Mines Management Year-End Earnings Release

Mines Management, Inc. (NYSE Amex: MGN) (TSX: MGT) (the 'Company') is
pleased to announce financial and operating results for the year ended
December 31, 2010.

Overview

Highlights

• 
  On April 4, 2011, the Company completed an underwritten public
  offering of 5,120,000  shares of common stock that yielded net proceeds
  of approximately $15.1  million. The Company intends to use the net
  proceeds for advancement of the permitting process for its Montanore
  Project, the commencement of the Company's planned delineation
  drilling program which will include advancement of the adit,
  establishment of drilling stations and commencement of exploratory
  drilling, and for general corporate purposes, including possible
  acquisition and exploration of new mining properties.
  
• 
  The Company engaged Mine and Quarry Engineering Services,  Inc. of San
  Mateo, California (MQES) to prepare a Technical Report entitled
  'Technical Report: Preliminary Economic Assessment, Montanore Project,
  Montana, USA prepared for Mines Management,  Inc.' dated February  3,
  2011 (PEA), in compliance with guidelines under Canadian National
  Instrument  43-101 ('NI  43-101'). The Company announced the PEA results
  on December  22, 2010.
  
• 
  The U.S. Forest Service (USFS) and the Montana Department of
  Environmental Quality (MDEQ) continued their environmental review, and
  are in the process of formulating responses to comments received from
  the public and from Environmental Protection Agency (EPA) on the Draft
  Environmental Impact Study (EIS) for the Montanore Project.
  
• 
  Permitting Milestones achieved in 2010 included:
  
  
  • 
    Selection by the government agencies of the preferred alternative
    for the transmission line proposed for the Montanore Project,
    announced on October  8, 2010, and
    
  • 
    Completion of a study to monitor the grizzly bear in the Montanore
    Project area, which is located in a portion of the Cabinet/Yaak
    Ecosystem recovery area, announced on August  8, 2010.
    
• 
  The Company continued meetings with federal and state agencies,
  Montana legislators, and local Lincoln County Commissioners, Libby
  City officials, business leaders and community members.
  
• 
  The Company continued its program to reduce expenditures and conserve
  cash pending the completion of permitting.
  
• 
  Cash and investment position remained strong at December  31, 2010.
  

At December  31, 2010, the balance of our cash and unrestricted
certificates of deposit remained strong at over $6.4  million. We also
had $3.7  million in equity securities that were available for sale. Our
net cash expenditures for operating activities for 2010 totaled
$6.7  million. Cash outlays were less than projected due to delays in the
USFS approval of our EIS and the cessation of adit rehabilitation and
dewatering until permits are received. Our cash position was augmented
by the $15.1  million of net proceeds received from the common stock
offering completed in April, 2011.

In 2011, we plan to continue to focus on planning for our exploration
and delineation drilling program at the Montanore Project pending the
final permitting approvals. The completion of the recent financing will
provide sufficient cash to complete the permitting process and initiate
the adit rehabilitation and drill station development. Additional
financing will be required to complete the evaluation drilling program
and a bankable feasibility study. Development activities could be
deferred if the permitting process is delayed or if commodity prices
make the project difficult to finance or increase the cost of such
financing.

Financial and Operating Results

We reported a net loss for the year ended December  31, 2010 of
$10.7  million or $0.46 per share compared to a loss of $9.4  million or
$0.41 per share for the year ended December  31, 2009. The increase of
$1.3  million in net loss between 2010 and 2009 was comprised of a
reduction in project and administrative expenses of $0.8  million and an
increase of $2.1  million in non-cash expenses. The following table
summarizes expenditures by category and year:

Montanore Project Expense includes exploration, fees, filing and
licenses, and technical services, including environmental, engineering
and permitting expense. Montanore Project Expense decreased by
$0.7  million during 2010 compared to 2009 for the following reasons:
(i)  decreased spending related to adit rehabilitation activity by
$1.2  million during 2010 and (ii)  an increase of $0.5  million in
consultant fees paid in 2010 primarily to MQES to conduct the PEA.

Administrative Expense, which includes general overhead and office
expense, legal, accounting, compensation, rent, taxes, and investor
relations expense, decreased in 2010 by $0.1  million. The decrease was
primarily due to a decline in legal, accounting, and consulting
expenditures associated with a proposed public offering during 2009.

Non-Cash Stock Option Expense (which is included in general and
administrative and technical services expenses in our statement of
operations) increased by $1.4  million during 2010 primarily because of
$1.8  million of expense associated with the grant of approximately
1.3  million options during 2010. The 2009 stock option expense was the
result of recognizing additional compensation expense as options granted
or re-priced in prior years vested.

The $0.7  million increase in Other Expense includes a $0.5  million
increase in loss recognized due to a change in the fair market value of
warrant derivatives and a decrease of $0.2  million in interest income
during 2010 as a result of utilizing funds for operating activities
during 2010.

Liquidity and Capital Resources

At December  31, 2010, our aggregate cash, short term investments, and
long term investments totaled $10.1  million compared to $13.8  million at
December  31, 2009. Cash flows provided by financing activities were
$0.5  million in 2010 compared to $1.8  million utilized in 2009,
primarily to pay off the balance on the line of credit. The net cash
used for operating activities during 2010 was $6.7  million, which
consisted primarily of permitting, environmental, exploration, and
engineering expenses for the Montanore project and general and
administrative expenses, compared with $7.4  million of cash used for
operating activities in 2009. Cash provided by investing activities for
2010 was $4.9  million, primarily from the early withdrawal of funds from
a certificate of deposit, compared with $0.1  million of cash used in
investing activities in 2009. The net decrease in cash and cash
equivalents for the year ending December  31, 2010 was $1.2  million.

We anticipate expenditures in 2011 of approximately $8.0  million, which
we expect will consist of (i)  $1.5  million in each quarter for ongoing
operating and general administrative expenses and (ii)  $0.5  million in
each quarter for permitting, engineering and geologic studies to
finalize our permitting of the Montanore Project. The recently completed
public offering of $15.1  million net proceeds will provide adequate cash
availability for years 2011 and 2012 to fund ongoing environmental,
engineering, permitting and general and administrative expenses. The
Company′s aggregate cash and liquid investments totaled $23.1 million as
of April 29, 2011. Additional financing, however, will be required to
complete the evaluation drilling program and a bankable feasibility
study.

About Mines Management

Mines Management, Inc. is engaged in the business of acquiring and
exploring, and if exploration is successful, developing mineral
properties containing precious and base metals. The Company′s primary
focus is on the advancement of the Montanore silver-copper project, an
advanced stage exploration project, located in northwestern Montana.

Statements Regarding Forward-Looking Information:Some
statements contained in this press release are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 and other applicable securities laws. Investors are
cautioned that forward-looking statements are inherently uncertain
and involve risks and uncertainties that could cause actual results to
differ materially, including comments regarding the use of proceeds from
the underwritten public offering,further exploration and
evaluation of the Montanore project, including drilling activities,
feasibility determinations, including those in the PEA, engineering and
environmental studies, environmental, reclamation and permitting
requirements and the process and timing and the costs associated with
the foregoing, financing needs, including the financing required to fund
the final phases of the advanced exploration and delineation drilling
program and a bankable feasibility study, the sufficiency of working
capital to complete the rehabilitation of the Libby adit and commence
delineation drilling and planned expenditures and cash requirements for
2011.Actual results may differ materially from those presented.Factors that could cause results to differ materially include
fluctuations in silver and copper prices.Mines Management, Inc.
assumes no obligation to update this information.There can be no
assurance that future developments affecting Mines Management, Inc. will
be those anticipated by management. Please refer to the discussion of
risk factors in the Company's Form 10-K for the year ended December 31,
2010, as amended.

Mines Management, Inc.

Douglas Dobbs, Vice President Corporate
Finance and Development

509-838-6050

info@minesmanagement.com