Making Our Future Successful exploration continues to add reserves to the rich  Grasberg minerals district. Contract of Work Block A Ore Bodies Plan View N K ucing Liar “Spur” Grasberg Block Cave “Spur”  MLZ  “Spur” Common Infrastructure Underground Ore Bodies Existing  Infrastructure Big Gossan  “Spur”  Portals (Ridge Camp) Grasberg Pit Kucing Liar Grasberg Underground Big Gossan Mill This dia gram illustrates the layout of the current 2.8 billion metric  tons Grasberg minerals district reserves being connected  by proj ected common infrastructure for development and future  product ion. Exploration, Reserves and Development  PT Freeport  Indonesia’s Grasberg mining complex and the surround ing  Grasberg minerals district is known as one of the worl d’s  richest ore bodies. For our geologists and mine plann ers  working in this highly mineralized district, the opportu- nity to continue to explore for additional resources an d  to establish additional proven and probable reserves i s  exciting and stimulating.  Exploration results have continued to add value  for our Company. Recent reserve additions have bee n  achieved at the Deep Mill Level Zone (MLZ), and the likelihood of further additions is promising. During 20 04,  the PT Freeport Indonesia exploration team establishe d  net additions, before 2004 production, to the aggrega te  proven and probable reserves at the Grasberg mining  complex of 141 million metric tons of ore, representin g  increases of 2.9 billion recoverable pounds of copper  and  2.2 million recoverable ounces of gold.  These additions were largely the result of excellen t  drilling results at the Deep MLZ deposit, a 146-million - metric-ton ore body with average grades of 1.22 perce nt  copper and 0.95 grams per metric ton gold. Additiona l  engineering studies evaluating drilling results on th e  western side of that ore body are expected to be compl eted  in 2005 and could increase the size of the ore body.  We  are also conducting feasibility studies on developmen t  of the Big Gossan ore body containing 33 million metr ic  tons of high-grade proven and probable reserves with  approximately 1.6 billion pounds of copper and 0.7 mil lion  ounces of gold. We are evaluating an open-stope mine  with  the potential of reaching full production in early 2010. 10 |  FREEPORT-McMoRan COPPER & GOLD INC. Background photo:  The new Ali Budiardjo adits open access for the future production of our significant underground reserves.