Montanore Project Reaches Another Critical Permitting Milestone

Mines Management, Inc. (NYSE-Amex:MGN)(TSX:MGT) is pleased with the
recent advances made by the government agencies in their selection of
the preferred alternative for the transmission line proposed for the
Montanore Silver-Copper Project.

Mines Management′s President and CEO, Mr. Glenn Dobbs, stated, 'Getting
to this phase on the transmission line is a major and welcome milestone
in the process to re-permit the Montanore project, and reflects the
significant progress we have made this year. We continue to work closely
with the agencies on the remaining facets of the plan as we progress
toward conclusion of the Final Environmental Impact Statement ('EIS?)
and Record of Decision ('ROD?), and anticipate additional progress as we
move further through the final phase of permitting the Montanore.?

As part of the environmental review process, the agencies considered a
variety of alternatives for the location of the transmission line, and,
based partly upon public comment received following review of the Draft
EIS, modified the various alternatives considered for the project.
Following further analysis, the agencies made a determination as to
their preferred alternative for the transmission line that will be
advanced in the remaining environmental review process. This is not a
final decision, but it is a critical step in the continued advancement
of the review process.

The selected alternative for the transmission line minimizes impact to
critical habitat for many species including grizzly bears, bull trout,
and old growth timber, as well as preservation of the visual natural
attributes of the region.

Mines Management, Inc. is a U.S. based mineral company focused on the
acquisition and exploration of precious and base metals mineral
deposits. The Company′s primary focus is on the advancement of the large
Montanore silver-copper project located in northwestern Montana, with a
goal to ultimately become a new mid-tier producer of precious and base
metals. As of September 30, 2010, the Company had 23,100,109 shares of
common stock issued and outstanding.

FORWARD LOOKING STATEMENTS - Some information contained in or
incorporated by reference into this release may contain forward looking
statements as defined in the Private Securities Litigation Reform Act of
1995. These statements include, among other things, comments regarding
further exploration and evaluation of the Montanore Project, including
planned rehabilitation and extension of the Libby adit, drilling
activities, feasibility determinations, engineering studies,
environmental and permitting requirements, process and timing, and
estimates of mineralized material and measured, indicated and inferred
resources, financing needs, the markets for silver and copper, planned
expenditures for the remainder of 2010, sources of financing, potential
completion of a bankable feasibility study, results of the hydrological
model and the effects thereof, and the search for potential exploration
and development opportunity in the mining industry. The use of any of
the words 'anticipate,' 'estimate,' 'expect,' 'may,' 'project,'
'should,' 'believe,' and similar expressions are intended to identify
uncertainties. We believe the expectations reflected in those forward
looking statements are reasonable. However, we cannot assure that the
expectations will prove to be correct. Actual results could differ
materially from those anticipated in these forward looking statements as
a result of the factors set forth below, and other factors set forth and
incorporated by reference elsewhere in documents filed by the Company
with the U.S. Securities and Exchange Commission, and with other
regulatory authorities, including worldwide economic and political
events affecting the supply of and demand for silver and copper, and the
availability and cost of financing for mining projects, volatility in
the market price for silver and copper, financial market conditions and
the availability of financing on acceptable terms or on any terms,
uncertainty regarding whether reserves will be established at Montanore,
uncertainties associated with developing new mines, variations in ore
grade and other characteristics affecting mining, crushing, milling and
smelting and mineral recoveries, geological, technical, permitting,
mining and processing problems, the availability, terms, conditions and
timing of required governmental permits and approvals, uncertainty
regarding future changes in applicable law or implementation of existing
law, the availability of experienced employees, the factors discussed
under 'Risk Factors' in the Company′s Annual Report on Form 10-K for the
period ending December 31, 2009.

Mines Management, Inc.

Vice President Corporate Development &
Investor Relations

Douglas Dobbs, 509-838-6050

Fax:
509-838-0486

info@minesmanagement.com