SPOKANE, Wash -- February 5, 2004 -- Mines Management, Inc. (OTC Bulletin Board: MNMM) , announced today the completion of a $5 million private placement to certain institutional investors of 1,000,000 units of the Company's common stock, together with warrants to acquire additional shares of common stock. The units consist of one share of common at $5.00, and 1/4 of a share purchase warrant at an exercise price of $7.25. Term of the warrants is 5 years. Exercise of all warrants would yield additional cash proceeds to the Company of $1,812,500.

The Shemano Group, Inc, a San Francisco based investment banking group, introduced the investors to the company and acted as placement agent in the transaction. The shares of common stock have not been registered under the Securities Act of 1933 and may not be subsequently offered or sold by the investors absent registration or an applicable exemption from the registration requirements. The company has agreed to file a registration statement covering the resale of the securities issued in this transaction. Mines Management, Inc. is a U.S. based public mineral development company focused on the exploration and development of silver dominant deposits. The 2002 acquisition of the Montanore silver-copper project, containing 260,000,000 ounces of silver and 2 billion pounds of copper, places the Company in the top tier of silver companies in the world.

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
     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