Mines Management, Inc.

January 04, 2005 17:04 ET

Mines Management Files Permit Application to Develop the Montanore Silver-Copper Project


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: MINES MANAGEMENT, INC.

AMEX SYMBOL: MGN

JANUARY 4, 2005 - 17:04 ET

Mines Management Files Permit Application to Develop
the Montanore Silver-Copper Project

SPOKANE, Wash.--(CCNMatthews - Jan 4, 2005) -

Mines Management Inc. (AMEX:MGN) is pleased to announce it has formally
submitted its application for re-permitting and development of the
Company's Montanore Silver-Copper project in western Montana.

The application's 13 volumes were delivered to the U.S. Forest Service
in Libby, and the Montana Department of Environmental Quality in Helena,
Montana.

The application is largely an amendment of that submitted by the
previous operator and approved in 1993, and includes updates as well as
new data developed subsequently.

Following a brief period of review and comment by the permitting
agencies, the process for re-permitting the Montanore Project will
follow a multiple-step process including:

a) Public scoping presentation and comment period,

b) National Environmental Policy Act (NEPA) and Montana Environmental
Policy Act (MEPA) process,

c) Issuance of a Draft Environmental Impact Statement (DEIS),

d) Public comment period,

e) Issuance of Final Environmental Impact Statement (FEIS) and Record of
Decision (ROD).

The Company's President and Chief Executive Officer, Glenn M. Dobbs,
said of the application, "We have worked diligently to prepare an
application that addresses all issues related to development and
operation of Montanore. We believe our plan will result in building and
operation of a mine that will become the standard by which underground
mining will be conducted well into the 21st century. The Company has
been gratified with the reception we have received from the local
community and its encouragement to re-permit Montanore."

The Montanore was fully permitted as recently as spring, 2002, at which
time the previous owner, Noranda Minerals (NYSE:NRD), made the decision
to withdraw from its operations in the United States.

Submission of the application formally initiates the re-permitting
process, which has been estimated to be completed within a period of
approximately 15-20 months.

The Montanore Silver-Copper Project is a world-class mining project
expected to bring significant employment and resources to the community
of Libby, Lincoln County, and the state of Montana. If in production
today, the mine would employ more than 200 people with an average annual
payroll of more than $10 million in addition to the ancillary benefits
of added capital purchases and supplies exceeding $200 million, and
would have a positive impact on a local community with high
unemployment.

This release contains certain forward-looking statements within the
meaning of the Federal Securities Laws. Such statements are based on
assumptions that the Company believes are reasonable but which are
subject to a wide range of uncertainties and business risks. Factors
that could cause actual results to differ from those anticipated are
discussed in the Company's periodic filings with the Securities and
Exchange Commission, including its annual report on Form 10-KSB for the
year ended December 31, 2003.

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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