Natural Resource Partners L.P.

SMH Capital Investor Growth Conference

New York, NY

November 8-9, 2007

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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 2006 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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NRP – A Lower Risk Proxy for the Coal Industry

• Landholding company

– Lease reserves to coal mining companies

– Receive royalty on production

• 2.1 billion tons of coal reserves

• 69 lessees produce approximately 5% of the US production from our 189 leases

• Three major coal producing regions in eleven states

• 2007 estimated production: 54 million tons to 61 million tons (metallurgical – 22% steam – 78%)

• 2007 estimated total revenues - $205 million to $224 million

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Diverse Portfolio of PropertiesCoal Reserves

• 2.1 billion tons at 12/31/06• 24% Met / 76% Steam• 60% Low Sulfur / 36% Compliance

States in which NRP has Aggregates

Coal Producing Basins in U.S.

States in which NRP has Coal Reserves

Aggregate Reserves

• 70 million tons

States in which NRP has both Coal Reserves and Coal Handling Facilities

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Performance

• Royalty structure supports stable

revenues

• Diversified sources of royalty

revenues

– Coal royalty

– Coal Infrastructure

– Aggregates

– Oil and Gas and Timber

royalties

• Increased distributions 17

consecutive quarters

Total Revenues

Distributable Cash Flow

30% CAGR30% CAGR

24% CAGR

24% CAGR

6

Active Acquisition History

Over the last five years

• Completed 29 acquisitions totaling ~$1.1 billion

• Diversified our portfolio of properties and lessees

• Established two new growth platforms

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Three Platforms for Growth

% Revenues

2006 2007E

1% ~6%

% Revenues

2006 2007E

87% ~79%

% Revenues

2006 2007E

-- ~3%

Coal Royalties

Coal Infrastructure

fees

Aggregates

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Coal Facts Coal Facts

and the and the

Global Coal MarketsGlobal Coal Markets

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Coal – America’s Most Abundant Energy Source

• U.S. Fossil Energy Reserves on a BTU Basis

– Coal 94%

– Oil 3%

– Natural Gas 3%

• U. S. estimated recoverable reserves are approximately 270 billion tons

• U.S. production in 2006 was 1.2 billion tons

– 96% consumed in U.S.

– 4% exported

• Based on current consumption, the U.S. has over a 225 year reserve life

• U.S. consumption of coal

– 92% for electricity generation

– 7% for making steel and industrial use

– 1% residential

Source: EIA

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Electricity Generation in the U.S.

• Fuel sources for electricity generation

– Coal 49%

– Nuclear 20%

– Natural Gas 19%

– Hydro 7%

– Other 5%

• Net Generation is 1.4 % higher YTD through July than in the

same period last year

– Coal up 1.5%

– Nuclear up 1.6 percent

– Natural Gas up 6.1 percent

– Hydro down 13.8 percent

Source: EIA

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Relative Electricity Costs in the U.S.

0%10%20%30%40%50%60%70%80%90%

100%

$0.05 $0.07 $0.09 $0.11 $0.13 $0.15 $0.17 $0.19

Cost per KWH

% o

f E

lect

rici

ty f

rom

Co

al

Alabama Alaska Arizona Arkansas California Colorado

Connecticut Delaw are Florida Georgia Haw aii Idaho

Illinois Indiana Iow a Kansas Kentucky Louisiana

Maine Maryland Massachusetts Michigan Minnesota Mississippi

Missouri Montana Nebraska Nevada New Hampshire New Jersey

New Mexico New York North Carolina North Dakota Ohio Oklahoma

Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee

Texas Utah Vermont Virginia Washington West Virginia

Wisconsin Wyoming

Source: EIA

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Global Coal Consumption – Growth last five years

0

200

400

600

800

1000

1200

1400

1600

1800

North

America

S. & Cent.

America

Europe &

Euroasia

Middle

East

Africa Asia

Pacifi c

2001

2006

Global Coal Consumption

has increased

•30% over the last five

years

•China ~ 75%

•India ~ 38%

•4.5% over the last year

•China grew 8.7%

•India grew 7.1%

Source: BP Statistical Review of World Energy June 2007

MM tonnes

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World Dynamics and the Domestic Coal Markets

• China, India, and Europe importing coal

– High freight rates give U.S. coal into Europe an advantage

– Weakness in the U.S. dollar

• U.S. exports increasing

– metallurgical coal

– steam coal

• Coal use is exceeding production

• Increasing exports boosting U.S. domestic coal prices

14

New Electrical Generation

• Coal

– 21 domestic coal plants are currently under construction

– Completions scheduled between 2008 and 2010

– Over 12,000 Megawatts of capacity

– New baseload projects

• Nuclear

– 1 new nuclear plant has been announced

• Hydro

– None – in fact drought conditions have caused decreases in generation

• Wind

– Not large enough to make a significant difference

Source: Platts, Company announcements

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Long Term Outlook for the Coal Markets

• New coal demand will be generated by:

– New coal-fired power plants being planned

– New coal uses

• coal gasification

• coal to liquids

• EIA expects total electricity sales to increase by 50% by 2030

• EIA expects coal fueled electricity to gain additional market

share over the next 25 years growing to approximately 57% by

2030 from 49% today

• New demand for higher sulfur coal due to the large number of

scrubbers being added to exiting power plants

Source: EIA – Energy Information Agency