SPOKANE, WA. ---- April 28, 2006 ---- MINES MANAGEMENT INC. (Amex: MGN, TSX: MGT) is pleased to announce financial results for the fiscal year ending December 31, 2005, and updates to the company’s operations.

Financial and Operating Results

Mines Management, Inc. reported a net loss for the year ended December 31, 2005 of $5.2 million ($0.45 per share) versus a loss of $2.5 million ($0.26 per share) and $1.3 million ($0.18 per share) for the years ending December 31, 2004 and 2003, respectively. The increases in net loss between 2005 and 2004 of $2.7 million, and between 2004 and 2003 of $1.2 million, were primarily due to increased expenditures in the following major areas:

	Expenditures (millions)	2005	2004	2003
	Montanore Project Expense	$2.2	$0.2	-
	Administrative Expense	$2.2	$1.0	$0.7
	Non Cash Stock Option Expense	$1.0	$1.4	$0.6
	Interest Income	($0.2)	($0.1)	-

The area of additional spending for 2005 over 2004 was the increased activity on the Montanore Project, primarily as a result of payments to consultants for permitting activities, collecting additional environmental baseline data, resource assessment, and mine engineering and optimization studies. Montanore project expense includes exploration, fees, filing and licenses, environmental, engineering and permitting expense. Administrative expense, which includes general overhead and office expense, legal, accounting, compensation, rent, taxes, and investor relations expense, doubled in 2005 over 2004 as we commenced an investor relations program targeted at increasing liquidity, hired additional employees for the Montanore Project, and leased additional office space in January 2005 to accommodate our expanded staff. Stock option expense, which includes stock options granted to officers, employees and consultants, decreased from 2004 to 2005 due to fewer options being granted and no previously issued options vesting in 2005.

The increased expenses in 2004 from 2003 were largely attributable to the start of our initial work on the Montanore Project. The increase in administrative expense reflects primarily the addition of two executives, a full year of compensation for a new President and Chief Executive Officer, and a full year of severance payments to the previous President and Chief Executive Officer. The increase in stock option expense was due to the granting of options to executives hired in 2004 and the vesting of options granted in 2003 to the Company’s President and Chief Executive Officer, and issuance of employee and director non cash stock options.

Liquidity

At December 31, 2005, our aggregate cash, short term investments, and long term investments totaled $8.9 million compared to $6.5 million at December 31, 2004. In 2005, we raised $6.1 million gross proceeds in a private placement and $0.6 million from the exercise of warrants and exercise of stock options. The net cash used for operating activities was $4.2 million, which consisted primarily of permitting, environmental and engineering expenses for the Montanore project and administrative expenses. The net increase in cash and cash equivalents for the year ending December 31, 2005 was $2.2 million.

The Company anticipates spending approximately $4.0 million in 2006 focused primarily on ongoing permitting and engineering activities for the Montanore Project. The Company has sufficient cash and cash equivalents to fund its planned 2006 expenditures.

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 expenditures in 2006. 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 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, as amended, for the year ended December 31, 2005.

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.

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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