Natural Resource Partners L.P.

Tug Valley Mining Institute

Williamson, WV

October 19, 2006

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Forward-Looking Statements

The statements made by representatives of Natural Resource Partners L.P. (“NRP”) during the course of this presentation that are not historical facts are forward-looking statements. Although NRP believes that the assumptions underlying these statements are reasonable, investors are cautioned that such forward-looking statements are inherently uncertain and necessarily involve risks that may affect NRP’s business prospects and performance, causing actual results to differ from those discussed during the presentation.

Such risks and uncertainties include, by way of example and not of limitation: general business and economic conditions; decreases in demand for coal; changes in our lessees’ operating conditions and costs; changes in the level of costs related to environmental protection and operational safety; unanticipated geologic problems; problems related to force majeure; potential labor relations problems; changes in the legislative or regulatory environment; and lessee production cuts.

These and other applicable risks and uncertainties have been described more fully in NRP’s 2005 Annual Report on Form 10-K. NRP undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information or future events.

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Overview of Natural Resource Partners

• Own and manage coal properties in the three major coal producing regions of the United States:

– Appalachia, Illinois Basin and Western US

– Eleven States

• Lease reserves to experienced mine operators under long-term leases in exchange for royalty payments

• Royalty payments based on percentage of sales price or fixed price, with periodic minimum payments

• Lessees provide coal to diverse group of utilities, steel companies and industrial users

• Small but growing percentage of income from throughput fees on coal preparation and handling facilities, wheelage and oil and gas royalties

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NRP Profile

Reserves (12/31/2005):

Annual Production - 2005:

Number of Leases (6/30/2006):

Number of Lessees (6/30/2006):

~2.0 billion tons

53.6 million tons

178

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Market Capitalization (at $51.25 per unit):

Distribution per Unit (3Q 2006):

$1.3 billion

$0.85 quarterly

$3.40 annualized

Senior Notes (6/30/2006):

Drawn on Revolver (6/30/2006):

$247 million

$10 million

Total Revolver Size:

Cash on Balance Sheet (6/30/2006):

$175-$300 million (1)

$53 million_______________________(1) As of 06/30/06 NRP had $165 million of $175 million capacity available

under its credit facility. NRP also retains the right to increase the size of the credit facility to $300 million without obtaining lender consents.

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Coal Producing Basins in U.S.

States in which NRP has Coal Reserves

Diverse Portfolio of Properties

Northern Powder River Basin

Reserves – 132 mm tons (7%)

Low Sulfur

Illinois Basin Reserves

62 mm tons (3%)

Medium and High Sulfur

Appalachia

Reserves – 1,835 mm tons (90%)

Low, Medium, High Sulfur

Note: Reserve information as of December 31, 2005

• 2.0 billion tons at 12/31/05• 23% Met / 77% Steam• 58% Low Sulfur / 35% Compliance

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Stable and Predictable Historical Performance

• Royalty structure supports

stable revenues

• Diversified sources of royalty

revenues

• Downside price protection

without limiting upside;

minimum royalty payments of

$29.6 mm at 12/31/05

• Transportation / customer

diversity

Coal Production

Coal Royalty Revenues

21% CAGR21% CAGR

42% CAGR

42% CAGR

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Active Acquisition History

Over the last four years

• Completed 20 acquisitions totaling ~$500 million

– Acquired ~ 1.1 billion tons of coal reserves

• Double the reserves since IPO

– Acquired overrides on an additional ~ 120 million tons

– Acquired 3 coal preparation, handling and rail load-out facilities

• Diversified our portfolio of properties and lessees

– Tripled the number of leases

– More than doubled the number of lessees

– Increased our position in Illinois Basin

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Sedgman Agreement on Coal Handling Facilities

• NRP entered into agreement with Sedgman USA in Aug 2006 to jointly

identify coal preparation, handling and rail load-out facilities in the

U.S.

• Sedgman will design, build and operate the facilities

• NRP will own and lease the facilities to Sedgman for a throughput fee– Fee based on the higher of percentage of the gross selling price or a fixed fee per ton

– NRP will receive monthly minimums

– Analogous to NRP’s royalty arrangement for coal reserves

– NRP – NO maintenance capital expenditures or operating expenses

• Signed agreements to purchase the first two facilities – Coal Mountain and Red Fox

– Total purchase price for facilities - $23.8 million

– Paid $22.4 million to date

– Anticipate annual revenues of approximately $4.5 million

• Stable income stream to support distributions

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Increased distributions 14 out of 15 quarters since IPO, 66% overall

DistributionsDistributions

$1.50

$1.75

$2.00

$2.25

$2.50

$2.75

$3.00

$3.25

$3.50

66% Distribution Increase

(1)

____________________(1) The initial distribution of $0.4234 is equivalent to a full quarter minimum distribution of $0.5125 prorated for

the period from October 17, 2002, the date of closing of the initial public offering of common units, through December 31, 2002, the end of the quarter.

(2) The last distribution for the 3Q 06 of $0.85 per unit has been declared and will be paid on November 14, 2006 to unitholders of record on November 1, 2006.

Increased Distributions

(2)

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Strong Balance Sheet – 6/30/06

Cash

Total assets

Fixed rate debt

Floating rate debt

Debt / Total capitalization

Weighted average interest rate on Senior Notes (Fixed)

$ 52.6 mm

$ 723.8 mm

$ 247.0 mm

$ 10.0 mm

36%

5.2%

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Attractive Tax Structure Due to Coal

• Distributions are treated as return of capital

• Unitholders are taxed on the income generated by the

partnership

• Coal royalty revenues are taxed as long term capital gains

• Approximately 60% of the revenue generated is sheltered by

depletion deductions

• Depletion does not have to be recaptured upon sale of the

units

• If units are held for more than one year, receive capital gains

treatment on the sale

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Characteristics Of An MLP Transaction

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Qualifying Income for Master Limited Partnerships

Natural Resource Based– Naturally Occurring

Coal

Aggregates

Timber

Oil and Gas

Other Minerals

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Qualifying Income for MLP’s

Natural Resource Activity

Exploration

Development

Mining

Production

Processing

Refining

Marketing

Storage

Transportation

Pipeline

Other

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Qualifying Income for MLP’s

Other Qualifying Income

Real Property Income

Rents from real property

Unrelated lessee

Pipeline

Gain from sale of assets generating qualifying income

Interest

Dividends

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MLP Financing Characteristics

Advantages

No repayment obligation

Flexible

Management retains 100%

control

Product/Price denominated

Risk sharing

Project specific – not

company

Lower payments per annum

Non-dilutive to

owners/shareholders

Disadvantages

Long lived cost

Upside subject to royalty

Component of cash cost

calculation

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Financing Vehicle Characteristics - Equity

Advantages

No repayment obligations

Not operations based

Enhances liquidity

Disadvantages

Permanence

Possible loss of control

Dilution

Not always available

Involves all company

assets

Cost

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Financing Vehicle Characteristics - Debt

Advantages

Finite life

Non-dilutive to

owners/shareholders

Disadvantages

Restrictive covenants

Conflicts

Only late stage projects

$ denominated

Structure of payments

Preferential claims

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MLP - Royalty Financing - Summary

More closely aligns interests

Provides alternative/additional source of funds

Shifts some risk to financing party

Combines advantages of debt and equity

Less expensive than equity and more expensive than debt

Natural Resource Partners L.P.

Tug Valley Mining Institute

Williamson, WV

October 19, 2006