended smelter operations following an equipment failure at the oxygen plant supplying the smelter. PT Smelting expects to resume operations in mid-December 2006. PT-FI's share of the financial impact of the downtime to be recognized in the fourth quarter is estimated to approximate $11 million ($9 million to net income).

FCX defers recognition of profits on PT-FI's sales to Atlantic Copper and on 25 percent of PT-FI's sales to PT Smelting until the final sales to third parties occur. Changes in these net deferrals resulted in a reduction to FCX's net income totaling $44.4 million, $0.20 per share, in the third quarter of 2006, compared with $1.5 million, $0.01 per share, in the third quarter of 2005, and an addition of $13.1 million, $0.06 per share, in the first nine months of 2006, compared with a reduction of $10.0 million, $0.05 per share, in the first nine months of 2005. At September 30, 2006, FCX's net deferred profits on PT-FI concentrate inventories at Atlantic Copper and PT Smelting to be recognized in future periods' net income after taxes and minority interests sharing totaled $104.9 million. Based on copper prices of $3.25 per pound and gold prices of $575 per ounce for the fourth quarter of 2006 and current shipping schedules, FCX estimates that the net change in deferred profits on intercompany sales will result in a decrease to net income of approximately $25 million in the fourth quarter of 2006. The actual change in deferred intercompany profits may differ substantially from this estimate because of changes in the timing of shipments to affiliated smelters and metal prices.

EXPLORATION and MINE DEVELOPMENT ACTIVITIES

PT-FI's exploration efforts in 2006 are focused on testing extensions of the Deep Grasberg and Kucing Liar mine complex and other targets in Block A of its Contract of Work, the existing producing area of the Grasberg minerals district. FCX continues to assess the timing of resumption of suspended exploration activities in prospective areas outside Block A.

In 2004, PT-FI commenced its Common Infrastructure project, which will provide access to its large undeveloped underground ore bodies located in the Grasberg minerals district through a tunnel system located approximately 400 meters deeper than its existing underground tunnel system. In addition to providing access to its underground ore bodies, the tunnel system will enable PT-FI to conduct future exploration in prospective areas associated with its currently identified ore bodies. The tunnel system has reached the Big Gossan terminal and PT-FI is proceeding with development of the lower Big Gossan infrastructure. PT-FI has also advanced development of the Deep Grasberg spur and has completed 60 percent of the tunneling required to reach the Grasberg underground ore body. PT-FI expects the Deep Grasberg spur to reach the Grasberg underground ore body in the second half of 2007 and will begin multi-year mine development activities.

The Big Gossan underground mine is a high-grade deposit located near the existing milling complex. Aggregate capital expenditures for Big Gossan to be incurred over a four-year period which began in 2005 total approximately $225 million, $195 million net to PT-FI, with a ramp-up to full production of 7,000 metric tons per day by 2010 (average annual aggregate incremental production approximating 135 million pounds of copper and 65,000 ounces of gold, with PT-FI receiving 60 percent of these amounts).

As discussed above, PT-FI is expanding the DOZ underground mine to 50,000 metric tons per day from the current capacity of 35,000 metric tons per day. The 50,000 metric tons per day expansion is on track for completion in mid-2007. PT-FI anticipates expanding this mine further to 80,000 metric tons of ore per day. The success of the development of the DOZ mine, one of the world's largest underground operations, provides confidence in the future development of PT-FI's large scale undeveloped ore bodies.

CASH FLOWS and DEBT REDUCTIONS

FCX generated operating cash flows totaling $692.5 million during the third quarter of 2006 and $1.1 billion for the first nine months of 2006. Operating cash flows for the first nine months of 2006 were reduced by $299.8 million for working capital requirements. Capital expenditures totaled $67.7 million for the third quarter of 2006 and $178.0 million for the first nine months of 2006. FCX's capital expenditures for 2006 are currently estimated to approximate $250 million.

Using estimated sales volumes for the fourth quarter of 2006 and assuming average prices of $3.25 per pound of copper and $575 per ounce of gold for the remainder of 2006, FCX would generate operating cash flows approximating $1.7 billion in 2006. In the fourth quarter of 2006, each $0.10 per pound change in copper prices would affect 2006 cash flows by approximately $20 million and each $25 per ounce change in gold prices would affect 2006 cash flows by approximately $6 million.

Total debt as of September 30, 2006 was $774.5 million, $75.6 million net of $698.9 million of cash. Total debt was reduced by approximately $481 million in the first nine months of 2006, including $297 million in the third quarter. Third-quarter transactions included $286.1 million for the completion of a tender offer to induce conversion of FCX's 7% Convertible Senior Notes due 2011 into 9.3 million shares of FCX common stock and $12.5 million for the final mandatory redemption of FCX's Silver-Denominated Preferred Stock for $25.8 million. FCX recorded charges of $43.1 million ($35.9 million to net income, net of related reduction of interest expense, or $0.16 per share) in the third quarter of 2006 in connection with these transactions.

In July 2006, FCX and PT Freeport Indonesia entered into an amended credit agreement for a $465 million revolving credit facility compared with its previous $195 million facility that was scheduled to mature in September 2006. The new facility, which can be expanded to up to $500 million with additional lender commitments, matures in 2009 and no amounts are outstanding under the facility.

Following the debt repayments and redemptions during the first nine months of 2006, FCX's debt maturities for the remainder of 2006 total $59 million and total $82 million for the three-year period of 2007 through 2009. FCX will continue to consider opportunities to repay debt in advance of scheduled maturities. In addition, FCX has the option to call its 10acents% Senior Notes due 2010 (outstanding principal amount of $272.4 million) in February 2007.

FINANCIAL POLICY

FCX has a long-established tradition of returning cash to shareholders through dividends and share purchases. Based on current mine plans and subject to future copper and gold prices, FCX expects its cash flows to exceed budgeted capital expenditures by a substantial amount, which would provide opportunities to reduce debt further and return cash to shareholders through dividends and share purchases.

Financial transactions completed during the third quarter of 2006 totaled $503.6 million, including $297.3 million in debt reductions and $206.3 million in common stock dividends ($1.0625 per share). Dividends included a supplemental dividend of $0.75 per share paid on September 29, 2006. Year-to-date, FCX has completed approximately $1.14 billion in financial transactions, including debt reductions totaling $481.4 million, common stock dividends totaling $558.8 million ($2.9375 per share, including $2.00 per share in supplemental dividends) and $99.8 million in common stock purchases. Since December 2004, FCX has paid seven supplemental dividends totaling $699.4 million ($3.75 per share).

FCX has purchased a total of 7.8 million shares for $279.5 million (average of $36.05 per share) under its Board authorized 20-million share open market purchase program. As of October 16, 2006, 12.2 million shares remain available for purchase under the program. As of September 30, 2006, FCX had 196.9 million common shares outstanding.

The potential payment of future regular and supplemental dividends will be determined by FCX's Board of Directors and will be dependent upon many factors, including FCX's cash flows and financial position, copper and gold prices and general economic and market conditions. The timing of future purchases of FCX's common stock depends on a number of factors including the price of its common shares, its cash flows and financial position, copper and gold prices and general economic and market conditions.

FCX explores for, develops, mines and processes ore containing copper, gold and silver in Indonesia, and smelts and refines copper concentrates in Spain and Indonesia. Additional information on FCX is available on our web site, 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 treatment charge rates, projected operating cash flows, projected capital expenditures, the impact of copper and gold price changes, and the impact of changes in deferred intercompany profits on earnings. Accuracy of the projections depends on assumptions about events that change over time and is thus susceptible to periodic change based on actual experience and new developments. The declaration and payment of dividends is at the discretion of the company's Board of Directors and will depend on the company's cash flows and financial position, copper and gold prices and general economic and market conditions. FCX cautions readers that it assumes no obligation to update or publicly release any revisions to the projections in this press release and, except to the extent required by applicable law, does not intend to update or otherwise revise the projections 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, Indonesian political risks, weather-related risks, currency translation risks and other factors described in FCX's Annual Report on Form 10-K for the year ended December 31, 2005, and subsequent Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission.

This press release also contains certain financial measures such as unit net cash costs per pound of copper and cathode cash unit cost per pound of copper. As required by Securities and Exchange Commission Regulation G, reconciliations of these measures to amounts reported in FCX's consolidated financial statements are provided in the attachments to this press release.

A copy of this press release is available on our web site, "www.fcx.com." A conference call with securities analysts about third-quarter 2006 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, November 10, 2006.

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FREEPORT-McMoRan COPPER & GOLD INC.

PRODUCT REVENUES AND PRODUCTIONCOSTS

PT FREEPORT INDONESIA PRODUCT REVENUES AND UNIT NET CASH COSTS

Unit net cash costs per pound of copper is a measure intended to provide investors with information about the cash generating capacity of PT Freeport Indonesia's mining operations expressed on a basis relating to its primary metal product, copper. PT Freeport Indonesia uses this measure for the same purpose and for monitoring operating performance by its mining operations. This information differs from measures of performance determined in accordance with generally accepted accounting principles and should not be considered in isolation or as a substitute for measures of performance determined in accordance with generally accepted accounting principles. This measure is presented by other copper and gold mining companies, although PT Freeport Indonesia's measures may not be comparable to similarly titled measures reported by other companies.

PT Freeport Indonesia presents gross profit per pound of copper using both a "by-product" method and a "co-product" method. PT Freeport Indonesia uses the by-product method in its presentation of gross profit per pound of copper because (1) the majority of its revenues are copper revenues, (2) it produces and sells one product, concentrates, which contains copper, gold and silver, (3) it is not possible to specifically assign PT Freeport Indonesia's costs to revenues from the copper, gold and silver it produces in concentrates, (4) it is the method used to compare mining operations in certain industry publications and (5) it is the method used by PT Freeport Indonesia's management and Board of Directors to monitor its operations. In the co-product method presentation below, costs are allocated to the different products based on their relative revenue values, which will vary to the extent our metals sales volumes and realized prices change.

In both the by-product and the co-product method calculations below, PT Freeport Indonesia shows adjustments to copper revenues for prior period open sales as separate line items. Because the copper pricing adjustments do not result from current period sales, PT Freeport Indonesia has reflected these separately from revenues on current period sales. Noncash and nonrecurring costs, which consist of items such as stock-based compensation costs starting January 1, 2006, write-offs of equipment or unusual charges, have not been material. They are removed from site production and delivery costs in the calculation of unit net cash costs. As discussed above, gold and silver revenues, excluding any impacts from redemption of the gold- and silver-denominated preferred stocks, are reflected as credits against site production and delivery costs in the by-product method. Presentations under both methods are shown below together with a reconciliation to amounts reported in FCX's consolidated financial statements.

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