Freeport-McMoRan Copper & Gold is taking initial steps to possibly resume mining operations at its Cobre copper mine within a few years and process the ores at its Chino operations. The proposed mine plan would require the construction of a new, 3 1/2-mile-long haul road linking Cobre and Chino. Before Freeport- McMoRan can build the road, the Bureau of Land Management (BLM) will be required to produce an Environmental Assessment (EA) for the project.

Proposed Haul Road

The proposed road would be located on the east side of the Fierro/Hanover Canyon and would cross over NM Highway 152 east of the intersection with NM Highway 356. The new road would be about 120 feet wide to accommodate trucks with haulage capacity of over 250 tons per load and would be dedicated primarily to off- road haul truck traffic. The haul road would be used 24 hours per day, seven days per week. An average of 135 truck trips per day would be made (six truck trips per hour). Peak usage could temporarily rise as high as about 340 truck trips per day (14 truck trips per hour). An approximately three- to four-year period is anticipated before construction of the road could begin. Mining would start about one year after the start of haul road construction and is currently expected to extend for a minimum of ten years. There would be no ore haulage on the existing public highway.

Environmental Assessment

Construction of the new road would take place primarily on private property held by Cobre Mining Co., but the alignment crosses five small parcels of land administered by the BLM. These BLM parcels constitute about 3 percent (about 3.4 acres) of the total area proposed to

be impacted by the haul road. The company will be working with BLM and the BLM's consultant as BLM produces an EA to identify and evaluate potential environmental impacts associated with this proposed action, including analyzing reasonable alternatives to the proposed action. Public input is part of the EA process.

Advantages of Trucking Ore versus On-site Processing

In the past, all ore mined at Cobre was processed on the Cobre property. By trucking the ore to the Chino operations, Freeport-McMoRan can optimize the use of its existing copper processing facilities at Chino for Cobre's ore. As a result, this haul road will eliminate the need for Cobre Mining to build leach stockpiles or conduct copper recovery operations at the Cobre property.

Community Engagement Policy

Communications with the community are important to us. In addition to this fact sheet, we have established an "Information Line" so residents can let us know of any concerns or ask questions about this project. That number is (575) 912-5150, which is a local call in the Mining District area. Please call at any time and leave a message and we will get back to you as quickly as possible. Additionally, an open house will be scheduled in the area to provide information and to gather public input. The time and place will be publicized.

Questions and Answers

Q: Why not use trains instead of haul trucks?

A: The rail line runs through populated area of Vanadium and Hanover. To haul the required amount of ore to Chino, trains would pass through this area two to four times per hour, 24 hours per day, and regulations require sounding horns at each road crossing. Haul trucks can be driven farther from populated areas, with reduced noise and no risk to the public at road intersections. In addition, ore hauled by rail would have to be re-handled by haul trucks before the ore reached its final destination, making rail transport less efficient.

Q: How long do you expect the haul road to be in use?

A: The haul road could be in use as long as copper remains economical to produce from Cobre. A minimum of ten years is anticipated.

Q: Will you limit the hours of operation to daylight hours only?

A: As is typical in mining operations, including Chino and Tyrone, haul trucks are scheduled to run on a 24-hour, seven-day a week basis.

Q: I'm concerned that a haul truck will drive off the road.

A: In compliance with company safety practices and federal mine safety regulations, eight-foot-high safety berms will be built and maintained along the entire length of the haul road to prevent this from happening.

Q: Will there be vibration from the trucks? What about noise from the trucks?

A: Studies will be conducted as part of the EA to test whether vibration from the trucks will cause damage to any structures; however, the company believes that the haul road is too far away to do so. Studies will also be conducted to predict the noise levels from the haul trucks at all locations within the Fierro/Hanover Canyon. If the noise levels are predicted to be too high, measures will be taken to reduce the noise levels (such as higher safety berms or sound barriers).

Q: Fierro Road is narrow and has several dangerous curves. Restarting the mine will increase traffic on the road and increase the risk of accidents. Will Freeport-McMoRan widen Fierro Road and make it safer?

A: Fierro Road is maintained by Grant County. Once a new haul road is in place for the haulage of ore from Cobre, it can also be used for other mine- related traffic, diverting truck traffic away from Fierro Road.

Proposed route for new haulage road, shown in violet