Freeport-McMoRan Copper & Gold Inc. - 2010-09-20

Plans to purchase $500 million of 5 3/4% convertible perpetual preferred stock of McMoRan Exploration Co. in connection with McMoRan's proposed acquisition of Gulf of Mexico oil and gas assets from Plains Exploration & Production Co. for approximately $818 million. The preferred stock is convertible into McMoRan common stock at a conversion price of $16 per share. A group of institutional investors has also agreed to concurrently purchase $400 million in convertible securities, including a portion of the preferred stock, of McMoRan.