#1#2#3#4#5Preliminary Discussion Materials Overriding Royalty Interest - Unrisked Unrisked Ultra Deep Revenue Marketing and Transportation Costs Severance and Ad Valorem Taxes Net Ultra Deep Revenue Overriding Royalty Interest 4,0% of Revenue Discount Rate 8,0% 9.0% 10.0% 11.0% 12.0% 15,0% 20.0% 5 Years Discount Rate $73.7 71.2 68.8 66.6 64.4 58.4 50.0 10 Years 8.0% 9.0% 10.0% 11.0% 12.0% 15.0% 20.0% $2.9 $14.0 Unrisked Sensitivity (Strip Pricing) - Term (Total Value) Term 15 Years 20 Years $382.1 358.5 336.6 316.3 297.6 249.0 188.2 Strip 2013E $895.6 809.2 732.9 665.5 605.7 462.9 308.2 Overriding Royalty Interest Summary - Unrisked 2014E 2015E 2016E 2017E 2018E $75/$3 $702.0 643,9 591.6 544.5 501.9 396,8 276.2 $73.6 $594.8 537.5 486.9 442.2 402.5 307.8 205.2 (2.3) $71.3 $360,4 $895.6 809.2 732.9 665.5 605.7 462.9 308.2 Unrisked Sensitivity (20 Year Term) - Price (Total Value) Price Deck (11.1) $349.2 Life $1,273.0 1,087.7 941.0 822.6 725.5 518.6 325.8 $90/ $4 $105/$5 $787.5 711.6 644.7 585.5 533.0 407.5 271.7 $686,0 $980.2 885.8 802.5 728.7 663.4 507.3 338.1 $665.4 (20.6) $26.6 Discount Rate $1,144.7 (33.3) $1,111.4 8.0% 9.0% 10.0% 11.0% 12.0% 15.0% 20.0% Discount Rate $1,685.3 (49.0) Note: Based on a $17.00 per share aggregate implied offer value, 231.6 millon fully diluted shares and a March 1, 2013 closing date. EVERCORE PARTNERS 3 $1,636.4 5 Years 8.0% 9.0% 10.0% 11.0% 12.0% 15.0% 20.0% $0.32 0.31 0.30 0.29 0.28 0.25 0.22 Strip ($ in millions, except per share values) 2019E $2,288.2 (66.5) $3.87 3.49 3.16 2.87 2.61 2.00 1.33 $2,221.7 10 Years $44.5 $65.5 $88.9 Unrisked Sensitivity (Strip Pricing) - Term ($/Share) Term 15 Years $3.03 2.78 2.55 2.35 2.17 1.71 1.19 $1.65 1.55 1.45 1.37 1.28 1.08 0.81 2020E $75/$3 $2,925.3 $2.57 2.32 2.10 1.91 1.74 1.33 0.89 (85.1) $2,832.3 $113.3 20 Years $90/ $4 Confidential $3.40 3.07 2.78 2.53 2.30 $3,449.2 (100.4) (47.5) 1.76 1.17 2021E $3,301.3 Unrisked Sensitivity (20 Year Term) - Price ($/Share) Price Deck $3.87 3.49 3.16 2.87 261 2.00 1.33 $132.1 Life $105/ $5 $4.23 3.82 $3,891.2 (113.3) (90.9) $3,687.1 3.46 3.15 2.86 2.19 1.46 20221 $5.50 4.70 4.06 3.55 $147.5 3.13 2.24 1.41 MCMoRan#6Preliminary Discussion Materials Fully Diluted Shares Aggregate Offer Price Basic Common Shares Outstanding RSUS Diluted Shares (Before Options) Dilutive Options (Treasury Method) Other Dilutive Securities Fully Diluted Shares (Treasury Method) Market Capitalization Net Debt Enterprise Value Net Debt 11.875% Senior Notes Due 2016 Convertible Notes Preferred Equity Less Cash: Net Debt Fully Diluted Shares Assuming a $17.00 Aggregate Offer Price 8.0% Convertible Perpetual Preferred Stock $17.00 161,878,049 103,877 161,981,926 2,699,199 66,954,710 231,635,835 $3,938 108 $4,046 $300 (192) $108 Note: Share and option numbers as of September 30, 2012. Assumes a March 1, 2013 closing date. EVERCORE PARTNERS Value Original Conversion Rate Make Whole-Premium New Conversion Rate Parameters At $17.00 Offer Price Value $121 Coversion Price per Share $6.84 Common Shares (as converted) 1,771,637 1,771,637 5.75% Convertible Perpetual Preferred Stock, Series 1 Parameters At $17.00 Offer Price Value Original Conversion Rate Make Whole-Premium New Conversion Rate (S in millions, except per share values) 62.50 6.00 62.50 68.50 Coversion Price per Share $16.00 $14.60 Common Shares (as converted) 12,500,000 13,700,538 5.75% Convertible Perpetual Preferred Stock, Series 2 Parameters At $17.00 Offer Price $500.0 62.50 Coversion Price per Share Common Shares (as converted) 4.00%Convertible Senior Notes Due 2017 Value Original Conversion Rate Make Whole-Premium New Conversion Rate Coversion Price per Share Common Shares (as converted) 5.25% Convertible Notes Due 2013 Value Coversion Price per Share Common Shares (as converted) Total Converted Shares $200.0 62.50 Confidential 62.50 3.90 62.50 66.40 $16.00 $15.06 31,250,000 33,197,603 Parameters At $17.00 Offer Price $200.0 62.50 62.50 8.46 62.50 70.96 $16.00 $14.09 12,500,000 14,192,504 Parameters At $17.00 Offer Price $67.8 $16.575 4,092,428 4,092,428 66,954,710 MCMoRan