September 13, 2012 at 10:00 AM EDT
Mines Management's Initial Drilling at La Estrella Extends Gold and Silver Mineralized Zone

Mines Management's Initial Drilling at La Estrella Extends Gold and Silver Mineralized Zone

Spokane, WA US, September 13, 2012 /FSC/ - Mines Management, Inc. (MGT - TSX, MGN - NYSE)(the "Company"),is pleased to announce results from initial drilling activities at the La Estrella gold-silver project in central Peru, in which the Company can earn a 75% interest from Estrella Gold Corp. (TSX-V: "EST").

Eight new holes, totaling approximately 2,700 meters, were completed in August in a program designed to test the south-western extent of a large gold and silver mineralized zone, which remains open to the north, south, and west.  Seven of the eight holes intersected gold and silver mineralization exceeding 100 meters in thickness.

Previous drilling by predecessors on the property, totaling approximately 5,800 meters among 33 holes, intersected mineralization approximately 1,800 meters in length north to south by 300 meters wide east to west.  The mineralization defined a tabular, west dipping zone up to 200 meters thick outcropping to the east.  

The 2012 drilling program has extended the known mineralized zone by approximately 300 meters to the west over an extent of approximately 500 meters north to south.  

Glenn M. Dobbs, the Company's President and CEO, stated, "We are very encouraged by the initial drill results to see the potential for a large precious metals deposit at La Estrella.  The combination of substantial zone thicknesses along with zones of higher grade mineralization make this deposit potentially very attractive, and warrant additional exploration.  The initial success is reflective of thorough analysis of the historical data by our exploration team prior to preparing the drilling plan.  Preparations for the program came together smoothly and quickly, enabled by existing drilling permits for the program and the rapid mobilization by our contractors and assistance from our partners at Estrella Gold."

-***-

Following are highlights of the drilling program:



Table 1              Highlighted Interval
                    From      To      Length  Gold  Silver
                                              grade grade
Drillhole         (meters) (meters)  (meters) (gpt) (gpt)
DDH E-22   Unmineralized

DDH E-23   Total Depth: 239.6 meters
Total mineralized     84.4 197.2        112.8  0.41   21.4
  intercept
            Incl.    151.7 173.3         21.6  0.81   71.3
            Incl.    153.0 163.3         10.3  0.62  130.5
            Incl.    155.0 160.1          5.1  0.88  225.4

DDH E-24   Total Depth: 296.3 meters
Total mineralized    101.8 262.4        160.6  0.37   23.0
  intercept
            Incl.    225.4 245.4         20.0  0.50  111.1
            Incl.    234.4 244.4         10.0  0.40  160.7
            Incl.    234.4 239.4          5.0  0.57  244.8

DDH E-25   Total Depth: 370.5 meters
Total mineralized     75.0 276.4        201.4  0.35   12.9
  intercept
            Incl.    155.5 172.0         16.5  1.30    6.0
            Incl.    164.4 172.0          7.6  2.09    7.0
              And    252.7     272.7     20.0  0.42   36.8
            Incl.    261.7     271.7     10.0  0.35   53.1
            Incl.    263.7     268.7      5.0  0.38   86.6

DDH E-26   Total Depth: 323.2 meters
Total mineralized    141.5 256.4        114.9  0.37    6.4
  intercept
            Incl.    175.0 185.0         10.0  1.05    8.4

DDH E-27   Total Depth: 500.3 meters
Total mineralized    188.0 280.9         92.9  0.31    3.4
  intercept
            Incl.    246.0 261.3         15.3  0.81    5.1
            Incl.    246.0 253.0          7.0  1.11    6.6

DDH E-28   Total Depth: 500.3 meters
Total mineralized    161.5 297.0        135.5  0.39    6.9
  intercept
            Incl.    147.0 156.0         17.0  0.83    4.7
            Incl.    233.0 242.7          9.4  1.15    5.4

DDH E-29   Total Depth: 259.4 meters
                      93.8 119.9         26.1  0.04  157.5
              And    127.5 254.2        126.7  0.43    5.2
            Incl.    134.2 154.5         20.3  0.73    6.2
            Incl.    196.8 220.2         23.4  0.97    3.3

Note to Drillhole Table 1:1. Reported intervals were selected based upon general in situ economic value above $25.00 per tonne, metals prices were assumed at $1,000 gold and $20.00 silver.

-****-

The property contains a mid-Teriary volcanic-hosted, porphyry/epithermal gold-silver system with associated base-metal mineralization hosted within a north-south trending graben.  Geology of the Estrella gold-silver deposit is dominated by an andesitic volcanic complex into which a thick west-dipping sill of gold-bearing dacite has intruded.  The volcanic complex consists of an upper unit of andesitic volcanic and hydrothermal breccia from 50 meters to 150 meters thick overlying a 50 meter thick series of andesites ranging from vesicular to amygdaloidal flows with aphanitic to porphyritic textures.  The dacite is typically altered with widespread quartz-sericite-pyrite and commonly exhibits fine veinlets and fractures containing pyrite and/or gray sulfides (tetrahedrite, galena, sphalerite).  

In drilling to date, intercepts of mineralized dacite possess persistent and continuous gold-silver mineralization in which gold grades are variable from 0.15 ppm to >1ppm.   Trace to low-grade values of copper, lead, and zinc, reported in previous drilling programs, identify La Estrella as an intermediate sulfidation system, and the sill-like geometry of mineralized dacite makes it unusual among Peruvian precious metals deposits.  The dacite and overlying volcanic complex have been cut and mineralized by north to north-east trending silver-dominant veins and mineralized structures, some of which control the intrusion of late porphyritic dikes with grades up to 0.86 g/t gold and 204 g/t silver.  These crosscutting structures hosted mineralization mined at the historic Esperanza underground silver-copper mine, which was active from the 1950's to the 1970's, and represent additional targets for future exploration efforts.

Next Steps

The Company performed sufficient activities and expenditures to complete its earn-in obligations for the year and is pleased that results warrant additional exploration.   Analysis, interpretation, and modeling of these results is ongoing and will form the basis for future activities.   Based upon results of the drilling, the Company intends to plan an expansion of exploration activities, which will primarily seek to (1) delineate the extent of La Estrella mineralization, (2) define the orientation and extent of high grade silver veins and structures, (3) and define a resource through additional drilling, metallurgical and geophysical studies.  

La Estrella Project

The La Estrella property ("La Estrella") contains approximately 2,500 hectares of land within the Central Peru polymetallic belt, located 130 km south of Huancayo in the Department of Huancavelica, a region with a history of silver mining dating to the 1500's. The Project is in an area of established infrastructure, with roads and electricity, and lies within 30 km of Minera Buenaventura's historic Julcani Silver Mine which began operation in 1955.

Mines Management, Inc., has an option to earn 75% of the project by conducting activities in accordance with the terms of the agreement detailed in the April 10, 2012, press release, and is the operator.   Additional details of the agreement and information are available on the Company's website at www.minesmanagement.com.  

QA/QC:  Drill hole samples were collected in 1-2 meter intervals in accordance with accepted industry standards and procedures. The samples were submitted to the ALS Chemex Labs (ISO 9001:2000 accredited) in Lima, Peru for analysis. Gold was analyzed by fire assay with an AAS finish, and silver analyses were determined with four-acid digestion and ICP AES/AAS techniques. The Company conducts routine QA/QC analysis on all assay results, including the systematic utilization of certified reference materials, blanks and field duplicates.

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: http://www.minesmanagement.com

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 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:

Douglas Dobbs, Vice President Corporate Development & Investor Relations
Mines Management, Inc.
905 West Riverside Ave - Suite 311
Spokane, WA 99201
Phone:  509-838-6050
Fax:    509-838-0486
Email:  info@minesmanagement.com
Web:    http://www.minesmanagement.com

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