News Release

Spokane, Washington – August 14, 2008 – MINES MANAGEMENT, INC. (AMEX: MGN, TSX: MGT) is pleased to announce results for the second quarter.

Advancing the Montanore Silver-Copper Project continues to be the Company’s main focus. In addition to its advanced exploration and delineation drilling program, the Company is continuing its repermitting efforts with federal and state agencies and its optimization review of the Project.

Overview

In the second quarter of 2008, the Company:

Received approval from the Montana State Department of Commerce of the proposed Hard Rock Mining Impact Plan for the Montanore Project.

Completed and redistributed the second draft of the Preliminary Draft Environmental Impact Statement to state and federal agencies for comment, which is the final stage of review prior to publication for public comment.

Selected Small Mine Development as contractor to manage activities related to advancement of the Libby adit and drill station development.

Maintained a strong cash and investment position with $27.5 million on hand at June 30, 2008.

The net cash expenditures for the six months ended June 30, 2008 were $0.9 million for the purchase of equipment and completion of the water treatment plant and other site infrastructure and $4.7 million for operating activities. The Company believes that it has sufficient working capital to complete the rehabilitation of the Libby adit and commencement of delineation drilling.

Advanced Exploration and Delineation Drilling Program

In the second quarter of 2008, we continued preparations for the rehabilitation of the Libby adit under existing State permits. Activities during the second quarter included continued commissioning of underground mining equipment and the initial phase of underground sump construction.

As part of the water treatment system, we advanced the ground rehabilitation in the sections of the adit required for access to underground sump locations, and ground support to provide safe access to the sump location. Excavation on the first two sumps was begun underground using the Tamrock face jumbo drill. Other work associated with the water treatment system included the installation of a 13.8 kva power line and load center underground and the addition of a pH control system on the raw water feed to the treatment plant.

We have also begun engineering work on the nitrate treatment plant, which will operate in conjunction with the existing water treatment plant. Cost estimates and preliminary designs are currently being evaluated.

Permitting and Environmental

In the second quarter of 2008, the U.S. Forest Service and Montana Department of Environmental Quality completed a second preliminary draft environmental impact statement (PDEIS). This version of the PDEIS addresses agency comments and edits from the first draft. The agencies will make a final review of this document before submitting the draft EIS to the public for review and comment. The Company anticipates the draft will be published for public review late in the third quarter or early in the fourth quarter of this year.

In addition, the Company continues to develop and review a number of monitoring and mitigation plans. These plans are focused on identifying ways to implement the Project to reduce negative impacts and document environmental conditions before, during, and after mine operations.

The agencies also continued to evaluate the different transmission line alternatives outlined in the PDEIS. The Company has provided requested technical documents and other information for the evaluation effort. The Company also continues to work with Flathead Electric Cooperative and Bonneville Power Administration (BPA) on the substation and electrical tie to the Noxon-Libby BPA transmission line.

The Company is continuing to work with the U.S. Forest Service to complete the environmental assessment (EA) for the dewatering and rehabilitation of the Libby adit. At that agency’s request, the Company has prepared a 3-dimensional hydrologic model to predict groundwater inflow to the exploration workings. The model was submitted to the Forest Service in early August of 2008.

Financial and Operating Results

Mines Management, Inc. 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 with the exception of equipment and infrastructure, which are capitalized. The Company 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 June 30, 2008

The Company reported a net loss for the quarter ended June 30, 2008 of $2.6 million, or $0.11 per share, compared to a net loss of $1.6 million, or $0.09 per share, for the quarter ended June 30, 2007. The $1.0 million increase in net loss in the second quarter of 2008 is attributable to increases in operating expenses of approximately $1.1 million over the second quarter of 2007, principally in depreciation, legal, accounting, consulting, compensation, environmental, and permitting expenses. These increases resulted from the addition of new employees, equipment purchases, and depreciation of capitalized costs of infrastructure to support the Company’s advanced exploration and delineation drilling program. Permitting and environmental costs increased by approximately $0.3 million during the second quarter of 2008 compared to the second quarter of 2007 because of increased activities relating to the EA and submission of the second draft PDEIS.

Six Months Ended June 30, 2008

The Company reported a net loss for the six months ended June 30, 2008 of $4.4 million, or $0.19 per share, versus a loss of $3.4 million or $0.22 per share for the six months ended June 30, 2007. The $1.0 million increase in net loss in 2008 is largely attributable to increased depreciation of $0.5 million, legal accounting and consulting fees of $0.2 million and compensation increases of $0.5 million, offset by an increase in interest income of $0.2 million in the first six months of 2008 over 2007. These increases were a result of a full six months of depreciation of the Montanore equipment and site infrastructure delivered and completed in late 2007 and early 2008. The compensation increase was due to the addition of new employees and stock based compensation for employees and directors for 2008.

Liquidity

During the six months ended June 30, 2008, the net cash used for operating activities was $4.7 million, which consisted largely of permitting and administrative expenses associated with increased activities at the Montanore Project site. The net cash used in investing activities during the same period was $0.9 million, for procurement of equipment and construction in progress. For the six months ended June 30, 2008 the net cash from financing activities was $0.8 million from the exercise of employee stock options less $0.2 million of legal fees associated with financing.

The Company anticipates spending approximately $9.6 million from cash and investments on hand during the final two quarters of 2008 for activities and equipment purchases related to the advanced exploration and delineation drilling program and repermitting efforts at the Montanore Project. The total capital and operating expenses for the year to date is approximately $5.0 million below the original forecast for the year because of delays in agency approval of the EA. The Company believes that it has sufficient working capital for rehabilitation and completion of the Libby adit and commencement of delineation drilling, which are estimated to cost an additional $19.0 million.

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 2008; potential completion of a bankable feasibility study; 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
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
Availability of experienced employees

Factors discussed under "Risk Factors" in our Form 10-K, for the period ending December 31, 2007

Contact:

Mines Management, Inc.
Douglas Dobbs, Vice President Corporate Development & Investor Relations
Phone: 509-838-6050

Email: info@minesmanagement.com



MINES MANAGEMENT ANNOUNCES SECOND QUARTER FINANCIAL AND OPERATING RESULTS Thursday, August 14, 2008
Press Release: 08-07
Spokane, Washington – August 14, 2008 – MINES MANAGEMENT, INC. (AMEX: MGN, TSX: MGT) is pleased to announce results for the second quarter. Advancing the Montanore Silver-Copper Project continues to be the Company’s main focus. In addition to its advanced exploration and delineation drilling program, the Company is continuing its repermitting efforts with federal and state agencies and its optimization review of the Project. Overview In the second quarter of 2008, the Company: Received approval from the Montana State Department of Commerce of the proposed Hard Rock Mining Impact Plan for the Montanore Project. Completed and redistributed the second draft of the Preliminary Draft Environmental Impact Statement to state and federal agencies for comment, which is the final stage of review prior to publication for public comment. Selected Small Mine Development as contractor to manage activities related to advancement of the Libby adit and drill station development. Maintained a strong cash and investment position with $27.5 million on hand at June 30, 2008. The net cash expenditures for the six months ended June 30, 2008 were $0.9 million for the purchase of equipment and completion of the water treatment plant and other site infrastructure and $4.7 million for operating activities. The Company believes that it has sufficient working capital to complete the rehabilitation of the Libby adit and commencement of delineation drilling. Advanced Exploration and Delineation Drilling Program In the second quarter of 2008, we continued preparations for the rehabilitation of the Libby adit under existing State permits. Activities during the second quarter included continued commissioning of underground mining equipment and the initial phase of underground sump construction. As part of the water treatment system, we advanced the ground rehabilitation in the sections of the adit required for access to underground sump locations, and ground support to provide safe access to the sump location. Excavation on the first two sumps was begun underground using the Tamrock face jumbo drill. Other work associated with the water treatment system included the installation of a 13.8 kva power line and load center underground and the addition of a pH control system on the raw water feed to the treatment plant. We have also begun engineering work on the nitrate treatment plant, which will operate in conjunction with the existing water treatment plant. Cost estimates and preliminary designs are currently being evaluated. Permitting and Environmental In the second quarter of 2008, the U.S. Forest Service and Montana Department of Environmental Quality completed a second preliminary draft environmental impact statement (PDEIS). This version of the PDEIS addresses agency comments and edits from the first draft. The agencies will make a final review of this document before submitting the draft EIS to the public for review and comment. The Company anticipates the draft will be published for public review late in the third quarter or early in the fourth quarter of this year. In addition, the Company continues to develop and review a number of monitoring and mitigation plans. These plans are focused on identifying ways to implement the Project to reduce negative impacts and document environmental conditions before, during, and after mine operations. The agencies also continued to evaluate the different transmission line alternatives outlined in the PDEIS. The Company has provided requested technical documents and other information for the evaluation effort. The Company also continues to work with Flathead Electric Cooperative and Bonneville Power Administration (BPA) on the substation and electrical tie to the Noxon-Libby BPA transmission line. The Company is continuing to work with the U.S. Forest Service to complete the environmental assessment (EA) for the dewatering and rehabilitation of the Libby adit. At that agency’s request, the Company has prepared a 3-dimensional hydrologic model to predict groundwater inflow to the exploration workings. The model was submitted to the Forest Service in early August of 2008. Financial and Operating Results Mines Management, Inc. 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 with the exception of equipment and infrastructure, which are capitalized. The Company 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 June 30, 2008 The Company reported a net loss for the quarter ended June 30, 2008 of $2.6 million, or $0.11 per share, compared to a net loss of $1.6 million, or $0.09 per share, for the quarter ended June 30, 2007. The $1.0 million increase in net loss in the second quarter of 2008 is attributable to increases in operating expenses of approximately $1.1 million over the second quarter of 2007, principally in depreciation, legal, accounting, consulting, compensation, environmental, and permitting expenses. These increases resulted from the addition of new employees, equipment purchases, and depreciation of capitalized costs of infrastructure to support the Company’s advanced exploration and delineation drilling program. Permitting and environmental costs increased by approximately $0.3 million during the second quarter of 2008 compared to the second quarter of 2007 because of increased activities relating to the EA and submission of the second draft PDEIS. Six Months Ended June 30, 2008 The Company reported a net loss for the six months ended June 30, 2008 of $4.4 million, or $0.19 per share, versus a loss of $3.4 million or $0.22 per share for the six months ended June 30, 2007. The $1.0 million increase in net loss in 2008 is largely attributable to increased depreciation of $0.5 million, legal accounting and consulting fees of $0.2 million and compensation increases of $0.5 million, offset by an increase in interest income of $0.2 million in the first six months of 2008 over 2007. These increases were a result of a full six months of depreciation of the Montanore equipment and site infrastructure delivered and completed in late 2007 and early 2008. The compensation increase was due to the addition of new employees and stock based compensation for employees and directors for 2008. Liquidity During the six months ended June 30, 2008, the net cash used for operating activities was $4.7 million, which consisted largely of permitting and administrative expenses associated with increased activities at the Montanore Project site. The net cash used in investing activities during the same period was $0.9 million, for procurement of equipment and construction in progress. For the six months ended June 30, 2008 the net cash from financing activities was $0.8 million from the exercise of employee stock options less $0.2 million of legal fees associated with financing. The Company anticipates spending approximately $9.6 million from cash and investments on hand during the final two quarters of 2008 for activities and equipment purchases related to the advanced exploration and delineation drilling program and repermitting efforts at the Montanore Project. The total capital and operating expenses for the year to date is approximately $5.0 million below the original forecast for the year because of delays in agency approval of the EA. The Company believes that it has sufficient working capital for rehabilitation and completion of the Libby adit and commencement of delineation drilling, which are estimated to cost an additional $19.0 million. 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 2008; potential completion of a bankable feasibility study; 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 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 Availability of experienced employees Factors discussed under "Risk Factors" in our Form 10-K, for the period ending December 31, 2007 Contact: Mines Management, Inc. Douglas Dobbs, Vice President Corporate Development & Investor Relations Phone: 509-838-6050 Email: info@minesmanagement.com Source: Mines Management, Inc.