June 12, 2012 at 18:56 PM EDT
Mines Management Commences Drilling on La Estrella Gold-Silver Project

Mines Management Commences Drilling on La Estrella Gold-Silver Project

Spokane, WA US, June 12, 2012 /FSC/ - Mines Management, Inc.  (MGT - TSX, MGN - NYSE-Amex),  (the "Company") is pleased to announce the commencement of drilling at the La Estrella gold-silver project located in central Peru, in which the Company has an option to earn 75% from Estrella Gold Corp. (TSX-V: "EST"), as described in the press release dated April 10, 2012.

The goals of the initial program are to confirm continuity of mineralization on the southwest side of the deposit, to better define the extent of high grade mineralization at depth in that area, and to test a recently-identified geophysical target.  Surface exploration, including soil geochemistry, is also planned for selected areas adjacent to the principal area of mineralization.

The La Estrella property contains approximately 2,500 hectares of land in the Central Peru polymetallic belt, in the Department of Huancavelica, a region with a history of silver mining dating to the 1500's.  The Project area contains well-developed roads and electricity, and is located within 30 km of the Julcani Silver Mine which began operation in 1955. Previous drilling at La Estrella included 5,796 meters of core and RVC in 33 holes.  The drilling focused on a volcanic-hosted mineralized area approximately 1,800 long and 300 meters wide.  Mineralization was shown by drilling to continue to 200 meters below the surface and remains open at depth on the southwest side of the deposit.  Mineralized intervals averaging 133.5 meters wide are present in 18 holes.  The property is an advanced stage exploration project which contains a volcanic-hosted epithermal gold-silver system with associated base-metal mineralization.  Additional information regarding the La Estrella Gold-Silver Project is available at the Company's website: www.minesmanagement.com.

Michael G. Rasmussen, PhD, Vice President of Exploration for Mines Management, Inc., is a Qualified Person for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators, and has approved the technical information contained in this news release.

About Mines Management

Mines Management, Inc. is engaged in the business of acquiring and exploring, and if exploration is successful, developing mineral properties containing precious and base metals.  The Company's primary focus is on the advancement of the Montanore silver-copper project located in northwestern Montana.  The Montanore is an advanced stage exploration project containing a Canadian NI 43-101 compliant measured resource of 4.03 million tons of material grading 1.85 ounces per ton ("opt") silver and 0.74% copper, an indicated resource of 77.5 million tons grading 2.05 opt silver and 0.75% copper, and an inferred resource of 35.1 million tons grading 1.85 opt silver and 0.71% copper, and is currently undergoing the process to obtain permitting approval.  Additional information is available at Mines Management's website: www.minesmanagement.com.

Cautionary Note to U.S. Investors concerning estimates of Measured,
Indicated and Inferred Mineral Resources:
This press release uses the terms "Measured Mineral Resource", "Indicated Mineral Resource", and "Inferred Mineral Resource." We advise U.S. investors that while those terms are recognized and required by Canadian National Instrument 43-101, the Securities and Exchange Commission does not recognize them.  U.S. investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into mineral reserves.  Inferred Mineral Resources have a greater amount of uncertainty as to their existence and as to their economic and legal feasibility.  In accordance with Canadian rules, estimates of Inferred Mineral Resources cannot form the basis of feasibility or other economic studies.  U.S. investors are cautioned not to assume that part or all of the Inferred Mineral Resources exists, or is economically or legally mineable.  Disclosure of "contained ounces" in a Mineral Resource is permitted under Canadian regulations, however, the SEC normally only permits issuers to report mineralization that does not constitute 'reserves' by SEC standards as "in place" tonnage and grade without reference to unit measures.  Accordingly, the information contained in this press release may not be comparable to similar information made public by U.S. companies that are not subject to NI 43-101.

Statements Regarding Forward-Looking Information:  Some statements contained in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other applicable U.S. and Canadian securities laws.  Investors are cautioned that forward-looking statements are inherently uncertain and involve risks and uncertainties that could cause actual results to differ materially, including planned exploration activities and geologic studies at the La Estrella exploration property in Peru.  Actual results may differ materially from those presented.  Factors that could cause results to differ materially include delays in commencing or problems with exploration at La Estrella, unsatisfactory exploration results, changes in geologic interpretations, political unrest or delays in obtaining community agreements or permitting in Peru in connection with planned exploration activities, world economic conditions or fluctuations in silver and copper prices.  Mines Management, Inc. assumes no obligation to update this information.  There can be no assurance that future developments affecting Mines Management, Inc. will be those anticipated by management.  Please refer to the discussion of risk factors in the Company's Form 10-K for the year ended December 31, 2011, as amended.

FOR MORE INFORMATION:
Mines Management, Inc.
Phone:  509-838-6050
Douglas Dobbs, Vice President of Corporate Development
Email: info@minesmanagement.com

To view this press release as a webpage, please click on the following link: http://www.usetdas.com/pr/minesmanagement06122012.htm




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