Mines Management, Inc.

October 21, 2005 17:26 ET

Mines Management Completes $6.1 Million Financing

SPOKANE, Wash.--(CCNMatthews - Oct 21, 2005) -

Mines Management, Inc. (AMEX:MGN) is pleased to announce the completion of a $6.1 million private placement made to certain institutional investors for 1,016,667 units. The units were priced at $6.00, and are comprised of one share of common stock and half of a share purchase warrant entitling the holder to purchase additional common shares at $8.25. Exercise of all warrants, which have a term of 5 years, would yield additional cash proceeds to the Company of approximately $4.2 million.

The Shemano Group, Inc, a San Francisco-based investment banking firm, acted as placement agent in the transaction. The securities 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 common stock issued in this transaction and the common stock issuable on exercise of the warrants.

The Company plans to use proceeds from the transaction to further advance the Montanore Silver-Copper Project through the engineering, final feasibility and permitting processes, and for additional general working capital.

Mines Management, Inc. is a U.S.-based mineral company focused on the exploration and development of silver dominant deposits. The Company's primary focus is the Montanore Silver-Copper Project located in northwestern Montana.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act regarding the Company's anticipated use of proceeds from the private placement. 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 and technical studies, problems or delays in or objections to the permitting process, the proximity of the Project to the Cabinet Wilderness Area and other factors discussed in the Company's periodic filings with the Securities and Exchange Commission, including its annual report on Form 10-KSB, as amended, for the year ended December 31, 2004.

Further information about Mines Management, Inc. can be reviewed on the company's website at www.minesmanagement.com, or by contacting the company directly.

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