Mines Management Announces Resource Estimate and Upgrade of Mineralization.

SPOKANE, Wash. -- Mines Management, Inc. (AMEX:MGN)(TSX:MGT) is pleased to announce it has completed an updated technical review of the mineral resource at the Montanore Silver-Copper Project. An independent estimate of the mineral resource, completed by Mine Development Associates ("MDA") in Reno, Nevada, was found to be consistent with the mineral content announced by previous operators of the project.

The Company's Vice President of Operations, Mr. Eric Klepfer, stated, "We are very pleased with the work as its conclusions are consistent with the analyses completed by U.S. Borax and Noranda Minerals Inc., both former owners of the project. Based on the independent work completed, we plan to further evaluate the deposit toward optimizing the mine plan. This information is critical as we consider development of an underground drilling program. Computer modeling will assist in establishing drill targets to validate and enhance the current drill data used for this assessment. Along with continued progress on permitting, developing the underground drilling program will be the next important step toward evaluating this world class silver/copper deposit for production and identifying potential extensions of mineralization."

Mr. Klepfer added, "Through the independent work of MDA, we are able to upgrade a significant portion of the deposit into the 'Measured Resource' and 'Indicated Resource' categories in accordance with Canadian standards. With a preliminary daily mine production design of 12,500 short tons per day (4.5 million short tons per year), this estimate provides a significant resource base with a potentially long mine life, a real positive for the project."

The independent review was conducted by MDA in Reno, Nevada, and overseen by Steve Ristorcelli, R.P. Geo., C.P.G. and David C. Fitch, C.P.G., both of whom are Qualified Persons under Canadian National Instrument 43-101.

MONTANORE PROJECT
              Mineralized Material Estimate In Accordance
                                 With
                     U.S. S.E.C. Industry Guide 7

                        Silver
                        Grade             Cutoff Grade     True
                       (Ounces   Copper  (Silver Ounces  Thickness
              Tons     per ton)  Grade     per ton)       (feet)
           ----------   -----    ------     -------       -------
Mineralized
 Material  81,506,000   2.04      0.75%       1.0            35

In accordance with Canadian National Instrument 43-101, the Company has filed on SEDAR an October 14, 2005 technical report by MDA titled "Technical Report on the copper and silver Resource, Montanore Project, Lincoln and Sanders Counties, Montana", which reports the resources as follows:

Cautionary Note to US Investors concerning estimates of Measured and Indicated Mineral Resources

This section uses the terms "measured mineral resources" and "indicated mineral resources". We advise US investors that while those terms are recognized and required by Canadian regulations, the US Securities and Exchange Commission does not recognize them, and describes the equivalent as "Mineralized Material". US Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into mineral reserves.

Cautionary Note to US Investors concerning estimates of Inferred Mineral Resources

This section uses the term "inferred mineral resources." We advise US investors that while this term is recognized and required by Canadian regulations, the US Securities and Exchange Commission does not recognize it. "Inferred mineral resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. In accordance with Canadian rules, estimates of inferred mineral resources cannot form the basis of feasibility or other economic studies. US investors are cautioned not to assume that part or all of the inferred mineral resource exists, or is economically or legally mineable.

MONTANORE PROJECT
                    Resource Estimate In Accordance
                                 With
                  Canadian National Instrument 43-101

                        Silver
                        Grade               Cutoff         True
                       (Ounces   Copper  (Silver Ounces  Thickness
              Tons     per ton)  Grade     per ton)       (feet)
           ----------  -----     ------     -------       -------
Measured    4,026,000   1.85     0.74%        1.0           39
Indicated  77,480,000   2.05     0.75%        1.0           34
Inferred   35,080,000   1.85     0.71%        1.0           32

With these resources, the deposit remains open to the northwest within the company's property holdings, providing opportunity for growth.

The company continues to conduct engineering optimization and trade-off studies for the mine plan, and activities toward advancement of the re-permitting process.

Mines Management, Inc. is a U.S.-based mineral company focused on the acquisition and exploration of silver dominant mineral deposits. 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 news release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements are inherently uncertain and involve risks and uncertainties that could cause actual results to differ materially. Such statements include comments regarding the establishment and estimates of mineralized material and non-reserve mineral resources. Factors that could cause these estimates to differ materially include variations in ore grade and ore type; variations in relative amounts and types of ores; failure to receive government approvals; technical, permitting, mining or processing issues, and fluctuations in silver or copper prices. There can be no assurance that future developments affecting the Company will be those anticipated by management. Please refer to the discussion of these and other factors in our Form 10-K for 2004. The forecasts contained in this press release constitute management's current estimates, as of the date of this press release, with respect to the matters covered thereby. We expect that these estimates will change as new information is received and that actual results will vary from these estimates, possibly by material amounts. While we may elect to update these estimates at any time, we do not undertake to update any estimate at any particular time or in response to any particular event. Investors and others should not assume that any forecasts in this press release represent management's estimate as of any date other than the date of this press release. Further information about Mines Management, Inc. can be reviewed on the website for the Securities and Exchange Commission at www.sec.gov or on the company's website at www.minesmanagement.com. The company is also subject to Section 501 of the TSX Company Manual, and files reports on SEDAR, available at www.sedar.com.