Mines Management Inc.: Mines Management Inc. Corrects the Record Regarding Montanore Litigation

  Mines Management Inc.: Mines Management Inc. Corrects the Record Regarding                              Montanore Litigation  Spokane, Washington - June 18, 2014 -- MINES MANAGEMENT, INC, (NYSE-MKT:  MGN,  TSX: MGT)  ("MMI" or  the "Company"),  is issuing  this statement  to  provide  accurate information to the public  and shareholders of the Company  regarding  recent federal and state court  rulings in litigation involving the  Company's  Montanore project, and to correct recent incorrect and misleading reports  and  statements in various publications by third parties.  As previously reported, the Company has  been involved in disputes in  Montana  state and federal  courts regarding  unpatented mineral  claims located  above  portions of  the  Libby Adit  which  provides underground  access  toward  the  Company's Montanore  deposit, and  overlapping certain  of Mines  Management's  patented claims, mill sites and tunnel sites.  MMI received favorable rulings earlier this year in both the state and federal lawsuits pertaining to the Montanore project. In January, the Montana Supreme Court reversed a March 2013 state district court ruling on the validity of the unpatented mineral claims, now owned by Optima Inc., by vacating an injunctive order due, in part, to faulty reasoning and lack of evidence.  In addition, based upon  a June 2013  lawsuit filed by  the Company, the  U.S.  District Court  in Missoula  (1) granted  in March  2014, MMI's  motion for  a  preliminary condemnation  order giving  MMI an  easement through  the  alleged  unpatented mineral claims controlled by  Optima; and (2) issued an  injunction  to prevent interference with MMI's use of the Libby Creek adit.  The federal court ruling confirms the  Company's ongoing unimpeded use of  the  Libby Adit, which we have continued to maintain in accordance with our current operating permit.  The subject claims  were acquired  from previous  holders by  Optima, Inc.,  a  Montana corporation formed in 2013. According  to filings with the State  of  Montana, Optima's board of directors includes Mr. Frank Duval and his daughter Heather Duval Ennis,  former Montana Governor  Brian Schweitzer who  currently  serves as Board Chairman of Stillwater Mining (NYSE-MKT: SWC), Vancouver stock trader and  V.P. with  Haywood Securities,  Mr. David  Elliott, and  a  former  official with the U.S. Forest Service minerals division, Mr. Bruce Ramsey.  Mr. Glenn Dobbs, the Company's chairman and CEO, stated, "Mines Management  is  vigorously responding to Optima on all fronts, including in the courts. Among other things, the Company has filed a motion to strike Optima's demand for $10 million as compensation for  MMI's successful condemnation of  a right of  way  through Optima's  asserted claims.  We believe  that Optima's  claim for  $10  million is frivolous  because it attempts  to establish value  based upon  the  wrong measure, not in accordance with the law, and we are confident our  legal  initiatives will continue to be successful."  Mines Management owns 100%  of a large  silver/copper deposit in  northwestern  Montana. According  to public  filings, the  Montanore project  contains  at  least 81.5 million tons  of mineralized material with  average grades of  2.04  ounces  silver  per  ton  and  0.75%  copper.  A  2011  preliminary  economic  assessment listed the pre-tax  net present value of  the project at more  than  $400 million.  Libby, Montana, is a small town of approximately 3,000 people and about 15,000 people in the immediate county. The area  has been hit hard by the  recession  and loss of its logging industry  to environmental activism and, as a  result,  has an unemployment rate of about 15%. A mine at the Montanore project  could  create 350 new direct jobs in this small community.  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, which deposit contains mineralized material of approximately 81.5 million tons with average grades of 2.04 ounces silver per ton and 0.74% copper.  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 comments regarding the pre-tax net present value of the Montanore project, quantities and average grades of mineralized material, and expectations regarding the future favorable results of litigation. Actual results may differ materially from those presented. Factors that could cause results to differ materially include delays in and increases in the cost of permitting at Montanore, changes since 2011 in the parameters used to calculate the pre-tax net present value of the Montanore project including, for example, reductions in silver and copper prices and increases in costs of mine construction, changes in interpretation of geological information, the results of delineation drilling and feasibility studies; future results of litigation that are less favorable to the Company than it currently anticipates; fluctuations in silver, gold and copper prices and changes in world economic conditions. 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, 2013, as amended.  FOR MORE INFORMATION: Douglas D. Dobbs President, Mines Management, Inc. 905 West Riverside Avenue - Suite 311 Spokane, WA 99201 Phone: 509-838-6050 Fax: 509-838-0486 Email: info@minesmanagement.com Web: www.minesmanagement.com  ------------------------------------------------------------------------------  This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients. The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Mines Management Inc. via Globenewswire HUG#1791883  
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