Natural Resource Partners L.P.

Herold’s

Pacesetters Energy Conference

September 2005

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 2004 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.

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

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

Executing on Strategy

Acquire / Diversify Reserves

Diversify Operator Base

Explore New Opportunities

Maximize Royalty Revenues

• Pursue acquisition / diversification of reserves• Seek opportunities in all U.S. coal regions

• Identify additional operators• Continue to diversify via acquisitions

• Partner with lessees • Explore new coal & other reserves

• Work with lessees to maximize production• Monitor lessees’ mining plans

StrategyStrategy CommentComment

Evolution Since Natural Resource Partners’ IPO

Reserves:

Annual Production: (2)

Number of Leases:

Number of Lessees:

~1.2 billion tons

30.5 million tons

62

31

~1.8 billion tons (1)

48.4 million tons

160 (3)

60 (3)

Market Capitalization:

Distribution Per Unit:

$454 million

$0.5125 quarterly

$2.05 annualized

$1,552 million (4)

$0.7125 quarterly

$2.85 annualized

Senior Notes: $0 million $206 million

Total Revolver Size:

Cash on Hand

$100 million

$1 million

$175-$300 million (5)

$51 million(3)_______________________(1) As of 12/31/2004.(2) For 2002 and 2004, respectively.(3) As of 6/30/2005.(4) As of 9/15/2005. (5) Following the issuance of senior notes on 7/19/2005, NRP has the full $175 million of 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.

IPO (10/11/2002)IPO (10/11/2002) CurrentCurrent

Coal Producing Basins in U.S.

States in which NRP has Coal Reserves

Diverse Portfolio of Properties

Northern Powder River Basin

Reserves – 153 mm tons (9%)

Low Sulfur

Illinois Basin

Reserves – 20 mm tons (1%)

Medium and High Sulfur

Appalachia

Reserves – 1,596 mm tons (90%)

Low, Medium, High Sulfur

Note: Reserve information as of December 31, 2004

1.8 billion tons at 12/31/04 (met and steam)

69% low sulfur / 37% compliance

Diverse, Well-Established Lessee Base

• 41.0% of royalty revenues come from top 10 coal producers

• 160 leases with 60 lessees at 6/30/05

• 82.0% of royalty revenues from NRP’s top 10 lessees

• Typical lease 5-10 years with option to extend

• Lessees responsible for all sales, processing and transporting

______________________Note: NRP’s lessees denoted in bold and with shading.Source: National Mining Association Coal Producer Survey 2004.(1) Revenue reported for the period from April 23, 2004 (date of incorporation) to December 31, 2004.

Top Ten U.S. Coal Producers ($ and tons in millions)

FY 2004 FY 2004 Percent of U.S.Company Revenues Production Total Production

Peabody Energy 3,632 193.3 17.4%

Arch Coal 2,077 148.6 13.4%

Kennecott Energy & Coal NA 129.7 11.7%

CONSOL Energy 2,777 67.7 6.1%

Foundation Coal (1) 445 61.4 5.5%

Massey Energy 1,767 42.0 3.8%

North American Coal 111 34.3 3.1%

Kiewit Mining Group 87 30.5 2.7%

Westmoreland Coal 333 29.0 2.6%

TXU Mining NA 24.0 2.2%

Stable and Predictable Historical PerformanceCoal Production

• Royalty structure supports stable revenues

• Diversified sources of royalty revenues

• Downside price protection without limiting upside; minimum royalty payments of $25.4 million at 6/30/05

• Transportation / customer diversity

Coal Royalty Revenues

18% CAGR18% CAGR

31% CAGR31% CAGR

Capital Expenditures

Labor

Employee Benefits

Property Taxes

Transportation / Processing

No Direct Operating Costs or Risks

Operating CostOperating Cost Operating RisksOperating Risks

Reclamation Exposure

Regulatory/Permitting

Competition

Weather

Economy

Active Acquisition History

AcquisitionAcquisition DateDate Reserves (mm)Reserves (mm)

Steelhead Development Company (1) Jul 2005 88

Plum Creek Timber Company Mar 2005 85

BLC Properties Jan 2004 176

East Kentucky Nov 2003 21

PinnOak Jul 2003 79

Alpha Natural Resources Apr 2003 353

El Paso Properties Dec 2002 108

Total 910

____________________(1) On July 12, 2005, we closed on the first phase of this acquisition, which included 47.5 million tons of coal reserves.

We expect to complete the acquisition of the remaining reserves in two steps: one at the beginning of 2006 and the other in the middle of 2006.

(2) Reflects owned reserves of 88 million in total, 38.5 million of which we closed on in July 2005. Does not include 56 million of override reserves.

(2)

Increased Distributions Increased distributions 9 out of 10 quarters since IPO, 39% overall

DistributionsDistributions

$1.50

$1.75

$2.00

$2.25

$2.50

$2.75

$3.00

39% Distribution Increase

39% 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.

Significant Growth Potential

Coal royalty business highly fragmented with numerous small operators

Coal companies continue to explore reserve monetization opportunities

Opportunity to explore other qualified minerals outside of coal

Substantial capacity under revolver and good access to capital markets

Proven ability to identify and integrate acquisitions

Financial Overview

31

44 48 51$50

$74

$133

$106

0

20

40

60

80

100

120

140

2002 2003 2004 2005 Guidance*

(fig

ure

s in

mill

ion

s)

Production (mm tons) Coal Royalty Revenue ($ mm)

Strong Financial Performance

___________________* Midpoint of guidance range.

Average Royalty Revenue (per ton): $1.58 $1.66 $2.20 $2.61

Solid Balance Sheet

As Adjusted as of As Adjusted as of June 30, 2005June 30, 2005(1)(1)

Actual as of Actual as of June 30, 2005June 30, 2005

____________________(1) As adjusted for the Steelhead Acquisition and Senior Notes issued on July 2005.

($ in thousands)

Cash and Cash Equivalents $50,760 $47,760

Current Portion of Long-Term Debt $9,350 $9,350

Long-Term Debt

Senior Notes 146,950 196,950

Credit Facility 18,000 -

Total Debt $174,300 $206,300

Partners' Capital 418,739 418,739Total Capitalization $593,039 $625,039

Total Debt / Total Book Capitalization 29.4% 33.0%

Net Debt / Net Book Capitalization 22.8% 27.5%

Subordinated units have many of the same characteristics as common units

NRP (Common) versus NSP (Subordinated)

NRP - Common UnitsNRP - Common Units NSP -Subordinated UnitsNSP -Subordinated Units

When Issued At IPO (October 2002) At IPO (October 2002)

When Publicly Traded October 2002 August 2005

Current Distribution $0.7125 per quarter $0.7125 per quarter

Minimum Distribution $0.5125 per quarter None

Voting Rights to RemoveGeneral Partner

Yes No

Preference on Distributions

At or below $0.5125 per quarter

None

Entitled to Arrearages on Distributions, if any

Yes No

Attractive Tax Structure

Distributions are treated as return of capital

Unit holders are taxed on the income generated by the partnership

Coal royalty revenues on properties held for more than one year are taxed as Section 1231 gains (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

Investment Highlights

Attractive portfolio of long-life, diverse properties

Primarily leases to large operators with diverse customer base

Distribution supported by stable, royalty-based cash flows

No direct exposure to mining operating costs or risks

Well-positioned for growth via coal and mineral acquisitions

Demonstrated ability to grow asset base and distributions

Coal royalty revenues are taxed at capital gains rates

Natural Resource Partners L.P.