Cyprus Amax and ASARCO Amend Merger Agreement

DENVER (PROTEXT) - Cyprus Amax Minerals Company (NYSE: CYM)today announced that it and ASARCO Incorporated had amended theirMerger Agreement to permit each other to explore alternatives, inaddition to the transaction proposed by Phelps Dodge, to theASARCO/Cyprus Amax merger. Cyprus Amax stated, however, that itcould give no assurance that any transaction would result fromthese efforts. Cyprus Amax also said that it and ASARCO have agreed that eachis free to act independently of the other until 9:00 AM (New YorkCity time) on Tuesday, October 5, 1999. During that period eithercompany can unilaterally terminate the Merger Agreement uponpayment of a termination fee which is based on the marketcapitalization of the company terminating the Merger Agreement.The termination fee, if paid by Cyprus Amax upon the terminationof the Merger Agreement by Cyprus Amax, would be $45 million. Thetermination fee, if paid by ASARCO upon the termination of theMerger Agreement by ASARCO, would be $40 million. Cyprus Amax andASARCO agreed that if the Merger Agreement is not terminatedprior to Tuesday morning the original terms of the MergerAgreement will be reinstated in their entirety. Cyprus Amax also said that it and ASARCO had agreed topostpone their shareholder meetings currently scheduled forSeptember 30, 1999 until October 7, 1999. Cyprus Amax Minerals Company, headquartered in Englewood,Colorado, is a leading producer of copper, the world's largestproducer of molybdenum, and holds a 30% interest in Kinross GoldCorporation. Cyprus Amax is exploring for minerals worldwide. Actual results may vary materially from any forward-lookingstatements the Company makes. Refer to the Cautionary Statementand Risk Factors contained in the Company's 1998 Form 10-K. To obtain a faxed copy of this or any Cyprus Amax newsrelease, call 1-800-758-5804, ext. 224250. News releases can alsobe accessed via the Internet at http://www.prnewswire.com or atthe Cyprus Amax web site, http://www.cyprusamax.com. otsOriginal Text Service: Cyprus Amax Minerals Company Internet:http://www.newsaktuell.de Contact: Gerald J. Malys, Senior VicePresident & Chief Financial Officer, 303-643-5060, or JohnTaraba, Vice President & Controller, 303-643-5244, both of CyprusAmax Minerals Company Company News On-Call:http://www.prnewswire.com/comp/224250.html or fax, 800-758-5804,ext. 224250 Web site: http://www.cyprusamax.com

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