MINES MANAGEMENT ANNOUNCES 1ST QUARTER RESULTS

Spokane, Washington � May 27, 2008 -- Mines Management, Inc. (AMEX: MGN, TSX: MGT) ("the Company") is pleased to announce operational and financial results for the quarter ending March 31, 2008.

Advancing the Montanore Silver-Copper Project continues to be the Company�s main focus. In addition to its planned advanced exploration and delineation drilling program, the Company is continuing its repermitting efforts with federal and state agencies and its optimization review of the Project.

Overview

In the first quarter of 2008, the Company:

• Received notice from Montana Department of Environmental Quality (DEQ) confirming that Hard Rock operating Permit 150, originally issued in 1993, was transferred to the Company with the acquisition of Noranda Mineral Corporation in 2006.
• Hired Mr. John Thompson, Vice President/General Manager for the Montanore Project, effective January 1, 2008.
• Selected Small Mine Development of Boise, Idaho (SMD) as contractor to manage activities related to rehabilitation and advancement of the Libby adit and drill station development.
• Maintained a strong cash and cash equivalents position of more than $32.3 million as of December 31, 2007.

The Company has initiated its planned two-year advanced exploration and delineation drilling program at the Montanore Project. During the first quarter of 2008, the Company continued to make preparations for the commencement of drifting and delineation drilling, including commissioning of the water treatment plant and preliminary work on the rehabilitation of the Libby adit. Full scale dewatering and rehabilitation are expected to begin upon completion of the environment assessment covering the Company�s proposed road use during the program by the U.S. Forest Service.

When dewatering and rehabilitation is complete, the Company plans to advance the adit approximately 3,000 feet toward the center of the deposit, then complete an additional 10,000 feet of development drifting to provide drill access to different portions of the deposit, construct drill stations, and complete diamond core drilling of approximately 50 holes totaling approximately 45,000 feet.

The objectives of the advanced exploration and delineation drilling program are to:

• Expand the known higher grade intercepts of the Montanore deposit;
• Commenced the advanced underground exploration program at the Montanore Site by completing construction of a water treatment plant and dry storage facility in November 2007.
• Further assess and define the mineralized zone; and
• Provide additional geotechnical, hydrological, and

Results of the drilling program, if successful, are expected to provide data to support the completion of a bankable feasibility study.

The net cash expenditures for the quarter ending March 31, 2008 were $0.9 million for the purchase of equipment and commissioning of the water treatment plant and other site infrastructure and $2.5 million for operating activities. The Company believes that it has sufficient working capital for rehabilitation of the Libby adit and commencement of drifting and delineation drilling.

Advanced Exploration and Delineation Drilling Program

In the first quarter of 2008, the Montanore Project continued to make progress on several fronts. Construction work at the site included commissioning of the water treatment plant and construction of an outside storage facility. Minor modifications were made during the testing and initial start up of the water treatment plant, which included the addition of a pH control system and miscellaneous adjustments to various programmable control systems. Additional work on the water treatment system included the design of the underground sumps and the rehabilitation of approximately 100 ft. of adit immediately beyond the steel sets. A contract for the design and engineering study of a nitrate removal system to be added to the water treatment plant was awarded in the first quarter.

Additional work directly related to the rehabilitation included an initial ground control and support evaluation of the existing ground conditions by an outside ground support consultant. A request for quotation was prepared and sent out to several mining contractors for the rehabilitation work. Bids were received back and evaluated with an award in March 2008 for the work to Small Mine Development of Boise, Idaho. Work was also initiated on the layout and design of the delineation drilling program.

The commissioning and start-up of the Sandvik roof bolting machine and the Getman scaler have been completed with both machines functioning satisfactorily. Equipment received during the first quarter included an underground lube/service truck and a scissor lift platform truck.

Permitting and Environmental

In the first quarter of 2008, the Company continued to work with the federal and state agencies reviewing the preliminary draft environmental impact statement (PDEIS). Included in this review is the development of monitoring plans and mitigation for the Project to address potential impact on surface and ground water, grizzly bear, bull trout, and other natural resources. Management expects that a draft EIS will be issued to the public for comment this summer.

An updated Plan of Operations was submitted to the Montana DEQ in February 2008 and, upon request from the DEQ, the Company withdrew its 2004 permit application. The DEQ will consider the updated plan as a formal request to revise the existing permit and its approval of the proposed revisions is pending the completion of the EIS in coordination with the USFS.

Commencement of dewatering and rehabilitation of the Libby adit are pending approval by the U.S. Forest Service (USFS) of an environmental assessment regarding the Company�s proposed road use during that process. The EA was requested by the USFS in mid-2007 and submitted for review in August 2007.

Financial and Operating Results

Mines Management is an exploration stage company with a large silver-copper project, the Montanore Project, located in northwestern Montana. The Company continues to expense all of its expenditures with the exception of equipment and infrastructure which are capitalized. The Company has no revenues from mining operations. Financial results of operations include primarily interest income, general and administrative expenses, permitting, project advancement and engineering expenses.

Quarter Ended March 31, 2008

The Company reported a net loss for the quarter ended March 31, 2008 of $1.8 million, or $0.08 per share, compared to a net loss of $1.8 million, or $0.14 per share, for the quarter ended March 31, 2007. There were increases in operating expenses of approximately $50,000, principally in administrative expenditures, compensation, environmental expenses, equipment rental and depreciation, during the first quarter of 2008 compared to the first quarter of 2007. These increases resulted from additional investor relation activities in 2008 and the addition of employees, equipment, and infrastructure to support the Company�s advanced exploration and delineation drilling program. Permitting costs decreased by approximately $0.5 million during the first quarter of 2008 compared to the first quarter of 2007 because there were substantial expenditures during 2007 related to the assessment and design of the water treatment system.

Liquidity

During the quarter ended March 31, 2008, the net cash used for operating activities was $2.5 million, which consisted largely of permitting and administrative expenses associated with increased activities at the Montanore Project site. The net cash used in investing activities during the quarter was $0.9 million for procurement of equipment and construction in progress.

The Company anticipates spending approximately $15.6 million from cash and investments on hand during the final three quarters of 2008 for activities and equipment purchases related to the advanced exploration and delineation drilling program and repermitting efforts at the Montanore Project. The Company believes that it has sufficient working capital for rehabilitation of the Libby adit and commencement of delineation drilling.

Mines Management, Inc., is a U.S. based mineral exploration company in the business of acquisition, exploration and development of precious and base metals minerals deposits. Currently, the Company is focused on advancement of the Montanore Silver-Copper Project located in northwestern Montana. The Montanore Project is currently undergoing an advanced stage exploration and evaluation program and re-permitting process.

This press release contains forward-looking statements regarding the Company, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding further exploration and evaluation of the Montanore Project, including planned rehabilitation and extension of the Libby adit, drilling activities, feasibility determination, engineering studies, environmental and permitting requirements, process and timing, and financing needs; the markets for silver and copper, planned expenditures in 2008 and 2009; and potential completion of a bankable feasibility study. The use of any of the words "anticipate," "estimate," "expect," "may," "project," "should," "believe," and similar expressions are intended to identify uncertainties. These statements are based on assumptions that the Company believes are reasonable but that are subject to uncertainties and business risks. Actual results relating to any and all of these subjects may differ materially from those presented. Factors that could cause results to differ materially include fluctuations in silver and copper prices, negative results of environmental studies, problems or delays in or objections to the permitting process, the proximity of the Project to the Cabinet Wilderness Area, failure or delay of third parties to provide services, changes in the attitude of state and local officials toward the Montanore Project and other factors discussed in the Company's periodic filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2007.