Mines Management Submits Plan to Reopen Montanore Tunnel; Shelf Registration Becomes Effective.

SPOKANE, Wash. -- Mines Management, Inc. (AMEX:MGN) (TSX:MGT) is pleased to announced it has submitted a plan for approval to Montana's Department of Environmental Quality ("DEQ") for reopening the Libby adit at the Montanore Silver-Copper Project in northwestern Montana. The Company also announces the effectiveness, as of June 27, 2006, of its universal shelf registration statement on Form S-3, for up to $65 million of securities.

The previously announced acquisition on May 31, 2006, of the Hard Rock Operating Permit and water discharge permit for the Libby adit will enable the Company to commence an underground evaluation program as part of its ongoing engineering and feasibility activities.

Mr. Eric Klepfer, the Company's Vice President of Operations, stated, "We are excited about the events over the last couple of weeks. We believe that our meeting with the agencies was very positive, and we are encouraged that we could begin the process of reopening the Libby adit this year."

The plan, which was submitted on June 13th, envisions a three-step program to reopen the portal, to initiate dewatering, removal of the plug and rehabilitation, and to undertake a subsurface drilling and evaluation program.

Under the proposed evaluation program, the adit would be extended by approximately 3,000 feet in order to initiate drilling. Additional activities would include technical studies and collection of supporting data for hydrological studies, geotechnical analysis and rock mechanics, updates to the computer block model, and a metallurgical testing program as part of the detailed engineering for the project. The program would entail approximately 20,000 feet of diamond core drilling.

The Libby adit was originally constructed and partially completed between 1988 and 1991 by the former operator of the Montanore Project. The adit was advanced to a length of approximately 14,000 feet prior to cessation of activities.

Glenn M. Dobbs, the Company's President and Chief Executive Officer, stated, "We look forward to recommencing underground activities at the Montanore Project. If approved, the underground evaluation program should enable us to better analyze thicknesses of the mineable zones and compare alternative mining methods. Confirmation through the underground evaluation program could have an impact on both the mineable resource and operating costs, the potential benefits of which would be reflected in our final feasibility study."

Additionally, the Company has received notification that its universal shelf registration statement in Form S-3 filed with the U.S. Securities and Exchange Commission became effective on June 27, 2006. The registration statement permits the Company to offer from time to time, up to $65 million of its common shares, share purchase warrants, convertible debt securities, or any combination of these securities, in one or more offerings over the next three years.

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 Sanders and Lincoln Counties, Montana.

This press release does not constitute an offer to sell or a solicitation to buy securities, and 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 and approval of the applications and plans related to the Montanore permitting process, the elements comprising the underground evaluation program, anticipated commencement of underground activities at the Montanore Project, and the impact of the results of the evaluation program on mineable resources and operating costs. 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 studies, 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, the ability to raise capital in the financial markets, and other factors discussed in the Company's periodic filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2005.

Further information about Mines Management, Inc. can be reviewed on the website for the Securities and Exchange Commission at www.sec.gov, the website for Canadian securities reporting at www.sedar.com, or on the Company's website at www.minesmanagement.com.