5 million shares and ofthe issuance of 16

McMoRan hadno borrowings under its $400 million revolving credit facility and $93.5 millionof cash available on December 31, 2008. Following is a summary of open swap and put positions at December 31, 2008: Natural Gas Positions (million MMbtu)Open Swap Positions(1) Put Options(2) Annual Average Annual AverageTotal VolumesSwap PriceVolumesFloorVolumes 20097.3$ 8.973.2$ 6.00 10.520102.6$ 8.631.2$ 6.00 3.8Oil Positions (thousand bbls)Open Swap Positions(1) Put Options(2) Annual Average Annual AverageTotal VolumesSwap PriceVolumesFloorVolumes 2009322$ 71.82 125$ 50.00447 2010118$ 70.89 50 $ 50.00168(1) Covering periods January-June and November-December (2) Covering periods July -October These derivative contracts have not been designated as hedges for accountingpurposes. Accordingly, these contracts are subject to mark-to-market fair valueadjustments and unrealized gains and losses are recognized in our operatingresults. McMoRans fourth-quarter 2008 results included a realized cash gain of$8.7 million and an unrealized gain of $43.2 million for mark-to-marketaccounting adjustments associated with open derivative contracts based onchanges in their respective fair market values through December 31, 2008.McMoRans derivative contracts fair value after mark-to-market adjustments was$37.5 million at December 31, 2008 McMoRan Exploration Co. is an independent public company engaged in theexploration, development and production of oil and natural gas offshore in theGulf of Mexico and onshore in the Gulf Coast area. Additionalinformation about McMoRan and the MPEH project is available on its internetwebsite "" and at "". - CAUTIONARY STATEMENT: This press release contains certain forward-lookingstatements regarding various oil and gas discoveries, oil and gas exploration,development and production activities, anticipated and potential production andflow rates; anticipated revenues; the economic potential of properties;estimated exploration and development costs; and the potential Main Pass EnergyHubTM Project.Accuracy of these forward-looking statements depends onassumptions about events that change over time and is thus susceptible toperiodic change based on actual experience and new developments.McMoRan cautionsreaders that it assumes no obligation to update or publicly release anyrevisions to the forward-looking statements in this press release and, except tothe extent required by applicable law, does not intend to update or otherwiserevise these statements more frequently than quarterly.Important factors thatmight cause future results to differ from these forward-looking statementsinclude: adverse conditions such as high temperature and pressure that couldlead to mechanical failures or increased costs; variations in the market pricesof oil and natural gas; drilling results; unanticipated fluctuations in flowrates of producing wells; oil and natural gas reserves expectations; the abilityto satisfy future cash obligations and environmental costs; as well as othergeneral exploration and development risks and hazards.These and other factorsare more fully described in McMoRans 2007 Annual Report on Form 10-K on filewith the Securities and Exchange Commission (SEC).The SEC permits oil and gas companies in their filings with the SEC to discloseonly proved reserves that a company has demonstrated by actual production orconclusive formation tests to be economically and legally producible underexisting economic and operating conditions.

We use certain phrases and terms,such as "reserve potential" and "exploration potential," which the SEC'sguidelines strictly prohibit us from including in filings with the SEC. We urgeyou to consider closely the disclosure of proved reserves included in McMoRan'sAnnual Report on Form 10-K for the year ended December 31, 2007.A copy of this release is available on our web site at call with securities analysts about the fourth-quarter 2008 resultsis scheduled for today at 10:00 AM Eastern Time.The conference call will bebroadcast on the Internet.Interested parties may listen to the conference calllive by accessing the call on "".A replay of the call will beavailable through Friday, February 13, 2009. Selected amounts for the three months and year ended December 31, 2008 and2007 associated with the properties acquired in August 2007 follows (inthousands): Three Months Ended Year EndedDecember 31, December 31,20082007 20082007Revenues$65,412$198,132$746,445 $295,413 Production and delivery costs46,777 36,522164,65057,099Depletion, depreciation and amortization 227,9791 111,884 636,1121 170,0121. Includes impairment charges totaling $177.5 million and $207.5 million forthe three months and year ended December 31, 2008, respectively. Amounts for theyear ended December 31, 2008 also include $124.4 million to reflect higherestimates and accelerated timing of future abandonment costs (see Note c below).b.

Includes hurricane assessment and repair charges totaling $16.8 million and$23.1 million in the three months and year ended December 31, 2008,respectively c. Fourth quarter 2008 includes impairment charges totaling $291.8 million,including $246.9 million for proved oil and gas properties and $44.9 million forwells that had not been fully evaluated. Amounts for the year ended December 31,2008 also include additional charges totaling $165.2 million, including $40.8million of impairment charges (of which $21.9 million related to propertiessignificantly damaged during Hurricane Ike) as well as charges totaling $124.4million to reflect higher estimates and accelerated timing of future abandonmentcosts associated with hurricane damaged structures and wells d. Total stock-based compensation follows (in thousands):Three Months EndedYear EndedDecember 31,December 31,2008 2007 20082007 General and administrative expenses$2,338$1,106$14,818$6,334Exploration expenses2,178 1,017 14,376 6,296Main Pass Energy Hub start-up costs 161 791,029477Total stock-based compensation cost$4,677$2,202$30,223$13,107e.

Internal Revenue Code provisions limit theapplication of alternative minimum tax net operating losses to ninety percent ofdefined alternative minimum taxable income. Tax regulations imposelimitations on the utilization of NOL carry forwards when a defined level ofchange in the stock ownership of certain shareholders is exceeded, includingownership changes resulting from conversion of convertible debt into commonstock. No such change in stock ownership was exceeded or was assessed to beprobable of occurring at December 31, 2008 g. Amount includes applicable effect on both periods of the exercise of stockwarrants in December 2007 and June 2008 for a total of 2.5 million shares and ofthe issuance of 16.2 million shares of common stock associated with theconversion of a portion of McMoRans convertible senior notes and mandatoryconvertible preferred stock during the year ended December 31, 2008.Additionally, includes the full period impact of the issuance of 6.2 millionshares of common stock associated with conversion of McMoRans 5 convertiblepreferred stock in June 2007 and the 16.9 million shares of common stock sold inNovember 2007 equity offering. McMoRan EXPLORATION CO.OPERATING DATA (Unaudited) Three Months EndedYear EndedDecember 31,December 31,2008a 2007a 2008a 2007aSales volumes:Gas (thousand cubic feet, or Mcf)10,249,40019,592,20059,886,90038,994,000 Oil (barrels)607,500 1,056,600 3,635,200 2,380,500Plant products (per Mcf equivalent) b1,045,100 1,152,500 8,004,400 2,153,300Average realizations: Gas (per Mcf)$ 6.77$ 7.27$ 9.96$ 7.01 Oil (per barrel) 53.84 88.77 104.0076.55 a.