Mines Management Third-Quarter Results.

SPOKANE, Wash. -- Mines Management, Inc. (AMEX:MGN) (TSX:MGT) is pleased to announce financial results and an overview of activities that took place during the quarter ending September 30, 2006.

During the quarter, Mines Management, Inc. ("MMI" or the "Company") completed Phase 1 work authorized by a minor revision to the Hard Rock Operating Permit for the Libby Adit, which was approved July 14, 2006, by the Montana Department of Environmental Quality ("Montana DEQ"). The work involved re-opening the Libby Adit and initiating water treatability analyses. The first 600 feet of the Libby Adit was inspected and found to be in good shape, and water samples were collected and sent for analysis. Preliminary water treatability studies were completed.

By the end of the quarter, significant progress had been made with both the Montana DEQ and the U.S. Forest Service on the second minor revision to the Permit which was submitted in the second quarter of 2006. Approval of the second revision, which was received on November 23, 2006, authorizes work to begin on dewatering and rehabilitation of the Libby Adit advancement to the deposit and execution of the evaluation drilling program.

Summary

In the third quarter of 2006, the Company:

* Completed initial updates to the Montanore Project mining and milling cost studies, incorporating recent changes and updates related to the evaluation project.

* Maintained strong cash and investment position with $6.5 million on hand at September 30, 2006.

* Inspected the first 600 feet of the Libby Adit.

* Collected water samples from the Libby Adit and completed preliminary bench scale testing for water treatment systems.

* Continued work with state and federal agencies to provide technical information for the environmental impact statement process.

* Initiated evaluation of financing alternatives to fund the adit rehabilitation and delineation drilling program for the Montanore Project.

Geology

The Company is advancing structural reinterpretation and mine model development focusing on the various mineralized beds. Three dimensional models of the bedding have been used to re-interpolate the B1 and B mineralized zones. In addition, interpretation of expanded mineralized zone beyond the B1 and B zones was initiated and was integral to the proposed evaluation drilling program submitted with the second minor revision to the Hard Rock Operating Permit.

Financial and Operating Results

Quarter Ended September 30, 2006

The Company reported a net loss for the quarter ended September 30, 2006, of $1.4 million, or $0.11 per share, compared to $1.2 million loss, or $0.11 per share, for the quarter ended September 30, 2005. The $0.2 million increased expenditures for the third quarter 2006 compared to third quarter 2005 were mainly attributable to increased activity for the Montanore Project permitting, technical studies, and preparation for the adit rehabilitation and evaluation drilling program, which included administrative and legal expenses relating to the transfer of the Hard Rock Operating Permit following the acquisition of the Noranda companies in May 2006.

Nine Months Ended September 30, 2006

The net loss for the first three quarters of 2006 was $4.0 million, or $0.31 per share, verses a net loss of $3.4 million, or $0.31 per share, for the same period in 2005. The year-to-date increase through September 30, 2006, versus September 30, 2005, was $0.6 million, again attributable to increased activity at the Montanore Project, partially offset by warrant and option income during the first quarter of 2006.

Liquidity

For the quarter ending September 30, 2006, net cash used for operating activities was $1.4 million, consisting largely of permitting, engineering and site preparation expenses for the Libby Adit rehabilitation and delineation drilling program. The net decrease in cash on hand at the end of the second quarter 2006 was $1.7 million for the third quarter of 2006. Year-to-date cash used in operating activities was $3.7 million, and $0.3 million for investing activities was offset by proceeds from sale of stock from the exercise of warrants and stock options of $1.5 million, resulting in a net decrease in cash of $2.5 million year to date through the third quarter 2006.

The Company anticipates spending approximately $1.5 to $2.0 million from cash and investments on hand for the final quarter in 2006 to finalize permitting, engineering, the preliminary draft EIS, and the reopening of the Libby Creek adit for the Montanore Project. We believe that we have sufficient working capital for the next 18 months of operations at current levels. We will require additional capital to complete the proposed evaluation drilling program.

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 are necessary to gaining 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 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 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 filing with the Securities and Exchange Commission, and at the Company's website at www.minesmanagement.com.