Mines Management Announces First Quarter Results

Mines Management, Inc. (AMEX:MGN - News; TSX:MGT - News) is pleased to announce results for the first quarter of 2007. The Company reported a net loss for the quarter ended March 31, 2007 of $1.8 million, or $0.14 per share compared to $1.1 million loss, or $0.08 per share for the quarter ended March 31, 2006. The $0.7 million increase in net loss was attributed to increased expenditures for the first quarter 2007 compared to first quarter 2006 resulting from increased activity for the Montanore Project including permitting, technical studies, and preparation for the Libby adit rehabilitation and delineation drilling program, and corporate legal, accounting, and administrative expenses relating to the public offering completed on April 20, 2007.

Overview

In the first quarter of 2007, the Company:

• Maintained strong cash and investment position with $3.5 million on hand at March 31, 2007.
• Continued adding infrastructure at the Libby adit site.
• Completed a water quality pilot plant test and analysis in the Libby adit.
• Continued work with state and federal agencies to provide technical information in support of the preparation of the Draft Environmental Impact Statement.
• Completed a detailed schedule and budget for the next two years for the Montanore project.

Subsequent to the end of the first quarter, on April 20, 2007, the Company completed a US$30,000,000 public offering at $5.00 per unit in which 6,000,000 units, each comprised of one share of common stock and one half of a warrant to purchase one share of common stock, were sold, resulting in US$28,200,000 net proceeds to the Company after deducting underwriting commissions but before deducting offering expenses. As a result, the Company has sufficient funds on hand for the first three phases of its planned advanced exploration and delineation drilling program that it expects to undertake at the Montanore Project over the next two years. The Montanore Project continues to be the Company's main focus and, in addition to the planned delineation drilling program, the Company is continuing its permitting efforts with federal and state agencies and its optimization review.

The Company has initiated its planned two-year advanced exploration and delineation drilling program at the Montanore Project. We expect to dewater and rehabilitate the Libby adit, and then advance the adit approximately 3,000 feet toward the middle of the deposit. We plan an additional 10,000 feet of development drifting to provide drill access to different portions of the deposit, construction of drill stations, and diamond core drilling of approximately 50 holes totaling approximately 45,000 feet. The objectives of our advanced exploration and delineation program are to:

• Expand the known higher grade intercepts of the Montanore deposit;
• Develop additional information about the deposit;
• Further assess and define the mineralized zone; and
• Provide additional geotechnical, hydrological, and other data.

We expect that results of the drilling program, if successful, would provide data to support the completion of a bankable feasibility study. The net cash expenditures for operating activities for the quarter ending March 31, 2007 was $1.7 million. The Company believes that the recently completed financing, raising $28.2 million, net of commissions but before expenses, provides sufficient working capital for rehabilitation of the Libby adit and commencement of the evaluation drilling program over the next two years. In order to complete the planned program, the Company would need an additional $10 million in external financing.

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