Cyprus Amax Minerals Reaches Definitive Agreement / To Sell Coal Unit to RAG International Mining GmbH DENVER (ots-PRNewswire) - Cyprus Amax Minerals Company (NYSE: CYM) today announced it has reached a definitive agreement to sell its Cyprus Amax Coal subsidiary to RAG International Mining GmbH. The boards of Cyprus Amax and RAG have approved the sale, which is subject to regulatory approvals and other customary conditions, with closing to take place as soon as possible. Cyprus Amax expects to receive total consideration of approximately $1.1 billion, consisting of cash and assumption of debt. The buyer is assuming other long- term obligations and is acquiring related assets. In addition, Cyprus Amax will receive certain production payments from the Willow Creek mine. Because of Cyprus Amax's expected tax position in 1999, tax payments as a result of the transaction are expected to be partially mitigated. The Company does not expect to report any material gain or loss on the transaction. Cyprus Amax Coal is one of the premier U.S. coal businesses with properties in Pennsylvania, the Powder River Basin of Wyoming, Utah, Colorado and Illinois. In 1998, Cyprus Amax Coal had revenue from these properties of over $800 million and shipments of 68 million tons of coal. Cyprus' Australian coal assets are not part of the sale. Salomon Smith Barney served as advisor to Cyprus Amax and Chase Securities Inc. served as advisor to RAG for the transaction. Milton H. Ward, Chairman, President and Chief Executive Officer stated, "We expect to use proceeds from this transaction to reduce debt, fund the existing share buyback program, significantly strengthen our financial position and support growth opportunities in our core mining businesses." Cyprus Amax Minerals Company, headquartered in Englewood, Colorado, is a leading producer of copper and coal, the world's largest producer of molybdenum, and holds a 30% interest in Kinross Gold Corporation. Cyprus Amax is exploring for minerals worldwide. Actual results may vary materially from any forward-looking statement the Company makes. Refer to the Cautionary Statement and Risk Factors contained in the Company's 1998 Form 10-K. To obtain a faxed copy of this or any Cyprus Amax news release, call 1-800-758-5804, ext. 224250. News releases can also be accessed via the Internet at the Cyprus Amax Minerals Company Web Site, ots Original Text Service: Cyprus Amax Minerals Company Internet: Contact: Gerald J. Malys, Senior Vice President & Chief Financial Officer, 303-643-5060, or John Taraba, Vice President & Controller, 303-643-5244, both of Cyprus Amax Minerals Company Company News On-Call: or fax, 800-758-5804, ext. 224250 Web site: e-mail:

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