Mines Management Files Preliminary Prospectus Supplement to Raise Gross Proceeds of US$30 Million for Advanced Exploration and Underground Drilling Program at Montanore Silver-Copper Project

    SPOKANE, WASH., March 27 /CNW/ - Mines Management, Inc. (AMEX:  MGN)
(TSX:MGT) is pleased to announce that it has filed a preliminary prospectus
supplement with the United States Securities and Exchange Commission and with
certain regulatory authorities in Canada, relating to its proposed US$30
million public offering of units. Each unit in the proposed offering will be
comprised of one share of common stock and one-half of one common stock
purchase warrant, with each full warrant being exercisable to purchase one
share of common stock. The proposed offering will be underwritten by a
syndicate led by TD Securities Inc, and including Blackmont Capital Inc.,
Salman Partners Inc., Sprott Securities Inc. and Raymond James Ltd.

    The terms of the proposed offering, including the number of units to be
offered and the price for the offering will be determined at the time of
pricing. The units are being offered in the United States and each of the
provinces of Canada, other than Quebec.

    Management of the Company may participate in this offering.

    The net proceeds of the offering will be used to fund a portion of the
cost of a two year advanced exploration and underground drilling program at
the Company's Montanore Silver-Copper Project in Montana and for general
corporate and working capital purposes.

    The underwriters will be granted an option to purchase up to an
additional 15% of the number of Units sold to cover over-allotments, if any.
All figures are in U.S. dollars unless otherwise indicated.

    This news release does not constitute an offer to sell or a solicitation
of an offer to buy the securities described herein in any jurisdiction. The
offering may be made in the United States only by means of a prospectus and
the related prospectus supplement, copies of which may be obtained from TD
Securities, 31 West 52nd Street, New York, NY 10019 (Tel: 212-827-7879) and in
Canada only by means of a prospectus and the related prospectus supplement, a
copy of which may be obtained from TD Securities Inc., Ernst & Young Tower 222
Bay Street, 7th Floor, Toronto, ON M5K 1A2 (Tel: 416-982-2059).

    Mines Management, Inc. is a U.S.-based mineral company focused on the
exploration and acquisition of precious and base metals mineral deposits. The
company's primary focus is on the advancement of the Montanore Silver-Copper
Project located in northwestern Montana.

    This press release contains forward-looking statements regarding the
Company within the meaning of the Private Securities Litigation Reform Act of
1995, Section 27A of the Securities Act and Section 21E of the Exchange Act.
Investors are cautioned that forward-looking statements are inherently
uncertain and involve risks and uncertainties that could cause actual results
to differ materially. Such statements include comments regarding the terms of
a proposed public offering and the use of proceeds of the offering. Factors
that could cause actual results to differ materially include economic and
political events affecting supply of and demand for silver and copper,
fluctuations in silver and copper prices, changes in U.S. and Canadian
securities markets, failure to receive regulatory approvals, negative results
of environmental or technical studies, rehabilitation and drilling program
problems or delays in or objections to the permitting process, the proximity
of the project to the Cabinet Wilderness Area and habitat for grizzly bear,
bull trout and lynx, failure or delay of third parties to provide services,
changes in the attitude of state and local officials toward the Montanore
Project and other factors discussed in the Company's periodic filings with the
Securities and Exchange Commission, including its annual report on Form 10-K,
as amended, for the year ended December 31, 2006. Additional information is
available in the Company's filings with the Securities and Exchange Commission
and at the Company's website at www.minesmanagement.com.

For further information:

For further information: Mines Management, Inc. Douglas Dobbs,
509-838-6050 Vice President, Corporate Development & Investor Relations fax:
509-838-0486 email: info@minesmanagement.com website: www.minesmanagement.com

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