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Positive Preliminary Economic Assessment Completed For The Montanore Silver-Copper Project

Mines Management, Inc. (NYSE-Amex:MGN) (TSX:MGT) is pleased to announce the completion of a Preliminary Economic Assessment (“PEA”) for the Company’s wholly owned Montanore Silver-Copper Project located in the United States. Results of the PEA illustrate that the economics of the project would be robust in today's cost and metals price environment and represents a solid economic foundation upon which to build. An NI 43-101-compliant technical report will be filed on SEDAR within 45 days.

A mine plan developed by Mines Management, Inc. (“MMI”) was audited by Mine and Quarry Engineering Services, Inc. (“MQes”) of San Mateo, California. Cost estimates were developed by MQes. The mine plan is based on a Measured and Indicated Mineral Resource of 81.5 million short tons of material grading 2.04 ounces per short ton (“opt”) silver and 0.75% copper, and an Inferred Mineral Resource of 35.0 million short tons grading 1.85 opt silver and 0.71% copper at a cutoff grade of 1.0 opt silver, previously reported in an NI 43-101 Technical Report (October 2005) prepared by Mine Development Associates (“MDA”) of Reno, Nevada. Mines Management’s estimate of mineralized material reported pursuant to U.S. Securities and Exchange Commission rules in its annual report on Form 10-K for the year ended December 31, 2009, remain unchanged.

The PEA indicates a financially robust underground mine utilizing conventional grinding and flotation processing techniques at a nominal throughput of 12,500 short tons per day (“st/d”). At a 5% discount rate, a silver price of US$15.00 per ounce (“oz”) and a copper price of US$3.10 per pound (“lb”), the project’s pre-tax Net Present Value (“NPV”) is indicated to be US$485 million with an internal rate of return (“IRR”) of 17.4% on an unleveraged 100% equity basis.

Using metals prices as of November 17, 2010, of US$25.65/oz. silver and US$3.72/lb. copper, the project indicated a pre-tax NPV of US$1.323 Billion and IRR of 32.3%, at a 5% discount rate.

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