Mines Management Files Technical Report For Montanore Silver-Copper Project

Mines Management, Inc. ('MMI?) (NYSE-Amex:MGN) (TSX:MGT) has filed on
SEDAR a Technical Report entitled 'Technical Report: Preliminary
Economic Assessment, Montanore Project, Montana, USA prepared for Mines
Management Inc.? ('Technical Report?) dated February 3, 2011, in
support of a Preliminary Economic Assessment ('PEA?) for the Company′s
wholly owned Montanore Silver-Copper Project in compliance with Canadian
National Instrument 43-101. ('NI 43-101?). The Technical Report was
prepared  by Mine and Quarry Engineering Services, Inc. of San Mateo,
California ('MQes). MMI previously announced the PEA results set forth
below on December 22, 2010.

A mine plan developed by MMI was audited by MQes. 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 dated October 2005 prepared by Mine
Development Associates ('MDA?) of Reno, Nevada. MDA′s estimate reported
by MMI of estimated 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, remains unchanged.

The PEA indicates the potential for 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.

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

Note: TheTechnical Report 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.
Mineral prices used to calculate silver equivalency were US$15.00 per
ounce of silver and US$3.10 per pound of copper.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 Technical Report 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 a silver and copper deficient zone.
The average dip is just over 15 degrees in the up dip area, increasing
to an average of 24 degrees in the northwestern, down dip area. 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
15,000 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 Technical Report 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 top slice would be mined by a longhole bench.
Based on rock mechanics study recommendations, MMI 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 would then be 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 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 material 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 a final feasibility study.
  

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.

QUALIFIED PERSONS

The Technical Report in support of the PEA was prepared under the
supervision of Mr. Chris Kaye, and Mr. Geoffrey Challiner, each of whom
is an independent '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 Technical Report . Mr. Steve Ristorcelli, with Mine Development
Associates ('MDA?), also an independent Qualified Person, 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, MMI
initiated the NEPA process, and 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 MMI intends to become a significant
precious and base metals production company. MMI has assembled a team
which is highly experienced in mine development, mineral exploration,
and financing. Further information on MMI 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.

Douglas Dobbs, Vice President Corporate
Development & Investor Relations

Phone: 509-838-6050

Fax:
509-838-0486

Email: info@minesmanagement.com

Web:
www.minesmanagement.com