Natural Resource Partners L.P. Tug Valley Mining Institute Williamson, WV October 19, 2006

2 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.

3 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

4 NRP Profile Reserves (12/31/2005): Annual Production : Number of Leases (6/30/2006): Number of Lessees (6/30/2006): ~2.0 billion tons 53.6 million tons 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.

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

6 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% CAGR 42% CAGR

7 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

8 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

9  Increased distributions 14 out of 15 quarters since IPO, 66% overall Distributions 66% Distribution Increase (1) ____________________ (1)The initial distribution of $ is equivalent to a full quarter minimum distribution of $ 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, Increased Distributions (2)

10 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 $ mm $ mm $ 10.0 mm 36% 5.2%

11 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

12 Characteristics Of An MLP Transaction

13 Qualifying Income for Master Limited Partnerships Natural Resource Based– Naturally Occurring  Coal  Aggregates  Timber  Oil and Gas  Other Minerals

14 Qualifying Income for MLP’s Natural Resource Activity  Exploration  Development  Mining  Production  Processing  Refining  Marketing  Storage  Transportation  Pipeline  Other

15 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

16 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

17 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

18 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

19 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