Mines Management Announces It is Proceeding with Montanore Underground Drill Program.

SPOKANE, Wash. -- Mines Management, Inc. (AMEX:MGN) (TSX:MGT) is pleased to announce it is proceeding with the underground evaluation drilling program at the Montanore Silver-Copper Project in northwestern Montana, for which it recently received approval from the Montana State Department of Environmental Quality ("DEQ").

Background

In May 2006, Mines Management, Inc. ("MMI" or "the Company") acquired existing permits, which, following a two phase approval process, allow the Company to resume underground evaluation drilling activities concluded in the mid-1990's by the project's previous operator, Noranda Minerals Corporation of Canada.

The first of two minor revisions to the operating permit was approved on July 14, 2006. The Company initiated excavation of the Libby Adit during the summer of 2006, gaining access to the 14,000 feet of workings completed by Noranda Minerals Corporation in the early 1990s. The Company undertook water quality testing, assessment of the condition of the adit, and preparation of the site for construction of facilities and necessary infrastructure. Assessment found that the first 600 feet of the adit was in good condition and would require little rehabilitation work. Water quality samples collected also show minimal issues for the dewatering process.

Approval of the second minor revision was received on November 23, 2006, following analysis of water quality and technical aspects of the proposed underground evaluation program. The Company initiated preparatory activities including construction of mine office/dry, shop and other surface facilities necessary for the drilling program, and assessment of future staffing needs.

Overview of Evaluation Program

Activities planned for the program include the following:

* Re-installation of surface facilities, utilities and infrastructure (currently underway)

* De-watering and rehabilitation of the adit

* Development and advancement of the adit by 3,000 feet.

* Drifting of approximately 10,000 feet and establishment of drill stations

* Diamond core drilling of approximately 45,000 feet among approximately 51 holes

With the exception of the first 600 feet, the length of the adit contains water. The Company plans to treat water discharged from the adit using ultra-filtration and possibly chemical pre-treatment to ensure that discharged water, both during the dewatering process as well as development of the adit and drilling program, will meet Montana's stringent water quality standards. Pilot scale tests of the treatment scheme are being scheduled at this time.

As dewatering takes place, the Company plans to rehabilitate the adit, which was originally developed between 1988 and 1991, and install utilities and infrastructure in preparation for advancement.

Once rehabilitation is complete, the Company expects to advance the adit by approximately 3,000 feet, followed by development drifting and establishment of drill stations.

The diamond core drill program is expected to consist of two phases totaling approximately 45,000 feet.

Results of the drill program are expected to provide data to assist in completion of a bankable feasibility study and further optimization of the mine plan.

Additional Opportunity

The Company has undertaken a detailed analysis of the geology and mineralized zones of the deposit to determine if additional mineralization could be incorporated into the mine plan.

Geological analysis, drill-hole assays and logging, and a re-interpolation of the B1 and B zones in the geologic model, have identified an extension of the mineralization outside of the previously defined resource boundary that could potentially be included in the mine plan.

The upcoming evaluation drilling program is designed to provide additional data to test continuity of thicker mineralized zones and higher grade intercepts found in the current drill hole data set, to fully delineate the mineralized zones for the first five years of the preliminary mine plan, and to validate ongoing optimization studies that will be integral to the development of the final feasibility study.

Mines Management, Inc. is a U.S.-based mineral company focused on the exploration and acquisition of precious and base metals mineral deposits. The company's primary focus is on the advancement of the Montanore Silver-Copper Project located in northwestern Montana. The Montanore Project is currently undergoing environmental assessment as part of the development of an Environmental Impact Statement and the NEPA process, which would be necessary to obtain permits to develop and conduct commercial mining activities. An underground evaluation program has been initiated as part of the development of a final, bankable feasibility study.

This press release contains forward-looking statements regarding the Company, within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, including statements regarding the anticipated timing, process and scope of the underground evaluation and drilling activities and the anticipated completion of a bankable feasibility study. These statements are based on assumptions that the Company believes are reasonable but that are subject to uncertainties and business risks. Actual results relating to any and all of these subjects may differ materially from those presented. Factors that could cause results to differ materially include economic and political events affecting supply of and demand for silver and copper, fluctuations in silver and copper prices, negative results of environmental or technical studies, negative results of adit rehabilitation efforts or additional drilling, inability to obtain sufficient financing to complete the planned dewatering, rehabilitation and drilling program, problems or delays in or objections to the permitting process, the proximity of the project to the Cabinet Wilderness Area, failure or delay of third parties to provide services, changes in the attitude of state and local officials toward the Montanore Project and other factors discussed in the Company's periodic filings with the Securities and Exchange Commission, including its annual report on Form 10-K, as amended, for the year ended December 31, 2005. Additional information is available in the Company's 10-Q filings with the Securities and Exchange Commission, and at the Company's website at www.minesmanagement.com.