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.