Positive Preliminary Economic Assessment Completed for the Montanore Silver-Copper Project

Mines Management, Inc. (NYSE-Amex:MGN) (TSX:MGT) is pleased to announce
the completion of a Preliminary Economic Assessment ('PEA?) for the
Company′s wholly owned Montanore Silver-Copper Project located in the
United States. Results of the PEA illustrate that the economics of the
project would be robust in today's cost and metals price environment and
represents a solid economic foundation upon which to build. An NI
43-101-compliant technical report will be filed on SEDAR within 45 days.

A mine plan developed by Mines Management, Inc. ('MMI?) was audited by
Mine and Quarry Engineering Services, Inc. ('MQes?) of San Mateo,
California. Cost estimates were developed by MQes. The mine plan is
based on a Measured and Indicated Mineral Resource of 81.5 million short
tons of material grading 2.04 ounces per short ton ('opt?) silver and
0.75% copper, and an Inferred Mineral Resource of 35.0 million short
tons grading 1.85 opt silver and 0.71% copper at a cutoff grade of 1.0
opt silver, previously reported in an NI 43-101 Technical Report
(October 2005) prepared by Mine Development Associates ('MDA?) of Reno,
Nevada. Mines Management′s estimate of mineralized material reported
pursuant to U.S. Securities and Exchange Commission rules in its annual
report on Form 10-K for the year ended December 31, 2009, remain
unchanged.

The PEA indicates a financially robust underground mine utilizing
conventional grinding and flotation processing techniques at a nominal
throughput of 12,500 short tons per day ('st/d?). At a 5% discount rate,
a silver price of US$15.00 per ounce ('oz?) and a copper price of
US$3.10 per pound ('lb?), the project′s pre-tax Net Present Value
('NPV?) is indicated to be US$485 million with an internal rate of
return ('IRR?) of 17.4% on an unleveraged 100% equity basis.

Using metals prices as of November 17, 2010, of US$25.65/oz. silver and
US$3.72/lb. copper, the project indicated a pre-tax NPV of US$1.323
Billion and IRR of 32.3%, at a 5% discount rate.

Commenting on the PEA, Company President and Chief Executive Officer
Glenn Dobbs said, 'This PEA is the culmination of analysis and
engineering to optimize the mine plan. It indicates the Montanore mine
plan may be quite profitable in today′s commodity environment and could
operate at metals prices significantly below current levels. The
favorable economics indicated in the PEA at this early stage of
development underscore the strong case for advancement through the final
steps of the permitting process and completion of the subsequent
underground drilling and evaluation program for which we have completed
surface construction and initiated underground preparations.?

All dollar amounts in this release are stated in U.S. currency, unless
otherwise stated. The disclosure set forth below is derived from the PEA
unless otherwise expressly noted. Average estimates are assumed over the
15-year life of mine ('LOM?) unless otherwise stated.

PEA HIGHLIGHTS

Note: This PEA is based on measured, indicated and inferred mineral
resources that are considered too speculative geologically to have the
economic considerations applied to them that would enable them to be
categorized as mineral reserves at this time. The cost estimates used in
the preparation of a preliminary assessment are very preliminary and may
increase significantly for actual construction and operations, and there
is no certainty that the preliminary assessment and economics set forth
in the PEA will be realized. Mineral resources that are not mineral
reserves do not have demonstrated economic viability.Direct
Onsite Operating Costs include mining, processing, and G&A costs.

PROJECT DESCRIPTION

The Montanore Silver-Copper Project is 100% controlled by Mines
Management, Inc., subject to a $0.20-per-ton production royalty. The
Montanore deposit underlies portions of Lincoln and Sanders Counties in
northwestern Montana. The Company controls its mineral rights for the
deposit by virtue of extralateral rights projecting from patented apex
claims.

The mineralized zones crop out at the surface and extend down dip at
least 12,000 ft. to the north-northwest. The mineralization is open
ended in the down-dip direction. Mineralization occurs in two
sub-parallel horizons separated by an unmineralized zone. The average
dip is just over 15 degrees. The deposit is controlled on one side to
the southwest by a fault. The width of the main horizon in plan view is
controlled by property boundaries to a maximum of 2,000 ft. The average
thickness for each of the two horizons is 35 ft., depending upon cutoff.

During mining, the deposit would be accessed through three declines,
each extending approximately 14,000 to 17,000 feet from the east, with
processing facilities at the surface.

The project is being advanced under permits approved by the state of
Montana in 1993. Surface facilities have been constructed in preparation
for an underground evaluation and drilling program that will support a
feasibility study. The project is currently undergoing a NEPA process,
following which the Company plans an underground evaluation program to
support a feasibility study.

MINING PLAN

The PEA is based on an underground mining operation, utilizing
conventional grinding and flotation processes. The deposit would be bulk
mined 350 days per year and utilize an inclined room and pillar mining
method producing at a nominal rate of 12,500 short tons per operating
day, although the mine is being permitted for a throughput of up to
20,000 short tons per day.

Over the 15-year mine life, an estimated 59 million short tons of
process feed would be treated at average grades of 1.88 ounces silver
per ton and 0.72% copper, yielding a total of 96 million ounces of
silver and 767 million pounds of copper. Above average feed grades of
2.26 opt silver and 0.84% copper would be mined in the first four years.

Under the current mine plan, forty foot wide topslices would be mined on
strike below the hanging wall contact. Connection drifts between
adjacent top cuts would be mined following the hanging wall contact at a
gradient of 15% forming obliquely angled permanent stope pillars.
Mineralization below the topslice would be mined by a longhole bench.
Based on rock mechanics study recommendation, the Company plans that a
minimum interbed thickness of 50 feet will be maintained between the
mining zones.

Mining at Montanore is planned to be highly mechanized through the use
of large high-tech mining equipment including modern load-haul-dump
units ('LHD?) and trucks, and computer-controlled drilling jumbos.
Material flow would consist of broken ground being hauled from the faces
by LHD and truck to grizzlies centrally located in each mining panel.
The material would discharge from the rock pass, via an apron feeder,
onto the pre-crusher conveyor system to the crusher. Primary crushing
would occur underground. The process feed is then transported via
conveyor to the surface for grinding and flotation.

The deposit is open down dip to the northwest. Diamond drilling in the
northern area of the deposit has suggested a third mineralized bed might
exist. Insufficient data was available to include this mineralization in
resources, however there is potential for significant expansion of the
resource.

METALLURGY AND PROCESSING

The process flowsheet selected for investigation at the Montanore
project uses conventional grinding and flotation techniques and is
broadly similar to that used at copper projects elsewhere. Process
development for the project has concentrated on initial validation of a
basic flow sheet involving crushing, SAG and ball mill grinding, bulk
sulfide flotation, concentrate regrinding, followed by three cleaner
stages. Results have been encouraging, with no fatal flaws encountered
that would require a fundamental change in the process.

INFRASTRUCTURE

Major infrastructure for the project will include a 230kV electrical
transmission line approximately 17 miles in length, access road and
bridge improvements and water treatment facilities, among other items.

CAPITAL COSTS

Capital costs are based on run of mine ore delivered to the underground
feeders, primary crushing, coarse feed conveying, process plant and
ancillary facilities as defined in the equipment list contained in the
2006 preliminary capital and operating cost study.

* Other capital project costs have been included for access roads and
bridges, a temporary 34.5kV power line, tailing, 230kV power line, mine
development, equipment and infrastructure, as well as owners
environmental and working capital.

The initial capital cost for the Montanore project to treat 12,500 st/d
of material is estimated at US$552.3 million (+/-35% accuracy). Ongoing
and replacement capital costs and closure capital are estimated to be an
additional US$217.9 million over the life of mine. Costs are expressed
in 2^nd quarter, 2010 U.S. dollars.

OPERATING COSTS

The following life-of-mine costs are expected for the operating phase of
the project:

SENSITIVITY ANALYSIS

The following sensitivity table demonstrates that the project has robust
economics across a range of silver and copper price scenarios.

NEXT STEPS/RECOMMENDATIONS

• Permitting: Continue with completion of permitting process.
  Remaining steps include completion of Supplemental Draft Environmental
  Impact Study ('EIS?), Final EIS, and Record of Decision.
  
• Evaluation drilling program: Complete development drifting and
  evaluation program, including 50,000 feet of diamond core drilling.
  The program would confirm the resource, geological structure and
  deposit geometry in the areas of the planned infrastructure and first
  mining panels. It would also furnish sample material for metallurgical
  testwork, geotechnical and geometallurgical modeling. This would
  provide information needed to advance the engineering development of
  the project.
  
• Feasibility study: Data from evaluation program will support
  completion of final feasibility study.
  

PREPARATION OF PEA AND NI 43-101 TECHNICAL REPORT

The PEA has been prepared with audit and cost estimation by MQES, and
input from Hatch Engineering, MMI, MDA, McIntosh Engineering, Klepfer
Mining Services, among others.

A Technical Report published in conformance with National Instrument
43-101 will be filed on SEDAR within 45 days of this press release and
will include a summary of the PEA.

QUALIFIED PERSONS

The PEA was prepared under the supervision of Mr. Chris Kaye, and Mr.
Geoffrey Challiner, each of whom are 'Qualified Persons,? as such term
is defined in National Instrument 43-101, and each have read and
confirmed that this news release fairly and accurately reflects the
technical contents of the PEA report. Mr. Steve Ristorcelli, with Mine
Development Associates ('MDA?), is a 'Qualified Person,? as such term is
defined in National Instrument 43-101, and has reviewed the information
with respect to the reported silver and copper resources contained in
this release.

BACKGROUND

The Montanore deposit was discovered in 1983 by U.S. Borax & Chemical,
which conducted approximately 70,000 feet of diamond core drilling.
Mines Management′s mineral claims, which were leased to the operator,
overlapped a portion of the deposit. In 1988, title to the deposit was
sold to a consortium led by Noranda Minerals of Canada. Noranda
conducted numerous activities including completion of project permitting
by 1993, 14,000 feet of development of an evaluation adit, compilation
of surface claims and patenting of mineral claims, among other things.
In 2002, Noranda withdrew from the project due to low metals prices at
the time, and quitclaimed title to the deposit to Mines Management in
accordance with the lease agreement. In 2006, Mines Management acquired
Noranda′s U.S. operating companies, along with title to patented lands
including the portal site to the adit and project permits, and initiated
excavation of the portal and reconstruction of site infrastructure in
preparation for resuming the evaluation drilling program. In 2005, Mines
Management initiated the NEPA process, and the Company is currently
working toward completion of supplemental draft and final environmental
impact studies.

Mines Management, Inc. is a U.S.-based mineral exploration company
focused on advancement of the Montanore Silver-Copper Project located in
northwestern Montana. The Montanore project is a large silver-copper
project currently undergoing project permitting and engineering studies,
and represents a foundation on which the Company intends to become a
significant precious and base metals production company. The Company has
assembled a team which is highly experienced in mine development,
mineral exploration, and financing. Further information on Mines
Management and its properties is available on the Company′s website at www.minesmanagement.com,
in its 10-K Annual Report dated December 31, 2009, and other
documentation generally available on the Securities and Exchange
Commission′s website (www.sec.gov)
and on the Canadian website SEDAR (www.sedar.com).
Or you can contact the company directly at the location described below.

Cautionary Note to U.S. Investors concerning
estimates of Measured, Indicated and Inferred Mineral Resources

This section uses the terms 'Measured Mineral Resources,? 'Indicated
Mineral Resources? and 'Inferred Mineral Resources.? We advise U.S.
investors that while those terms are recognized and required by NI
43-101, the Securities and Exchange Commission does not recognize them.
U.S. 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. Inferred Mineral Resources have a greater amount of
uncertainty as to their existence and as to their economic and legal
feasibility. In accordance with Canadian rules, estimates of Inferred
Mineral Resources cannot form the basis of feasibility or other economic
studies. U.S. investors are cautioned not to assume that part or all of
the Inferred Mineral Resources exists, or is economically or legally
mineable. Disclosure of 'contained ounces? in a Mineral Resource is
permitted under Canadian regulations, however the SEC normally only
permits issuers to report mineralization that does not constitute
"reserves′ by SEC standards as in place tonnage and grade without
reference to unit measures. Accordingly, the information contained in
this press release may not be comparable to similar information made
public by U.S. companies that are not subject to NI 43-101.

FORWARD-LOOKING STATEMENTS

Some information contained in 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
the results of the Preliminary Economic Assessment including estimated
capital and operating costs, throughput and process rates, recoveries,
production, NPV and IRR calculations, mining and processing methods, and
plans, and further exploration and evaluation of the Montanore Project
including progress and expectations regarding environmental and
permitting requirements and the process and timing thereof. The use of
any of the words 'anticipate,' 'estimate,' 'expect,' 'may,' 'project,'
'should,' 'would,' '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 in documents filed by Mines Management, Inc., with the U.S.
Securities and Exchange Commission and with other regulatory
authorities, including the availability, terms, conditions and timing of
required governmental permits and approvals, the very preliminary cost
estimates used in the preparation of the PEA which may increase
significantly for actual construction and operations, changes in the
mine plan, processing or estimates of mineral resources on which the PEA
was based, changes in worldwide economic and political events affecting
the supply of and demand for silver and copper, and the availability of
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 process problems, uncertainty regarding future changes in
applicable law or implementation of existing law, the availability of
experienced employees, and the factors discussed under 'Risk Factors' in
Mines Management, Inc.'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