Mines Management, Inc. 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. La Estrella Project: the Estrella property 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. 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 2,000 m and up to 1,100 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.

Effective March 26, 2013, with the promotion of Douglas D. Dobbs, ceased to serve as the President of Mines Management, Inc. Glenn Dobbs continues to serve as a Director, Chairman of the Board of Directors and Chief Executive Officer and remains the company’s principal executive officer. Effective March 26, 2013 Douglas D. Dobbs, 46, was elected President by the Board of Directors. He served as the company’s Vice President of Business Development and Corporate Secretary from June 2005 until March 2011 and has served as Vice President of Corporate Finance and Development and Corporate Secretary since March 2011.  Mr. Dobbs has 19 years of experience in corporate management, strategic planning, investment banking, analysis and management and marketing.

On March 18, 2013, Mr. James H. Moore, Chief Financial Officer of Mines Management, Inc. passed away unexpectedly.  Mr. Moore served as the company’s principal financial officer and principal accounting officer. Effective March 18, 2013, Ms. Nicole Altenburg, the company’s Controller, has been appointed to serve as principal financial officer and principal accounting officer. The company plans to commence a search for a new chief financial officer. Ms. Altenburg, 49, has served as the Company’s Controller since she joined the Company on May 7, 2007.