News Release

SPOKANE, Wash -- December 6, 2005 -- Mines Management, Inc. (AMEX:MGN) is pleased to report on the status of its operations and its interim financial results for the third quarter and the nine months ending September 30, 2005.

Permitting and Environmental

During the third quarter of 2005, we continued to advance the permitting process and optimization review for the Montanore project. As part of the Environmental Impact Statement (EIS) process, the public comment period for the Montanore Project closed in September 2005. The U.S. Forest Service (the "USFS") and the Montana Department of Environmental Quality (the "Montana DEQ") have compiled a list of comments and issues that will be incorporated into the EIS. Portions of the EIS have been completed in draft form by Denver based ERO Resources, the EIS Contractor, and are being reviewed by the USFS and Montana DEQ. Reports and technical data will continue to be developed and updated to address specific EIS issues identified by the federal and state agencies through the end of the fourth quarter.

The 230kv power transmission line permit application was submitted during the second quarter of 2005, was reviewed by the USFS and Montana DEQ, and a decision is expected to be issued concurrently with the EIS.

The Company has initiated field work and technical efforts focused on fisheries habitat evaluation, fisheries population, wildlife, vegetation, threatened and endangered species, visual assessments, and other key environmental elements. At the request of the Montana DEQ, the Company recently completed a water sampling program for the neighboring wilderness lakes to establish current lake and stream baseline conditions. This information was used to support a regional and local hydrologic report update for the project area.

A Montana Discharge Elimination System draft application was submitted to the Montana DEQ for review. This permit is necessary to address water management for the Montanore project. The final application will be submitted pending final Montana DEQ comments.

In the third quarter, the Company held consultation meetings with local tribal organizations, which included a site visit to Montanore. This is the first of several steps required in the permitting process.

During August 2005, public scoping meetings were held in Libby and Trout Creek, Montana, and Bonners Ferry, Idaho. All comments were documented by the USFS and Montana DEQ and will be addressed in the final EIS.

In the fourth quarter of 2005 the Company expects to submit a draft plan to city and county authorities, including an assessment of the anticipated tax revenue and economic benefits of the Montanore project which will define benefits to the local government entities. A meeting with local representatives is scheduled in early November at which input from local community leaders will be incorporated in the final Hard Rock Mine Impact Plan to be submitted to the Montana Hard Rock Impact Board in conjunction with the final EIS submission.

Geology

During the third quarter of 2005, MDA completed an interim draft review of the Montanore deposit and is expected to complete a formal review early in the fourth quarter of 2005. MDA will provide McIntosh Engineering ("McIntosh") data on mineralization to be included in the mine plan and recommendations for a definition drilling program for future stages of project development.

Engineering

McIntosh and Hatch Ltd. ("Hatch") continue work on project engineering, including optimization, trade-off, design revisions, and other key evaluations for the Montanore project.

In the third quarter both companies advanced the engineering work beyond the trade-off study level, and preliminary design specifications/revisions review and are moving into the final phases of preliminary design details. Ventilation studies were completed that could improve mine ventilation costs and potential adit sizes. In addition, McIntosh is now entering the detailed mine planning phase for the entire deposit area covered by the MDA review.

McIntosh is expected to complete their preliminary work early in the fourth quarter of 2005. Hatch also continues to evaluate surface facilities and mill processing and is expected to complete a combined McIntosh and Hatch pre-feasibility report by the end of the fourth quarter of 2005.

During the fourth quarter of 2005, the Company will open preliminary discussions with smelters to test the market for Montanore concentrate. This information is vital to establishing best estimate smelting terms included in the engineering cost estimate report.

We continue to work closely with both McIntosh and Hatch toward completing an optimized engineering report and cost estimate by the end of the fourth quarter of this year.

Financial Report

Mines Management, Inc. reported a net loss for the quarter ended September 30, 2005 of $1,179,540 or $0.11 per share versus a loss of $450,562 or $0.04 per share for the quarter ending September 30, 2004. The increase in net loss of $728,978 was primarily do to an increase in environmental, engineering, and permitting activity on the Montanore project resulting in costs of $530,410; costs related to fees and licenses of $154,243; administrative costs of $100,813; employee compensation of $100,714; and office rent and expense of $15,469, offset in part by a decrease in non-cash stock option expense of $144,908; other miscellaneous expenses of $1,843, and increased income of $25,920.

For the nine months ended September 30, 2005, the Company had a net loss of $3.4 million or $0.31 per share compared to a net loss of $2.3 million or $0.23 per share for the nine months ended September 30, 2004. The increased loss for this period is attributable to the increased activity and expenses for the Montanore Project of $1,093,202. There were fewer options granted in the 2005 period than in the 2004 period, and there was no financing activity in the first three quarters of 2005 to offset 2004 fees. Administrative costs increased as a result of an investor relations program targeted at heightening the visibility of the Company's shares. Compensation increased as a result of hiring two additional employees, the Chief Financial Officer and the Vice President of Operations, in mid-year 2004 and hiring a Manager of Engineering in early June 2005. We also added additional office space in January 2005 to facilitate increased project and engineering demands in 2005.

Year to date, net cash used was $2,080,606 attributable to the increased Montanore project activity in the permitting, engineering, and environmental areas. The Company anticipates spending approximately $1,000,000 in the fourth quarter of 2005 to finalize the pre-feasibility engineering and environmental planning of the Montanore Project. Funding through the end of 2005 will be from cash and investments on hand.

Subsequent to the end of the quarter, on October 21, 2005, the Company completed a private placement for the $6.1 million made to certain accredited investors for 1,016,667 units. The units were priced at $6.00, and were comprised of one share of common stock and half a share purchase warrant, two of which entitle the holder to purchase an additional common share at $8.25. The warrants have a five year term.

The company also filed an application to list its shares on the Toronto Stock Exchange.

Looking forward

During the first quarter of 2006, the Company anticipates completion of a pre-feasibility, as well as a Preliminary Environmental Impact Statement. The pre-feasibility study will be the result of the collaboration between the mining industry consultants reported earlier, and provide the Company with a better understanding of the potential costs to develop and operate the mine. The Company plans to initiate a final feasibility study during 2006.

The Preliminary Environmental Impact Statement will include the results from the numerous environmental baseline studies conducted during the year, many of which were designed to provide updates to the work completed during the original permitting effort in 1993.

Mines Management, Inc. is a U.S. mineral development company focused on the exploration and development of silver dominant deposits. The company's primary focus is the advancement of the Montanore Silver-Copper Project located in northwestern Montana near the town of Libby.

This press release contains forward-looking statements regarding the Company, within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, including statements regarding the anticipated timing of the reports, applications, and plans related to the Montanore permitting process, anticipated completion of the pre-feasibility study, the Preliminary Environmental Impact Statement, and the final feasibility study for the Montanore Project, anticipated expenditures for the remainder of 2005 and the sources of funding for those expenditures. 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 economic and political events affecting supply of and demand for silver and copper, 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-KSB, as amended, for the year ended December 31, 2004.

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
     Vice President, 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 Reports Operational Update and 3rd Quarter Results Tuesday, December 6, 2005
Press Release 05-11
SPOKANE, Wash -- December 6, 2005 -- Mines Management, Inc. (AMEX:MGN) is pleased to report on the status of its operations and its interim financial results for the third quarter and the nine months ending September 30, 2005. Permitting and Environmental During the third quarter of 2005, we continued to advance the permitting process and optimization review for the Montanore project. As part of the Environmental Impact Statement (EIS) process, the public comment period for the Montanore Project closed in September 2005. The U.S. Forest Service (the "USFS") and the Montana Department of Environmental Quality (the "Montana DEQ") have compiled a list of comments and issues that will be incorporated into the EIS. Portions of the EIS have been completed in draft form by Denver based ERO Resources, the EIS Contractor, and are being reviewed by the USFS and Montana DEQ. Reports and technical data will continue to be developed and updated to address specific EIS issues identified by the federal and state agencies through the end of the fourth quarter. The 230kv power transmission line permit application was submitted during the second quarter of 2005, was reviewed by the USFS and Montana DEQ, and a decision is expected to be issued concurrently with the EIS. The Company has initiated field work and technical efforts focused on fisheries habitat evaluation, fisheries population, wildlife, vegetation, threatened and endangered species, visual assessments, and other key environmental elements. At the request of the Montana DEQ, the Company recently completed a water sampling program for the neighboring wilderness lakes to establish current lake and stream baseline conditions. This information was used to support a regional and local hydrologic report update for the project area. A Montana Discharge Elimination System draft application was submitted to the Montana DEQ for review. This permit is necessary to address water management for the Montanore project. The final application will be submitted pending final Montana DEQ comments. In the third quarter, the Company held consultation meetings with local tribal organizations, which included a site visit to Montanore. This is the first of several steps required in the permitting process. During August 2005, public scoping meetings were held in Libby and Trout Creek, Montana, and Bonners Ferry, Idaho. All comments were documented by the USFS and Montana DEQ and will be addressed in the final EIS. In the fourth quarter of 2005 the Company expects to submit a draft plan to city and county authorities, including an assessment of the anticipated tax revenue and economic benefits of the Montanore project which will define benefits to the local government entities. A meeting with local representatives is scheduled in early November at which input from local community leaders will be incorporated in the final Hard Rock Mine Impact Plan to be submitted to the Montana Hard Rock Impact Board in conjunction with the final EIS submission. Geology During the third quarter of 2005, MDA completed an interim draft review of the Montanore deposit and is expected to complete a formal review early in the fourth quarter of 2005. MDA will provide McIntosh Engineering ("McIntosh") data on mineralization to be included in the mine plan and recommendations for a definition drilling program for future stages of project development. Engineering McIntosh and Hatch Ltd. ("Hatch") continue work on project engineering, including optimization, trade-off, design revisions, and other key evaluations for the Montanore project. In the third quarter both companies advanced the engineering work beyond the trade-off study level, and preliminary design specifications/revisions review and are moving into the final phases of preliminary design details. Ventilation studies were completed that could improve mine ventilation costs and potential adit sizes. In addition, McIntosh is now entering the detailed mine planning phase for the entire deposit area covered by the MDA review. McIntosh is expected to complete their preliminary work early in the fourth quarter of 2005. Hatch also continues to evaluate surface facilities and mill processing and is expected to complete a combined McIntosh and Hatch pre-feasibility report by the end of the fourth quarter of 2005. During the fourth quarter of 2005, the Company will open preliminary discussions with smelters to test the market for Montanore concentrate. This information is vital to establishing best estimate smelting terms included in the engineering cost estimate report. We continue to work closely with both McIntosh and Hatch toward completing an optimized engineering report and cost estimate by the end of the fourth quarter of this year. Financial Report Mines Management, Inc. reported a net loss for the quarter ended September 30, 2005 of $1,179,540 or $0.11 per share versus a loss of $450,562 or $0.04 per share for the quarter ending September 30, 2004. The increase in net loss of $728,978 was primarily do to an increase in environmental, engineering, and permitting activity on the Montanore project resulting in costs of $530,410; costs related to fees and licenses of $154,243; administrative costs of $100,813; employee compensation of $100,714; and office rent and expense of $15,469, offset in part by a decrease in non-cash stock option expense of $144,908; other miscellaneous expenses of $1,843, and increased income of $25,920. For the nine months ended September 30, 2005, the Company had a net loss of $3.4 million or $0.31 per share compared to a net loss of $2.3 million or $0.23 per share for the nine months ended September 30, 2004. The increased loss for this period is attributable to the increased activity and expenses for the Montanore Project of $1,093,202. There were fewer options granted in the 2005 period than in the 2004 period, and there was no financing activity in the first three quarters of 2005 to offset 2004 fees. Administrative costs increased as a result of an investor relations program targeted at heightening the visibility of the Company's shares. Compensation increased as a result of hiring two additional employees, the Chief Financial Officer and the Vice President of Operations, in mid-year 2004 and hiring a Manager of Engineering in early June 2005. We also added additional office space in January 2005 to facilitate increased project and engineering demands in 2005. Year to date, net cash used was $2,080,606 attributable to the increased Montanore project activity in the permitting, engineering, and environmental areas. The Company anticipates spending approximately $1,000,000 in the fourth quarter of 2005 to finalize the pre-feasibility engineering and environmental planning of the Montanore Project. Funding through the end of 2005 will be from cash and investments on hand. Subsequent to the end of the quarter, on October 21, 2005, the Company completed a private placement for the $6.1 million made to certain accredited investors for 1,016,667 units. The units were priced at $6.00, and were comprised of one share of common stock and half a share purchase warrant, two of which entitle the holder to purchase an additional common share at $8.25. The warrants have a five year term. The company also filed an application to list its shares on the Toronto Stock Exchange. Looking forward During the first quarter of 2006, the Company anticipates completion of a pre-feasibility, as well as a Preliminary Environmental Impact Statement. The pre-feasibility study will be the result of the collaboration between the mining industry consultants reported earlier, and provide the Company with a better understanding of the potential costs to develop and operate the mine. The Company plans to initiate a final feasibility study during 2006. The Preliminary Environmental Impact Statement will include the results from the numerous environmental baseline studies conducted during the year, many of which were designed to provide updates to the work completed during the original permitting effort in 1993. Mines Management, Inc. is a U.S. mineral development company focused on the exploration and development of silver dominant deposits. The company's primary focus is the advancement of the Montanore Silver-Copper Project located in northwestern Montana near the town of Libby. This press release contains forward-looking statements regarding the Company, within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, including statements regarding the anticipated timing of the reports, applications, and plans related to the Montanore permitting process, anticipated completion of the pre-feasibility study, the Preliminary Environmental Impact Statement, and the final feasibility study for the Montanore Project, anticipated expenditures for the remainder of 2005 and the sources of funding for those expenditures. 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 economic and political events affecting supply of and demand for silver and copper, 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-KSB, as amended, for the year ended December 31, 2004. 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 Vice President, 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.