MINES MANAGEMENT ANNOUNCES
FIRST QUARTER RESULTS

SPOKANE, WASHINGTON – May 17, 2007 – Mines Management, Inc. (Amex: MGN, TSX: MGT) is pleased to announce results for the first quarter of 2007. The Company reported a net loss for the quarter ended March 31, 2007 of $1.8 million, or $0.14 per share compared to $1.1 million loss, or $0.08 per share for the quarter ended March 31, 2006. The $0.7 million increase in net loss was attributed to increased expenditures for the first quarter 2007 compared to first quarter 2006 resulting from increased activity for the Montanore Project including permitting, technical studies, and preparation for the Libby adit rehabilitation and delineation drilling program, and corporate legal, accounting, and administrative expenses relating to the public offering completed on April 20, 2007.

Overview

In the first quarter of 2007, the Company:

• Maintained strong cash and investment position with $3.5 million on hand at March 31, 2007.
• Continued adding infrastructure at the Libby adit site.
• Completed a water quality pilot plant test and analysis in the Libby adit.
• Continued work with state and federal agencies to provide technical information in support of the preparation of the draft of the environmental impact statement.
• Finished a detailed schedule and budget for the next two years for the Montanore project.

Subsequent to the end of the first quarter, on April 20, 2007, the Company completed a US$30,000,000 public offering at $5.00 per unit in which 6,000,000 units, each comprised of one share of common stock and one half of a warrant to purchase one share of common stock, were sold, resulting in US$28,200,000 net proceeds to the Company after deducting underwriting commissions but before deducting offering expenses. As a result, the Company has sufficient funds on hand for the first three phases of its planned advanced exploration and delineation drilling program that it expects to undertake at the Montanore Project over the next two years. The Montanore Project continues to be the Company’s main focus and, in addition to the planned delineation drilling program, the Company is continuing its permitting efforts with federal and state agencies and its optimization review.

The Company has initiated its planned two-year advanced exploration and delineation drilling program at the Montanore Project. We expect to dewater and rehabilitate the Libby adit, and then advance the adit approximately 3,000 feet toward the middle of the deposit. We plan 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 our advanced exploration and delineation 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.

We expect that results of the drilling program, if successful, would provide data to support the completion of a bankable feasibility study. The net cash expenditures for operating activities for the quarter ending March 31, 2007 was $1.7 million. The Company believes that the recently completed financing, raising $28.2 million, net of commissions but before expenses, provides sufficient working capital for rehabilitation of the Libby adit and commencement of the evaluation drilling program over the next two years. In order to complete the planned program, the Company would need an additional $10 million in external financing.

Permitting and Environmental

During the first quarter of 2007, MMI continued to address technical questions and comments generated by the U.S. Forest Service and the Montana Department of Environment Quality (MDEQ) as they prepare the draft environmental impact statement (EIS) relating to the Montanore Project. In response, MMI submitted final technical information for the proposed tailings dam design and the transmission line and additional technical information regarding road use, mitigation of impact on grizzly bear and grizzly bear habitat and water management.

The collection of the requested information culminated in the submission by MMI in February 2007 of a revised project description for the EIS incorporating all technical comments generated by the agencies to that point. Our third-party EIS contractor continues to work on alternative analyses of the environmental impacts of the Project.

Geology

In the first quarter of 2007, MMI continued work on the geologic model of the Montanore deposit, including digitally defining shapes that represent bedding planes and rock types. This geologic model will be enhanced with the results of the planned delineation drilling program, with the goal of better defining the predictability of the deposit ore grades and of the ore and mineralized zones.

During the first quarter of 2007, MMI also identified potential geology staff for the Project with an emphasis on employing individuals to work on the upcoming delineation drilling program.

Engineering

The primary engineering focus during the first quarter of 2007 was the activity associated with installing infrastructure at the Libby adit site in preparation for the commencement of delineation drilling. Montanore Project optimization opportunities continued to be reviewed and developed by the engineering staff.

Advanced Exploration and Delineation Drilling Program

In July 2006, MMI initiated site preparation for the delineation drilling program planned at the Libby adit. These efforts continued in the first quarter of 2007, during which time MMI completed construction of the shop, office, and rehabilitation of the portal and generators. Ventilation fans and other equipment were installed in the Libby adit site.

Following completion of the pilot scale tests of the water treatment method in 2007, MMI prepared a bid package that should be submitted in the second quarter of 2007, with delivery and commencement of operation of the water treatment plant anticipated to occur late in the second quarter and early third quarter of 2007.

Also in the first quarter of 2007, MMI placed orders for underground equipment including a roof bolter, scissor deck, underground loader, and underground trucks, which are expected to begin arriving in May or June of 2007, with deliveries continuing throughout the year.

MMI currently has four employees at the adit site and plans to hire four additional employees starting in the second quarter of 2007.

Financial and Operating Results

Mines Management is an exploration stage company with a large silver/copper project, the Montanore Project, located in northwest 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 and engineering expenses, and other miscellaneous.

Liquidity

For the quarter ended March 31, 2007, the net cash used for operating activities was $1.7 million, which largely consisted of permitting, engineering and site preparation expenses for the Libby adit rehabilitation and delineation drilling program. The net cash provided by investing activities for the quarter was $1.6 million from the sale of certificates of deposit. The net decrease in cash on hand at the end of the first quarter 2007 versus year end 2006 was $0.1 million. The Company anticipates spending approximately $15 million from cash and investments on hand for the final three quarters of 2007 for activities related to the Libby adit rehabilitation and delineation drilling program.

About Mines Management

Mines Management, Inc. is an advanced exploration stage company focused on the acquisition, exploration and advanced of precious and base metals mineral deposits. The Company is currently focused on the advancement of the Montanore Silver-Copper Project located in northwestern Montana. The Montanore Project contains a large silver and copper resource.

Forward Looking Statements

Some information contained in or incorporated by reference into this report may contain forward looking statements. These statements include comments regarding the sufficiency of funds on hand for the first three phases of its planned advanced exploration and delineation drilling program at the Montanore Project; Montanore Project permitting, the commencement and completion of activities related to the planned dewatering, rehabilitation and advancement of the Libby adit; development drifting and delineation drilling program; expectation that the results of the drilling program, if successful, would provide data to support a bankable feasibility study; requirement for an additional $10 million in external financing to complete the planned program; expectation that the drilling program will enhance the geologic model; timing of delivery and commencement of operation of the water treatment plant and underground equipment; and plans to hire additional staff. The use of any of the words”, “anticipate”, “continues”, “estimate”, “expect”, “may”, “project”, “should”, “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 following actors: 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 underground drifting and drilling operations; delays in the timing of delivery of needed equipment, unfavorable results of drilling, variations in grade and other characteristics, permitting problems and delays, the availability, terms, conditions and timing of required governmental permits and approvals, 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.