MINES MANAGEMENT ANNOUNCES 2007
YEAR END FINANCIAL RESULTS

Spokane, Washington - April 8, 2008 -- Mines Management, Inc. (AMEX: MGN, TSX: MGT) ("the Company") is pleased to announce operational and financial results for the year ending December 31, 2007.

2007 Highlights

• Successfully completed financing activities, including completion of public equity offering in second quarter 2007 with gross proceeds of $34.2 million and completion of a private placement with gross proceeds of $10 million in November 2007.
• 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.
• Procurement and delivery of underground and surface equipment to rehabilitate the Libby adit, extend the adit towards the ore body and develop the drill stations for the drilling program.
• Hired an additional 12 employees including Vice President/General Manager for the Montanore Project, Project Engineer, Senior Site Geologist and additional operations staff for the site.
• Completed and submitted a preliminary draft EIS in November 2007; advanced the permitting process by working closely with state and federal agencies.
• Maintained a strong cash and cash equivalents position of more than $32.3 million as of December 31, 2007.

Financial and Operating Results

Mines Management, Inc. reported a net loss for the year ended December 31, 2007 of $8.4 million or $0.38 per share compared to a loss of $6.0 million or $0.47 per share for the year ending December 31, 2006. The 2007 increase of $2.4 million in net loss versus 2006, and the 2006 net loss increase of $0.8 million versus 2005, was primarily due to increased capital investment and administrative expenses in support of the Montanore Project.

Expense Summary

Montanore Project expense includes exploration, fees, filing and licenses, environmental, engineering and permitting expense.  Increased activity on the Montanore Project primarily resulted from increased payments to consultants for permitting activities, collecting additional environmental baseline data, mineralized material and resource studies, and exploration activities related to reopening the Libby adit.  Administrative Expense, which includes general overhead and office expense, legal, accounting, compensation, rent, taxes, and investor relations expense, increased $2.9 million or 107% in 2007 over 2006. This increase is attributed to the purchase in November 2007 of the MRC 5% net proceed Royalty for $500,000, expensing of $500,000 in property charges related to a write down, addition of seven staff members, salary increases among existing staff and increased legal and accounting fees asso ciated with our cross-border equity financings in 2007 that resulted in gross proceeds of $44.2 million.  Stock option expense, which includes stock options granted to officers, employees and consultants, increased $0.1 million from 2006 to 2007, while interest income increased significantly by $0.8 million due to the increased cash on hand after completing the public and private stock offerings.

Liquidity and Capital Resources

At December 31, 2007, our aggregate cash, short term investments, and long term investments totaled $32.6 million compared to $5.2 million at December 31, 2006. In 2007, we received $41.6 million in net proceeds from the sales of common stock from a public offering in the second quarter of 2007 and a private placement in November 2007.  The net cash used for operating activities during 2007 was $5.1 million, which consisted primarily of permitting, environmental, exploration, and engineering expenses for the Montanore project and general administrative expenses. We purchased $6.1 million in fixed assets in 2007, which principally consisted of equipment for rehabilitating and extending the adit.  We spent $3.1 million in 2007 for infrastructure classified as construction in progress at the Montanore Project site. The net increase in cash and cash equivalents for the year ending December 31, 2007 w as $29.0 million. 

We anticipate capital expenditures in 2008 of approximately $22.7 million which will consist of (i) $1.3 million in each quarter for ongoing operating and general administrative expenses, (ii) $2.5 million in the first quarter to begin the exploration and delineation drilling program at the Montanore Project and (iii) $5.0 million in each remaining quarter to sustain efforts in furtherance of the program. We will require external financing in 2008 and 2009 to fund the completion of the advanced exploration and delineation drilling program and completion of a bankable feasibility study.

Advanced Exploration and Delineation Drilling Program

In 2006, we acquired the property providing access to the 14,000 foot Libby adit.  With additional development, the Libby adit will provide access to the Montanore deposit.  We also acquired two permits related to the Libby adit that, with minor revisions, allow us to reopen, dewater and rehabilitate the adit.

In 2007, as part of the advanced exploration and delineation drilling program at Montanore, we completed the construction and startup of a water treatment facility.  The objectives of our underground evaluation program are to:

• Expand the known higher grade intercepts of the Montanore deposit;
• Develop additional information about the deposit;
• Further assess and define the mineralized zone; and
• Provide additional geotechnical, hydrological and other data.

Stage 1�Dewatering and Adit Rehabilitation

With the exception of the first 600 feet, the length of the Libby adit contains water.  During the first stage of the evaluation drilling program, we plan to dewater the adit, and treat the discharged water using ultra-filtration and possibly chemical pre-treatment so that discharged water, both during the dewatering process as well as during development of the adit and drilling program, meets Montana�s water quality standards. We completed the pilot scale tests of the water treatment plant in November 2007.  We have been delayed starting the dewatering pending approval by the Forest Service of an environmental assessment (EA) for road use.  As dewatering begins, we plan to rehabilitate the adit, which we anticipate to involve, among other activities, scaling the walls, installing new roof bolts and extending electricity, ventilation and dewatering infrastructure into the adit. We estim ate that Stage 1 activities will cost approximately $7.3 million.

Stage 2�Advancement of Adit, Drifting and Establishment of Drill Stations

Once rehabilitation is complete, we plan to advance the adit approximately 3,000 feet towards the middle of the deposit.  Following the advancement of the adit, we expect to commence 10,000 feet of development drifting, which will be necessary to provide drill access.  The process of drifting and the establishment of drill stations will continue throughout the remainder of the program.  We expect that Stage 2 will cost approximately $7.5 million.

Stage 3�Phase I Delineation Drilling

In Stage 3 of the advanced exploration and delineation drilling program, we expect to commence approximately 20,000 feet of delineation diamond core drilling.  We expect to spend approximately $0.5 million on Phase I delineation drilling. We also expect to spend approximately $12.7 million during Stages 1, 2 and 3 on site operating and capital costs, optimization studies and general corporate support.

Stage 4�Phase II Drilling and Bankable Feasibility Study

During this stage we anticipate completing an additional 25,000 feet of diamond core drilling, undertaking additional metallurgical and geotechnical testing and analysis, and if the results of our exploration are successful, preparing for and completing a bankable feasibility study at an estimated cost, with site operating and capital costs, of approximately $10.0 million.

Permitting of the Montanore Project

The agencies completed preparation of the preliminary draft EIS in the fourth quarter of 2007, which is currently being reviewed internally by the agencies.  We continue to address technical questions and comments generated by the USFS and the State during the EIS review process.

Once the agencies have completed their review, the final draft EIS and the draft permits are provided to the public for review and comment. The agencies may consider public comments in preparing the final EIS and final permits. If the public review process is successfully completed, the agencies would proceed to determine the form of the final EIS and permits and would issue a joint Record of Decision setting forth their decisions on our proposed plan of operations and hard rock mining program.  Following issuance of the Record of Decision, and resolution of any appeals or legal challenges to the Record of Decision, we would receive the required permits and finalize the
Montanore Project Description based on the results of the completed agency review.

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 statem ents 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.

                                                                       
Contact:
Mines Management, Inc.
Douglas Dobbs, Vice President Corporate Development & Investor Relations
Phone: 509-838-6050
Email:    info@minesmanagement.com