Estrella Gold Corporation (CSRFF)

[chmcnfunds]

Mines Management Inc. Reports Positive Exploration Results at La Estrella; Elects to Proceed with Second Year

(Thomson Reuters ONE via COMTEX) -- Spokane, Washington - May 7, 2013 -

Mines Management, Inc. (nyse-amex:"MGN") (the "Company") has elected to extend the exploration program at its La Estrella gold-silver project in central Peru under the terms of its agreement with the owner, Estrella Gold Corp, whereby the Company may earn a 75% interest in the property. The Company has made notification to Estrella Gold Corp., along with an annual lease payment, and has submitted proposed modifications for the exploration permit to the Peruvian regulatory agencies governing the permits.

"We are gratified to extend our commitment to advance exploration on the Estrella project for a second year. Results from the 2012 drilling program and subsequent interpretation of new 3D-IP/Resistivity data indicate potential for further expansion of the mineralized zone, and we are excited to see what unfolds as we undertake the next phase of exploration," stated the Company's CEO, Glenn M. Dobbs."

2012 Exploration of La Estrella

In 2012, eight diamond drill holes totaling approximately 2,700 meters were completed, seven of which intercepted significant thicknesses of gold and silver mineralization (see News Release, Sept. 13, 2012). Highlights of the drill program include E-23 with 112.8 meters (m) @ 0.41 grams per tonne (gpt) gold (Au) and 21.4 gpt silver (Ag); E-24 with 160.6 m @ 0.37 gpt Au and 23.0 gpt Ag; and E-25 with 201.4 m @ 0.35 gpt Au and 12.9 gpt Ag. These intercepts expand the historically known area of mineralization toward greater depths on the west and southwest side of the project's 2012 area of interest.

Because a strong positive correlation between higher grade gold mineralization and moderate to high values of chargeability had previously been demonstrated on the Estrella Project, a 3-D Induced-Polarization/Resistivity survey by Val D'Or Geophysics Peru was contracted in December 2012 to February 2013 to provide indications of mineralized trends and directions useful for exploration. The survey identified a large, previously unknown area of anomalous chargeability extending north and northwest from the 2012 area of interest for a distance of approximately 1,400 meters. This new area, when combined with previously known areas of anomalous chargeability, forms a prospective zone over 2000 meters in N-S extent and up to 1100 meters in E-W extent. The Company expects that targets for the next phase of drilling will include sites across these newly-recognized chargeability trends. Other targets will include follow-up of structurally-controlled high grade silver intercepts as in E-29 with 26.1 m @ 0.04 gpt Au and 157 gpt Ag. All drillhole data is posted and available for review on our website at www.minesmanagement.com.

2013 Activities

Activities thus far in 2013 include the modification of exploration permits to encompass the expanded areas prospective for drilling, and metallurgical studies with completion expected in May, 2013. Activities planned for the remainder of the year will be conducted in accordance with the Company's current cash conservation activities.

La Estrella Project

The Estrella property ("La Estrella") contains approximately 2,500 hectares of land within the Central Peru Polymetallic Belt, and is 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 approximately 30 km from Minera Buenaventura's historic Julcani Silver Mine which began operation in 1955. Mines Management, Inc. conducts work on the project subject to its agreement to earn 75% of the project through $5 million in exploration activities and a preliminary economic assessment. (See NR April 10, 2012)

La Estrella Geology and Mineralization

La Estrella concessions cover a large area of gold-silver mineralization hosted by a thick west-dipping dacite sill beneath a sequence of andesitic volcanic rocks. Gold mineralization occurs as pyrite-associated disseminations in silicified and phylically-altered dacite; also as quartz-sulfide stockworks in brecciated or structurally-disrupted andesitic rocks. Higher-grade silver intervals (>100 gpt) occur with galena and a variety of sulfosalts in mineralized structures cutting the dacite sill and volcanic package, reflecting an event later than the more widespread gold-silver dacite-hosted mineralization. To date, historic and current sampling and drilling activities have identified a roughly tabular zone of mineralization generally conformable to the dacite sill over 1,500 meters in strike length, 300-500 meters in width, and 50-150 meters thick. As previously mentioned, geophysical indications of mineralization include this known area and extend across a strike length of 2000 m and up to 1100 meters width in the central portion of the deposit. The system remains open to the north, south, west, and at depth in the central, widest portion of the anomalous zone.

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 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 permitting process. Additionally, the company conducts exploration activities on the Estrella gold-silver project located in central Peru.

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 NI 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 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, 2012, as amended.

Contact:

President, Mines Management, Inc.

Phone: [phone]

Email: [e-mail]

Website: www.minesmanagement.com

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information contained therein.

Source: Mines Management Inc. via Thomson Reuters ONE

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