Natural Resource Partners L.P.

Morgan Stanley Small Cap Conference

New York, New York

June 16, 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

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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

~2.0 billion tons (1)

53.6 million tons

176 (3)

68 (3)

Market Capitalization:

Distribution per Unit:

$454 million

$0.5125 quarterly

$2.05 annualized

$1,425 million (4)

$0.79 quarterly

$3.16 annualized

Senior Notes:

Drawn on Revolver:

$0 million

$0 million

$256 million (3)

$10 million(3)

Total Revolver Size:

Cash on Hand

$100 million

$1 million

$175-$300 million (5)

$67 million(3)

_______________________(1) As of 12/31/2005(2) For 2002 and 2005, respectively(3) As of 3/31/2006(4) Based on $56.25 per unit (5) As of 03/31/06 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.

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

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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 (1)

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

(1) Does not include reserves associated with the 2nd and 3rd closings of Williamson Development acquisition in 2006.

• 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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• 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

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Strong Cash Flow and Distribution Strength

• Increased distributions 12 out of 13 quarters since IPO, 54% overall

• Two full quarters of distributions reserved in cash balance– $22.3 mm per quarter based on $0.79 per unit ($3.16

annualized) including GP and IDRs– Cash balance at 3/31/06 - $67.4 mm

• Midpoint of guidance for distributable cash flow for 2006 - $106 mm

• Current coverage ratio based on $3.16 per unit and 2006 guidance – 1.19x

• Room for distribution growth in 2006

• Cash available for acquisitions to fuel future growth

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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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Favorable Current Coal Fundamentals

• Electricity generated from coal is currently 50%, EIA projects to increase to 57% by 2030

• High natural gas prices

• Coal-fired equipment has become cleaner

• Increase in plans to build new coal-fired plants

• Scrubbers being added to existing coal-fired plants

• Future demand – coal-to-liquids and coal-gasification technology

• Increased U.S. export market

• Continued demand due to growth of Chinese and Indian economies

Domestic DemandDomestic Demand

Global DemandGlobal Demand

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NRP – A Proxy for the Coal Industry

• Over 2 billion tons of low, medium and high sulfur coal reserves

• 68 lessees produce approximately 5% of the US production from our 176 leases

• Three major coal producing regions in eleven states– Appalachia

• Northern• Central• Southern

– Illinois Basin– Northern Powder River Basin

• 2005 production: metallurgical – 27% steam – 73%

• 2006 estimated production: metallurgical – 20% steam – 80%

• Only coal company to have reserves that stretch the entire Appalachian coal chain

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Investment Highlights

• Attractive portfolio of long-life, diverse properties

• Lease to 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

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Supplemental Data

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First Quarter 2006 Highlights

• Increased distributions for the eleventh consecutive quarter to $0.79 per unit (annualized rate of $3.16)

• Reported record financial results

– Net income increased 40% over 1Q 2005 to $1.01 per unit– Coal royalty revenues increased 20%– Distributable cash flow increased 45%– Distribution increased 15%

• Sold timber assets for a net gain of $2.2 mm or $0.08 per unit

• Completed the second phase of the Williamson Development acquisition for $35 million

• Financed the above acquisition with $50 mm in long term debt at 5.05% including a pay down of $15 mm on our credit facility

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Strong Balance Sheet – 3/31/06

Cash

Total assets

Fixed rate debt

Floating rate debt

Debt / Total capitalization

Weighted average interest rate on Senior Notes (Fixed)

$ 67.4 mm

$ 729.7 mm

$ 256.3 mm

$ 10.0 mm

37%

5.2%

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Weighted Average Interest Rate on Senior Notes

Series

Amount

Outstanding

12/31/05

Fixed Interest

Rate

2006 Annual

Payment

A $53.4 mm 5.55% $3.3 mm

B $67.9 mm 4.91% $6.05 mm

C $35.0 mm 5.55% $0 mm

D $100.0 mm 5.05% $0 mm

Total $206.3 mm 5.19% $9.35 mm

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Active Acquisition History – Major Acquisitions

AcquisitionAcquisition DateDate ReservesReserves (mm tons)(mm tons)

(1) Does not include 14 million tons of override reserves.(2) Closed on the first two phases of this acquisition. Expect to complete the final

acquisition of the remaining reserves in the middle of 2006. Reflects owned reserves of 88 million tons in total, of which NRP has closed on approximately 2/3rds. Does not include 56 million tons of override reserves.

AFG ( Penn Central) Nov 2005 179

Area F/Lexington Sep 2005 25 (1)

Williamson Development Jul 2005/Jan 2006 88 (2)

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 (Coastal Coal) Dec 2002 108

Total 1,130