News Release

SPOKANE, Wash -- August 4, 2005 -- Mines Management, Inc. (AMEX:MGN - News) is pleased to announce its decision to initiate re-permitting of the Montanore Silver-Copper Project, containing an estimated 260 million ounces of silver and 2 billion pounds of copper. The project was fully permitted as recently as 2002, prior to the previous operator’s withdrawal and transfer of ownership to Mines Management, Inc.

Company president, Glenn Dobbs stated, “Although the recent strength in metals prices can make any mining project more attractive, we have been especially encouraged by improved economics derived from revisions to the original mine plan. The State of Montana, Department of Environmental Quality and representatives at the U.S. Forest Service have been helpful and encouraging as we have addressed the feasibility of moving the project forward. We look forward to taking this outstanding mining project the next step toward production.”

“The project was fully permitted as recently as two years ago. With the existing Environmental Impact Statement (EIS) as the basis for re-permitting, we believe the process will be significantly shorter than if we were starting from scratch.” According to Dobbs, the Company anticipates a 20-24 month permitting period.

The recently announced interim revised mine plan was designed to optimize the previous operator’s plan, and envisions a mining capacity of 12,500 tons per day, producing an estimated 8 million ounces of silver and 64 million pounds of copper per year. The capital cost was estimated to be $236 million with a cash operating cost of less than $3.00 per ounce of silver equivalent.

Mines Management, Inc. is a U.S. based mineral development company focused on the exploration and development of silver dominant deposits. The 2002 acquisition of the Montanore silver-copper project places the Company in the top tier of silver companies in the world on the basis of geological resource. More than $100 million has been spent on the project by previous operators, including the construction of a 14,000 ft. tunnel, complete mine plan and engineering, environmental assessment and permitting, prior to relinquishing it to Mines Management.

This release contains certain forward-looking statements within the meaning of the Federal Securities Laws. Such statements are based on assumptions that the Company believes are reasonable but which are subject to a wide range of uncertainties and business risks. Factors that could cause actual results to differ from those anticipated are discussed in the Company’s periodic filings with the Securities and Exchange Commission, including its annual report on Form 10-KSB for the year ended December 31, 2003.

Further information about Mines Management, Inc. can be reviewed on the website for the Securities and Exchange Commission at www.sec.gov or on the company's website at www.minesmanagement.com.

Contact:

     Douglas Dobbs
     Director, Corporate Development & Investor Relations

     Mines Management, Inc.
     Douglas Dobbs, 509/838-6050
     fax: 509/838-0486
     email: info@minesmanagement.com
     website: www.minesmanagement.com



Mines Management Announces Decision to Initiate Re-Permitting of the Montanore Silver-Copper Project Wednesday, August 4, 2004
Press Release
SPOKANE, Wash -- August 4, 2005 -- Mines Management, Inc. (AMEX:MGN - News) is pleased to announce its decision to initiate re-permitting of the Montanore Silver-Copper Project, containing an estimated 260 million ounces of silver and 2 billion pounds of copper. The project was fully permitted as recently as 2002, prior to the previous operator’s withdrawal and transfer of ownership to Mines Management, Inc. Company president, Glenn Dobbs stated, “Although the recent strength in metals prices can make any mining project more attractive, we have been especially encouraged by improved economics derived from revisions to the original mine plan. The State of Montana, Department of Environmental Quality and representatives at the U.S. Forest Service have been helpful and encouraging as we have addressed the feasibility of moving the project forward. We look forward to taking this outstanding mining project the next step toward production.” “The project was fully permitted as recently as two years ago. With the existing Environmental Impact Statement (EIS) as the basis for re-permitting, we believe the process will be significantly shorter than if we were starting from scratch.” According to Dobbs, the Company anticipates a 20-24 month permitting period. The recently announced interim revised mine plan was designed to optimize the previous operator’s plan, and envisions a mining capacity of 12,500 tons per day, producing an estimated 8 million ounces of silver and 64 million pounds of copper per year. The capital cost was estimated to be $236 million with a cash operating cost of less than $3.00 per ounce of silver equivalent. Mines Management, Inc. is a U.S. based mineral development company focused on the exploration and development of silver dominant deposits. The 2002 acquisition of the Montanore silver-copper project places the Company in the top tier of silver companies in the world on the basis of geological resource. More than $100 million has been spent on the project by previous operators, including the construction of a 14,000 ft. tunnel, complete mine plan and engineering, environmental assessment and permitting, prior to relinquishing it to Mines Management. This release contains certain forward-looking statements within the meaning of the Federal Securities Laws. Such statements are based on assumptions that the Company believes are reasonable but which are subject to a wide range of uncertainties and business risks. Factors that could cause actual results to differ from those anticipated are discussed in the Company’s periodic filings with the Securities and Exchange Commission, including its annual report on Form 10-KSB for the year ended December 31, 2003. Further information about Mines Management, Inc. can be reviewed on the website for the Securities and Exchange Commission at www.sec.gov or on the company's website at www.minesmanagement.com. Contact: Douglas Dobbs Director, Corporate Development & Investor Relations Mines Management, Inc. Douglas Dobbs, 509/838-6050 fax: 509/838-0486 email: info@minesmanagement.com website: www.minesmanagement.com Source: Mines Management, Inc.