|McMoRan Ultra-Deep
Program Update

Richard C. Adkerson

James R. Moffett

Co-Chairman of the Board,

President & CEO

Co-Chairman of the Board
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|2

Cautionary Statement

This is an oral presentation which is accompanied by slides. Readers are urged to review our SEC filings.

This presentation contains forward-looking statements that involve a number of assumptions, risks and uncertainties that could cause actual
results to differ materially from those contained in the forward-looking statements. We caution readers that those statements are not guarantees
of future performance or exploration and development success, and our actual exploration experience and future financial results may differ
materially from those anticipated, projected or assumed in the forward-looking statements. Such forward-looking statements include, but are not
limited to, statements regarding various oil and gas discoveries, oil and gas exploration, development and production activities, capital
expenditures, reclamation costs, anticipated and potential production and flow rates, and other statements that are not historical facts. No
assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what
impact they will have on our results of operations or financial condition.  Important factors that can cause actual results to differ materially from
the results anticipated by forward-looking statements include, but are not limited to, those associated with general economic and business
conditions, failure to realize expected value creation from acquired properties, exercise of preferential rights to purchase variations in the market
demand for, and prices of, oil and natural gas, drilling results, unanticipated fluctuations in flow rates of producing wells due to mechanical or
operational issues (including those experienced by wells operated by third parties where we are a participant), oil and natural gas reserve
expectations, the potential adoption of new governmental regulations, failure of third party partners to fulfill their commitments, the ability to
satisfy future cash obligations and environmental costs, adverse conditions, such as high temperatures and pressure that could lead to mechanical
failures or increased costs, the ability to hold current or future lease acreage rights, the ability to satisfy future cash obligations and environmental
costs, access to capital to fund drilling activities, as well as other general exploration and development risks and hazards, and other factors
described in more detail in Part I, Item 1A. "Risk Factors" included in our Annual Report on Form 10-K for the year ended December 31, 2010, filed
with the SEC.

Investors are cautioned that many of the assumptions upon which our forward-looking statements are based are likely to change after our
forward-looking statements are made, including for example the market prices of oil and natural gas, which we cannot control, and production
volumes and costs, some aspects of which we may or may not be able to control. Further, we may make changes to our business plans that could
or will affect our results. We caution investors that we do not intend to update our forward-looking statements, notwithstanding any changes in
our assumptions, changes in our business plans, our actual experience, or other changes, and we undertake no obligation to update any forward-
looking statements.

The SEC requires oil and gas companies, in their filings with the SEC, to disclose proved reserves that a company has demonstrated by actual
production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. Beginning
with year-end reserves for 2010, the SEC permits oil and gas companies, in their filings with the SEC, to disclose probable and possible reserves,

as such terms are defined by the SEC. We use certain phrases and terms in this presentation, such as "gross and net unrisked potential" and
"resource potential," which the SEC's guidelines prohibit us from including in filings with the SEC. "Gross and net unrisked potential" and "resource
potential" do not take into account the certainty of resource recovery, which is contingent on exploration success, technical improvements in
drilling access, commerciality and other factors, and are therefore not indicative of expected future resource recovery and should not be relied
upon. We urge you to consider closely the disclosure of proved reserves included in McMoRan's Annual Report on Form 10-K for the year ended
December 31, 2010.
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|3

A New Geologic Trend

on the Gulf of Mexico Shelf

2007

2008

2010

2011

2009

Acquired Rights

to Ultra-Deep
Acreage/Prospect
Inventory

Successfully
Deepened
Blackbeard
West

Major Discovery at
Davy Jones

Initiated Drilling

at Davy Jones to
Target Wilcox
Using Data from
Blackbeard West

Davy Jones
Offset Well

Encountered 4
Hydrocarbon
Bearing Sands in
Miocene/Oligocene

Deepest Well Drilled
Below Mud Line in
GOM

Unlocked Potential
for Major New Trend
on Shelf

High Quality Wilcox
Pays on Large
Structure

Sets up Multi-Tcfe
Opportunity on
20,000 Acre Block

Initiated Design for
Completion and Flow
Test

Initiated Drilling at
Blackbeard East

Positive Drilling
Results in Miocene
Above 25,000'

Data Indicates
Opportunities for
Conventional
Completions Below
Salt Weld Above
25,000'

Confirms Wilcox Sand
Continuity 21/2 Miles Away

Encountered Tuscaloosa
Sands and Cretaceous
Carbonate - Additive to
Resource Potential

Blackbeard East

Encountered First Frio
Hydrocarbon Bearing
Sand on Shelf Offshore LA

Sparta Sand Also Seen at
Bottom of Hole

Lafitte Drilling
Below Salt Weld

Completion of
Engineering
Design for Davy
Jones Test

Valuable Data Points from 4 Wells Confirm Ultra-Deep Geologic Model
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|4

Conceptual Model - Ultra-Deep Play

McMoRan Broadly Recognized as Industry Leader in This New Exploration Frontier

Data received to date from Davy Jones/Blackbeard West & East confirm McMoRan's original geologic
modeling, which correlates the objective sections on the Shelf below the salt weld in the Miocene and older
age sections to those productive sections seen in deepwater discoveries by other industry participants.
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|5

Activities to Date

Have De-risked Ultra-Deep Play

Achieved Technical Feasibility of Drilling/Evaluating Below Salt Weld

on Shelf

Drilling Data Indicate Presence of Well-developed Reservoirs Below

Salt in Shallow Water

Identified 5 Hydrocarbon Bearing Geologic Sections

Middle/Lower Miocene

Wilcox

Frio

Tuscaloosa

Cretaceous Carbonates

High Quality Potential Reservoirs with Large Structural Features

Developing Technology for High Pressure/High Temperature Completions

Opportunities to Reduce Drilling Costs

Identification of Conventional Completion Opportunities

Prospects with Multi-Tcfe Potential
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|6

What's Next?

Flow Testing

Reserve Bookings Following
Successful Flow Tests

Additional Delineation Drilling

Apply Model on Other Prospects

Within Newly Defined Trend
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|7

Ultra-Deep Prospects/Potential

BONNET

ENGLAND

DRAKE

HOOK

CAPTAIN BLOOD

BARATARIA

CALICO JACK

LAFITTE

DAVY JONES

JOHN PAUL JONES

BLACKBEARD EAST

(in progress)

BLACKBEARD WEST

Unrisked Potential for Ultra-Deep Focus Area: 30+ Tcfe Gross, 14+ Tcfe Net*

Gross Unrisked Potential Could Exceed 100 Tcfe

____________________

* Assumes McMoRan has rights to 48% NRI; actual WI & NRI are pending unitization and parties' participation on a per prospect basis.

Ultra-Deep Prospects

Ultra-Deep Discoveries

McMoRan Acreage

MMR Wilcox/Cretaceous Play

MMR Miocene/Wilcox Play

MMR Oligocene/Frio Play

NOTE: We use certain phrases and terms in this presentation, such as "gross and net unrisked potential" and "resource potential"  which the SEC's guidelines prohibit us from including

           in filings with the SEC. See Cautionary Statement.

BARBOSA

Drilling

MORGAN

QUEEN ANNE'S REVENGE
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|8

Blackbeard West

Drilling Technology of Ultra-Deep Wells

Presence of Miocene/Oligocene Age
Sands Below 30,000'

Unlocked Potential for Major New
Geologic Trend

Log from Original Well
Drilled by Previous
Operator to 30,067'

in 2006

What Have We Learned?

25,000' Offset Well to Evaluate Miocene
Sands Seen at Blackbeard East Below

Salt Weld

Will Assess Completion of #1 Well Following
Davy Jones Flow Test

What's Next?

MMR Successfully Deepened
3,000' and Logs Indicated

4 Hydrocarbon Bearing Sands
Below 30,067'

Oligocene

Disturbed Zone (Section)
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|9

Blackbeard East

Confirmed Presence of Hydrocarbon Bearing
Miocene Age Sands Above 25,000'

Data Indicate Conventional Completion
Opportunities Available Below Salt

Confirmed Presence of First Hydrocarbon
Bearing Frio Sands Seen Offshore LA on Shelf -
Potential New Trend for Ultra-Deep

What Have We Learned?

Pending Resolution of Mechanical Issue, Plan

to Deepen Well to Evaluate Sparta Sands

Updip Delineation Well to Evaluate Miocene
Sands Seen Above 25,000'

What's Next?

Upper Miocene

Middle Miocene

Frio
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|10

Davy Jones

Recent Data Expands Resource Potential of Davy Jones

29,000'
Tuscaloosa Sand
with Mid-20%
Porosity

Wilcox Sands
with 13-15%
Porosity

Lower
Cretaceous
Carbonates

Wilcox Sands
with 13-20%
Porosity

Discovery Well

Offset Well
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|11

Davy Jones

2 Wells Confirmed Presence of Wilcox Age Sands on Shelf & Structural
Continuity

Confirmed Prospectivity of Tuscaloosa Sands and Cretaceous Carbonates

What Have We Learned?

Completion/Flow Testing of Nos. 1 & 2 Wells

New Wilcox Delineation Well on Northern Part of Structure

Well to Evaluate Tuscaloosa and Lower Cretaceous Updip

What's Next?

Recent Data Expands Resource Potential of Davy Jones
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|Davy Jones Distance From Carbonate
Cretaceous Fields Offshore/Onshore Mexico

12

Davy Jones

Cantarell Complex
Offshore Mexico

680 miles

Tabasco Field
Onshore Mexico
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|13

Davy Jones Completion Update

Equipment Being Procured Includes:

25,000 psi Production Tree

25,000 psi Safety Valve

25,000 psi Blowout Preventer

Specialized Tubulars

Completion and Flow Test of No. 1
Well Expected by YE 2011

No. 2 Well Completion Expected to
Commence in 2Q 2012 with Flow
Test to Follow

Both Wells Could Produce
Immediately Following Successful
Flow Tests

25,000 PSI BOP

Design of Production Facility

Davy Jones

No. 1 Wellhead
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|DAVY JONES 2

SATELLITE

SM234B

DAVY JONES 1

CENTRAL PROCESS FACILITY

SM230A

SUBSEA TIE-IN

TGP 16"

PIPELINE

SM235

8" PIPELINE (2.6 MILES)

16" PIPELINE

(1.4 MILES)

Davy Jones Field Development

14

Initial capacity: 150 MMcf/d

Expandable to: 275 MMcf/d Quickly

Production Facility Capacity
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|Early Stage Topsides Fabrication

Davy Jones Jacket Assembly

15
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|Satellite Main Deck Fabrication

16

Early Stage Topsides Fabrication
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|17

Lafitte

Ultra-Deep Exploration Prospect

Located in 140 Feet of Water

MMR WI: 72.0%

MMR NRI: 58.3%

Spud Date: October 3, 2010

Drilling Below 24,100'

Targeting Miocene Objectives
and Possibly Oligocene (Frio)
Below the Salt Weld

PTD: 29,950'


Eugene Island Blocks 222/223/244
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|18

Lafitte Cross Section

Disturbed Zone
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|19

Lafitte/Barataria/Captain Blood

Cross Section

Presence of Sands at Lafitte, if Confirmed, Would Enhance the Prospectivity
of Barataria and Captain Blood, as They are All One Complex.
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|20

Summary of Ultra-Deep

Geologic Findings to Date
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|Other Ultra-Deep Prospects with

Similar Characteristics to Blackbeard

Velocity Anomaly Seen at Blackbeard East

May be Visible at Other Nearby Prospects

21

West

East

Velocity Anomalies

Below Salt Weld

Salt

Weld
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|22

Resource Potential Identified

to Date From Drilling Results

         Gross

         Resource   MMR

Prospect   Sand Age   Potential   Share

   Blackbeard West   Miocene   2.4    1.3

      Oligocene   2.0   1.1

   Blackbeard East   Miocene   0.8    0.4

      Frio    0.5    0.3

   Davy Jones #1 & #2   Wilcox    4.4    2.1

      Tuscaloosa   1.6    0.8

      Lower Cretaceous   0.7    0.3

   Barbosa   Miocene     2.0     1.2

   TOTAL       14.4    7.5

A portion of this section on this  prospect has not yet been drilled. 900 Bcfe of resource potential based on cross correlation of velocity anomaly seen at
Blackbeard East.

~1 Tcfe of resource potential based on cross correlation to Blackbeard East that has not yet been drilled at Blackbeard West.

Prospect has not yet been drilled. Resource potential based on cross correlation of velocity anomaly seen at Blackbeard East.

NOTE: We use certain phrases and terms in this presentation, such as "gross and net unrisked potential"  and "resource potential," which the SEC's guidelines

           prohibit us from including in filings with the SEC. See Cautionary Statement.

(Tcfe)

(Tcfe)

(1)

(2)

(3)
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|Ultra-Deep Economic Model

Value of Each 2 Tcfe Net (~4 Tcfe Gross)*

23

Price Case

Pre-tax PV-10 Value (Net)

($ in billions)

F&D Cost:      $1.50/Mcfe*

Breakeven Price:
   ~$2.50/Mcf*
*

For 15% IRR

____________________

  * Assumes each well costs $200 mm to drill/complete and 200 Bcfe EUR per well.  Well cost could differ depending upon depths of targets, casing programs and other factors. First production

     per well commences 18 months following spud date at initial production rate of 70 Mmcfe/d.

NOTE: These are model results presented for illustrative purposes only.  We use certain phrases and terms in this presentation, such as "gross and net unrisked potential"  and "resource

           potential" which the SEC's guidelines prohibit us from including in filings with the SEC. See Cautionary Statement.

PV Value in Ground        $0.91/Mcf            $1.43/Mcf           $1.94/Mcf            $2.46/Mcf           $2.98/Mcf
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|24

Conclusion

Substantial Value in Data Gained to Date

Multiple Near-term Catalysts Could Enhance Value

Drilling Results

Flow Testing

Opportunities to Unlock Additional Value from
Acreage/Prospect Inventory
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