[Letterhead of Capital Resources Group, Inc.]

                                                              June 15, 2004

Mr. Lonnie R. Trasamar
President and Chief Executive Officer
Wells  Financial Corp.
53 First Street, SW
Wells, MN 56097

Dear Mr. Trasamar:

         Capital  Resources Group, Inc.  ("Capital  Resources") has undertaken a
valuation  analysis of Wells  Financial Corp. (the "Company") in connection with
the  Company's  proposed  reverse  stock  split and  repurchase  of odd-lot  and
fractional shares of common stock (the "transaction").  This letter provides our
determination  of an  appropriate  pricing  range for the Company to  repurchase
shares in the transaction.

         In preparing this letter, we have performed a financial analysis of the
Company,  which  has  included  a  review  of the  Company's  audited  financial
statements  and annual  report for the fiscal  year  ended  December  31,  2003,
quarterly report on Form 10-QSB for March 31, 2004, regulatory financial reports
for the quarterly  period ended March 31, 2004, and various  internal  financial
reports  including the most recent budget and other reports which we have deemed
appropriate.  Our  valuation is based on the Company's  representation  that the
information  contained in the above  mentioned  reports and additional  evidence
furnished  to us by the Company are  truthful,  accurate and  complete.  Capital
Resources  has not  performed an appraisal of the assets or  liabilities  of the
Company  nor have we  independently  verified  the data  and  other  information
provided to us by the Company.

         In preparing this valuation, we have considered recent developments and
conditions  in the  equity  market  for thrift  institutions  and the  Company's
operating  results,  financial  condition  and  future  prospects.  We have also
considered  such  financial  and pricing  factors as we have deemed  appropriate
under the circumstances  including,  among others, the following: (i) the impact
of stock  repurchases  on the  Company's  pro forma  earnings per share and book
value;   (ii)  the   Company's   recent   trading   activity   and  the  pricing
characteristics of stock of comparable thrift institutions demonstrating similar
asset size and capital ratios as well as similar  earnings  ratios,  and similar
market area; (iii) pricing premiums paid in recent stock repurchase transactions
that are similar to the Company's  transaction;  and (iv) a discounted cash flow
analysis of the Company.



CAPTIAL RESOURCES GROUP, INC.
Mr. Lonnie R. Trasamar
June 15, 2004
Page 2



         Based on the above  analysis,  we have  determined  that an appropriate
pricing range for the Company to repurchase shares in the transaction is between
$28.00 and $29.00 per share. This valuation  reflects current  conditions in the
thrift equity  markets,  the recent trading range of the Company's stock and the
Company's recent operating results, which is subject to change prior to the time
the transaction is initiated.  Therefore,  at the appropriate  time prior to the
initiation of the transaction and if there has been no significant change in the
above conditions,  Capital Resources will confirm this valuation by recommending
a single price per share within the above price range.

                                   Sincerely,

                                   CAPITAL RESOURCES GROUP, INC.

                                   /s/ Michael B. Seiler


                                   Michael B. Seiler
                                   Senior Vice President