International Projects Cerro Verde

Cerro Verde Expansion September 2016

Freeport-McMoRan Mining Assets

Sociedad Minera Cerro Verde Mine Location

 35 km from Arequipa  90 km from Matarani Port

Population

 Peru - 30 million  Arequipa – 1.2 million

Elevation of the Mine

 2,700 m.a.s.l. (8,900 ft)

Shareholders

 Freeport-McMoRan Inc.: 53.56%  Sumitomo: 21.00%  Buenaventura: 19.58%  Shareholders in Lima Stock Exchange: 5.86%

Cerro Verde Operations Pre Expansion

360,000 MT/day Mined

40,000 MT/day Crushed Leach

120,000 MT/day Concentrator (CV1) 9,000 MT/day ROM Leach

Approximately 2,450 employees

YE 2015 Copper Mineral Reserves Mineral Reserves

3.9 billion metric tons at 0.37% Cu and 0.014% Mo and 1.48 g/t Ag, Stripping Ratio = 0.97

Mine Life

30 years (2045)

Life of Mine Production

28.2 billion pounds of copper, 0.7 billion pounds of molybdenum, 85.2 million ounces of silver

Cerro Verde Expansion Beginnings

In 2010, Cerro Verde S.A.A. initiated a feasibility study to evaluate the possibility of expanding its Production Unit according to its large reserve of sulphides and oxides, by means of the construction of a second concentrator (C2) with:  a designed capacity of 240,000 MT/day  a leaching platform (PAD1, Phase III) with a capacity of 100,000 MT/day  mine development  a series of similar auxiliary and/or complementary facilities  the relocation and/or modification of various existing infrastructure

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Cerro Verde Mine Operations 2016 Mined Material  630,000 MT/day (New Mined)  730,000 MT/day (Total Material Moved)

2016 Ore  360,000 MT/day Sulfide Ore  40,000 MT/day Crushed Leach Ore  40,000 MT/day ROM Ore

Average Grade of Mined Ore  0.387% CuT (3.874 Kg. Cu/MT)

 This includes primary sulphides (high, low grade) and leachable (high, low grade)

Mine Fleet Haul Trucks (88) Cat 793’s (9) Komatsu 930 (23-27) Additional trucks by EOY 2018 Shovels (4) P&H 4100 AC (2) P&H 4100 DC (3) P&H 2800 (2) O&K RH200 (1) Additional P&H 4100 DC in 2017 Production drills (10) PV271 (2) Additional PV271’s in 2017

Concentrators CV1

CV2

Total cost: US$890 million

Total cost: US$4.5 billion

 24-month schedule  Construction started in 4Q 2004  The first line started operations in 4Q 2006  The second line started operations in 1Q 2007  Full capacity production achieved in June 2007

 EISA was approved on 2012  Construction started in March 2013  Produced first copper concentrate in September 2015  Full capacity production achieved in December 2015  Inauguration in May 2016

CV2 Concentrator

CV2 – Primary Crushing (2) 60 X 113 Gyratory Primary Crushers (FLS)

CV2 – Secondary & Tertiary Crushing

(8) Cone Crushers – Metso MP 1250 (8) Polysius High Pressure Grinding Rolls HPGR 2.4M Dia X 1.6M Rolls (5 MW)

CV2 – Ball Mills (6) Polysius Ball Mills 8.2M dia X 14.6M 22 MW each

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CV2 – Flotation

Flotation Cells 50 X 130 M3 Flotation Cells 66 X 257 M3

CV2 – Tailings Thickeners

Linga Tailings Impoundment

Water – Our Priority  Arequipa is located in a desert (Atacama desert)  The Peruvian government, authorities of Arequipa, and Cerro Verde worked together to plan and ensure the hydric resource for future generations - Collect water in Arequipa´s highlands with regulated dam system

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Build a potable water treatment plant, which is one of the most modern in South America (PWTP II) -

It benefits 300,000 people currently and could benefit 750,000 in the future

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Investment of US$120 million

Upgrade the potable and sewage water network in order to assure the water resource can reach homes -

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Investment of US$40 million

Decontaminate the Chili River with a wastewater treatment plant

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Waste Water Treatment Plant

The Chili River is key for life in Arequipa

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The Chili River is the most important water source in Arerquipa; it is the key factor for economic activities such as agriculture, commerce, tourism and mining

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It was used to receive all waste water produced in the city

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SEDAPAR and Cerro Verde worked together to improve the quality of the Chili River through the construction of a wastewater treatment plant (WWTP)

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The WWTP was financed totally by Cerro Verde

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Operation and maintenance to be the responsibility of Cerro Verde for a minimum of the first two years

Investment to construct the WWTP was approximately US$500 million. 18

Enlozada WWTP A Win-Win Project

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In exchange for financing the WWTP, Cerro Verde uses up to 1 m3/sec of treated water for the expansion of its operations The rest of the treated water is returned to the Chili River The WWTP benefits all of Arequipa: - Health – clean water that meets national and international standards - Agriculture – fresh water for irrigation - Tourism – quality recreational areas are being rejuvenated - Environment – positive impact on flora and fauna - Great sustainable development project that completes the virtuous circle of water

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Great example of cooperation and joint team work between authorities and private companies 19

Transporting Concentrate to Matarani Port  Transport of sealed 15 metric ton containers

 Transport in trucks from CV to La Joya transfer station, approx. 52 km  Transport in train from La Joya to Matarani, approx. 55 km

Concentrate Transport at Port

Estimated 2016 Production Copper in Concentrates 1.04 billion lbs Cu in 2.0 million metric tons of copper concentrate

Copper Cathodes 110 million lbs Cu

Molybdenum in Concentrates 21 million lbs Mo in 17,500 metric tons of concentrate

Sustainable Development At Cerro Verde, we contribute to the sustainable development of Arequipa, through the integration of economic growth, environmental protection, social progress and the effective governance of our region.

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Community Relations Education

Health & Nutrition

Agriculture

Training

Community Relations Small Businesses

Community Environmental Projects

Infrastructure

Arts & Culture

Community Relations

Santísimo Sacramento Chapel

La Compañía Church

Workforce Approximately 4,100 employees and 1,800 contractors at Cerro Verde

Orgullo nos Une “Pride Unites Us”

Thank you