Mines Management, Inc. (NYSE-Amex:MGN) (TSX:MGT) (the “Company”) is pleased to announce that a Supplemental Draft Environmental Impact Statement (the “SDEIS”) has been completed by the U.S. Forest Service for the Montanore Project.

“Completion of the SDEIS is a major step forward in the final phase of the permitting process,” stated Glenn M. Dobbs, the Company’s President and CEO. “It signals a move toward completion of the process we began in 2005, since which time we have developed extensive documentation demonstrating the benign nature of this underground mining project, and the protections to the environment provided in the plan of operations.

“Using proven processes to mine and process the material, we have designed a mine which would exceed current standards and regulations to protect wildlife, maintain purity and viability of water in the region, and mitigate any other potential or perceived risks to the environment. We are gratified with the work that has been done by the agencies and the EIS contractor who have completed a thorough analysis of the Montanore Project. We are especially appreciative of the overwhelming support the community has provided throughout this process.

“Having been previously fully permitted in 1993, the project has undergone additional exhaustive studies, and it is clear the community in the area of the project would like to see the mine built. If developed, the Montanore Project would provide an estimated 350 direct long term jobs in a community with approximately 20% unemployment, resulting in significant economic growth and an increase in the tax base. With the completion of the SDEIS, we are optimistic that the permitting process is nearing a conclusion, after which the project can move forward.”

The remaining steps of the permitting process include:

• Public review of the SDEIS, and comments
• Biological Consultation with the U.S. Dept. of Fish and Wildlife, concluding with a Biological Opinion (“BO”)
• Final Environmental Impact Study (“FEIS”), followed by a Record of Decision (“ROD”) from the U.S. Forest Service

Development of the Montanore Project would offer many benefits. In addition to the long term, high paying jobs provided in the local community, the metals that would be produced from the project are strategic to the nation at large in supporting domestic production of many products, including:

• Silver is increasingly valuable with respect to:
  • solar energy production,
  • replacing the use of toxic materials, such as lead,
  • its anti-bacterial properties to purify water and reduce the spread of disease.
• Copper is a strategic mineral to the United States, and critical to:
  • expanding green energy, including solar and wind power generation & distribution,
  • electrical distribution in new construction
  • low cost material for electronics, critical to maintaining America’s global competitiveness.

Additional information regarding silver can be viewed at the Company’s website at the following location: http://www.minesmanagement.com/silver-news.php.

Economically, the country benefits as the production of more raw material results in lower material prices, and lower costs for manufacturers and consumers, increasing the country’s competitiveness and contributing to job growth.

If and when the Montanore Project is fully permitted, the Company intends to complete rehabilitation and construction of its 14,000 ft. evaluation adit, followed by an underground drilling program. Data obtained from the drilling program will be used to support detailed engineering and development of a feasibility study.

About Mines Management

Mines Management, Inc. is engaged in the business of acquiring and exploring, and if exploration is successful, developing mineral properties containing precious and base metals. The Company’s primary focus is on the advancement of the Montanore silver-copper project located in northwestern Montana.

Statements Regarding Forward-Looking Information: Some statements contained in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other applicable securities laws. Investors are cautioned that forward-looking statements are inherently uncertain and involve risks and uncertainties that could cause actual results to differ materially, including comments regarding the number of jobs and other benefits provided by the Montanore Project, the timing and conclusion of the permitting process, plans for the Montanore Project following the completion of permitting, including rehabilitation and construction of the adit, the underground drilling program and the use of data from the drilling program. Actual results may differ materially from those presented. Factors that could cause results to differ materially include fluctuations in silver and copper prices. Mines Management, Inc. assumes no obligation to update this information. There can be no assurance that future developments affecting Mines Management, Inc. will be those anticipated by management. Please refer to the discussion of risk factors in the Company’s Form 10-K for the year ended December 31, 2010, as amended, and the Company’s website at: www.minesmanagement.com.