Deck of an April 2018 presentation and discussion surrounding the met coal long term outlook as well as risks/opportunities for NRP assets.

1. NATURAL RESOURCE PARTNERS L.P.
MET COAL OUTLOOK & DISCUSSION
DAVID N. DYER

2. CONTENTS
1. Global Growth
2. Metallurgical Coal
Demand
3. Supply Sources
4. USA and NRP
5. Opportunities
6. Strategy
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3. GLOBAL GROWTH
3
• China Population = 1.38B
– Avg Age = 39
– 56% Live in Urban Areas
• India Population = 1.33B
– Avg Age = 26
– 32% Live in Urban Areas
Chinese BOOM
India is where China was in 2000-2002
• Large Rural Population
• Emerging Economy
• Positive Demographics

4. GLOBAL GROWTH
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0
10
20
30
40
50
60
70
80
90
$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000
Urbanization(%)
GDP Per Capita (2010 USD)
GDP vs. Urbanization
USA
China
South
Korea
India
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
0 10 20 30 40 50 60 70 80 90
EnergyConsumption
(kgofoilequiv.percapita)
Urbanization (%)
Urbanization vs. Consumption
USA
South
Korea
China
India
As GDP increases,
urbanization
increases.
As urbanization increases,
Commodity consumption
increases.

5. GLOBAL GROWTH
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• IF India BOOMS like China did earlier this century…
• In addition to current Chinese growth
– Forecasted at approx. +5% per year going forward
– (Second Largest Economy in the World)
• ..and in addition to current rest-of-SE-Asian growth
– Forecasted at +6% per year going forward
RESULT: SIGNIFICANT Commodities BOOM

6. MET COAL DEMAND
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2017e 2022f % Change
Global Steel Demand 1545 1672 8.2%
World Pig Iron Production 1180 1259 6.7%
China 721 722 0.1%
World ex-China 459 537 17.0%
2017e 2022f % Change
Met Coal Demand (mt) 315 346 9.8%
Met Coal Supply (mt) 291 314 7.9%
Net S/D Balance -24 -32 33.3%
Met coal becomes 33% more scarce in 5 years
Global Steel Demand to increase
And Coke Based Blast Furnace is the primary
source of worldwide steel production vs EAF.

7. MET COAL SUPPLY – 5 YR. OUTLOOK
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Met Coal Demand (Mt) 2016 2017e 2022f % Change
Europe 50 52 57 9.6%
Japan 57 56 56 0.0%
Korea 35 36 36 0.0%
Taiwan 12 12 14 16.7%
China 59 69 62 -10.1%
India 52 56 77 37.5%
Brazil 18 19 22 15.8%
Other 13 15 22 46.7%
Total 296 315 346
% Change 6.4% 9.8%
Met Coal Supply (Mt) 2016 2017e 2022f % Change
Australia 189 188 200 6.4%
Canada 27 29 34 17.2%
USA 33 41 30 -26.8%
Russia 13 13 15 15.4%
Indonesia 3 4 9 125.0%
Mozambique 6 10 18 80.0%
Other 6 6 8 33.3%
Total 277 291 314
% Change 5.1% 7.9%
 Is USA in a terminal decline?
IF SO…
 Why is supply going down?
 Geology
 Mining conditions
 Increased Costs
 What happens to NRP
properties?
 Long Term Growth Regions
 Transportation Constrained
 Blending Challenges w/
Current Facilities
 International Opportunities?

8. NOTE:
• Remaining slides were removed for public viewing due to confidentiality
issues.
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