MINES MANAGEMENT ANNOUNCES THIRD QUARTER EARNINGS
AND MONTANORE SILVER-COPPER PROJECT UPDATE

Spokane, Washington � November 15, 2007 � MINES MANAGEMENT, INC. (Amex: MGN, TSX: MGT) (the "Company") is pleased to provide an update on activities occurring during the third quarter of 2007.  

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 permitting efforts with federal and state agencies and its optimization review of the Project. During the third quarter of 2007, construction and installation of a water treatment plant was the main activity at the Montanore Project site, with testing and commissioning of the plant scheduled for November 2007.

Overview

In the third quarter of 2007, the Company:

·         Maintained a strong cash position, with $26.3 million at September 30, 2007.

·         Continued preparations for the advanced exploration and delineation drilling program by:

o        commencing installation and construction of the water treatment plant and building, which was completed as of October 31, 2007,

o        hiring additional staff at the Project site to support initiation of underground activities at the Libby adit, and

o        receiving shipments of underground mining and surface equipment.

·         Advanced the permitting process by working closely with state and federal agencies to provide technical and other information in support of the preparation of the draft environmental impact statement.

During the third quarter, our progress at the Project site included the installation of a water treatment plant and construction of the ventilation support structure in preparation for the commencement of rehabilitation activities in the Libby adit. The Company expects to start the dewatering and rehabilitation of the Libby adit late in the fourth quarter of 2007, once the final approval of the Environmental Assessment for road use is received. Following dewatering and rehabilitation, the Company expects to advance the adit approximately 3,000 feet toward the middle of the mineral deposit.

The Company plans an additional 10,000 feet of development drifting to provide drill access to different portions of the deposit, construction of drill stations, and 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;

·         Develop additional information about the deposit;

·         Further assess and define the mineralized zone; and

·         Provide additional geotechnical, hydrological, and other data.

The Company expects that results of the drilling program, if successful, would provide data to support the completion of a bankable feasibility study, allowing the Company to convert a portion of its mineralized material/resource estimates into reserves.

The net cash expenditures for the quarter ending September 30, 2007, were $3.4 million for the purchase of equipment and construction of the water treatment plant and other infrastructure and $0.6 million for operating activities. The Company believes that it has sufficient working capital for rehabilitation of the Libby adit and commencement of the delineation drilling program.

Advanced Exploration and Delineation Drilling Program

During the third quarter of 2007, the Company continued preparations for the exploration and delineation drilling activities at the Libby adit site. The water treatment plant components were delivered during the quarter and installation of the plant was completed October 31, 2007, with testing and startup activities beginning on November 1, 2007. Other activities included the delivery of major mine equipment, pump stations, power load centers and other key equipment necessary for the delineation drilling program. Installation of the ventilation duct work was completed for the first several hundred feet of the adit.

Technical staff and site personnel numbers remained relatively constant with an electrician and general laborer added to the site staffing. The Company expects to begin rehabilitation activities at the Libby adit once the approval of the Environmental Assessment (EA) is received from the U.S. Forest Service (USFS) and dewatering commences. The EA is scheduled to be approved in early December 2007.

Major equipment for the rehabilitation stage of the program is either on site or scheduled for delivery in the fourth quarter of 2007, or early in the first quarter of 2008. Costs for the major equipment are within budget, and it is still anticipated that expenditures through the end of 2007 will be approximately $6.5 million for equipment and activities related to the preparation for commencement of the drilling program.

During the third quarter, the Company also advanced the geologic model for the project, and it is expected that the updated model will be completed in the fourth quarter. The Libby site engineering and geologic staff continues to focus their efforts on optimization of the current proposed mine plan. During the fourth quarter of 2007, the Company expects to initiate discussions and solicit proposals from outside engineering firms on the task of updating the current cost study to a bankable feasibility study by incorporating the results of the delineation drilling program.

Permitting and Environmental

The Company continued work with the U.S. Forest Service and the Montana Department of Environmental Quality in the third quarter of 2007 on the final stages of the preliminary draft Environmental Impact Statement (EIS). It is anticipated that the preliminary draft will be issued to the agencies for internal review early in November. The preliminary draft EIS will be reviewed for content and then jointly edited to produce the draft EIS which will be submitted for public comment. The agencies' schedule indicates the completion of the draft EIS by April 2008.

The Company also continues to work with the State of Montana to develop the 404 permit application, which will establish allowable discharge levels, and collect baseline environmental information to support our permit applications. Formal permit applications will be submitted concurrently with the submission of the draft EIS for public comment.

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 and 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 September 30, 2007

The Company reported a net loss for the quarter ended September 30, 2007 of $1.7 million, or $0.09 per share, compared to a net loss of $1.4 million, or $0.11 per share, for the quarter ended September 30, 2006. The $0.3 million increase in net loss was attributed to a $0.3 million increase in the third quarter of 2007 in legal, accounting, financing, and administrative expenses related to increased investor relations activities in support of the Montanore Project, and a $0.2 million increase in employee compensation as a result of salary increases and the addition of thirteen new employees, offset by a $0.3 million increase in interest income received in the third quarter of 2007 compared to the third quarter of 2006 from earnings on the $32.1 million net proceeds of the Company's public offering in April 2007. Overall Project spending also increased in the third quarter of 2007 compared to the third quarter of 2006 as a result of increased permitting activities and site preparation for the delineation drilling program.

Nine Months Ended September 30, 2007

The Company reported a net loss for the nine months ended September 30, 2007 of $5.1 million or $0.30 per share compared to a net loss of $4.0 million, or $0.31 per share, for the nine months ended September 30, 2006. The $1.1 million increase in net loss for the nine months ended September 30, 2007, compared to the nine months ended September 30, 2006, is largely attributable to a $0.3 million increase in legal, accounting and administrative expenses related to the increased cost of implementing additional Sarbanes-Oxley internal control procedures and investor relations activities related to the public offering completed in April 2007, increased compensation expense of $0.5 million, a net $0.3 million increase in all other activities and a $0.3 million increase in stock option expense due to new hires and repricing of options in accordance with Company policy. These increased expenditures of $1.6 million were offset by an increase of $0.5 million in interest income for the first nine months of 2007 from earnings on the proceeds of the Company's public offering in April 2007.

Liquidity

During the quarter ended September 30, 2007, the net cash used for operating activities was $0.5 million, which consisted largely of permitting and administrative expenses associated with increased activities at the Montanore Project. The net cash used in investing activities during the quarter was $3.4 million for procurement of equipment and construction in progress. For the nine months ended September 30, 2007, the net cash from financing activities was $31.6 million, consisting of proceeds from the public offering completed in April 2007. The net cash on hand at the end of the first nine months of 2007 was $26.3 million, compared to $2.1 million at end of the first nine months of 2006.

The Company anticipates spending approximately $6.5 million from cash and investments on hand during the final quarter of 2007 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 the delineation drilling program which will take place over the next two years. In order to complete the planned program, the Company expects that it will require approximately $10 million in additional financing.

Subsequent to the end of the third quarter, the Company completed a $10 million private placement of its common stock on November 5, 2007. The proceeds of that transaction are expected to be used for working capital and general corporate purposes, including advancement of the Montanore Project and potential acquisitions.

Forward Looking Statements

Some information contained in or incorporated by reference into this report may contain forward looking statements. These statements include comments 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, financing needs, planned expenditures in 2007 and 2008, potential completion of a bankable feasibility study, and the use of proceeds received from the Company�s recent private placement transaction and the markets for silver and copper. The use of any of the words �development�, "anticipate", "continues", "estimate", "expect", "may", "project", "should", "believe", and similar expressions are intended to identify uncertainties. The Company believes the expectations reflected in those forward looking statements are reasonable. However, the Company 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 and incorporated by reference into this report: Worldwide economic and political events affecting the supply of and demand for silver and copper; volatility in the market price for silver and copper; financial market conditions and the availability of financing on acceptable terms; 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 processing problems; the availability, terms, conditions and timing of required governmental permits and approvals, and potential opposition to the majority of permits; uncertainty regarding future changes in applicable law or implementation of existing law; the availability of experienced employees; the factors discussed under "Risk Factors" in our Form 10-K, as amended, for the period ending December 31, 2006.