DiaMedica Inc. Finalizes Terms of Public Offering

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES/


DiaMedica Inc. ("DiaMedica") (TSX VENTURE:DMA), announced today that it has
finalized the terms of its previously announced short form prospectus offering
(the "Offering"). DiaMedica plans to issue a minimum of 2,857,200 units (each a
"Unit") comprised of one common share of DiaMedica and one half of one common
share purchase warrant (each whole warrant, a "Warrant") and up to a maximum of
7,142,900 Units raising at least $2,000,000 from the Offering and up to a
maximum of $5,000,000. As previously disclosed each Unit will be issued at a
price of $0.70 per Unit. The Warrants are subject to acceleration and adjustment
in certain circumstances. The Offering will be pursued on a commercially
reasonable best efforts agency basis pursuant to an agency agreement to be
entered into between DiaMedica and Paradigm Capital Inc., as agent. 


The securities described herein have not been, and will not be, registered under
the United States Securities Act of 1933, as amended (the "U.S. Securities
Act"), or any state securities laws, and accordingly may not be offered or sold
within the United States, except in transactions that do not require
registration under the U.S. Securities Act or applicable state securities laws.
This press release does not constitute an offer to sell or a solicitation of an
offer to buy any securities in the United States.


About DiaMedica

DiaMedica is a publicly traded (TSX VENTURE:DMA) clinical stage
biopharmaceutical company focused on the discovery and development of novel
therapies to treat diabetes and the complications associated with diabetes.
DiaMedica's lead clinical stage compound, DM199, is a recombinant human protein
known as rhKLK1 that represents a novel approach to treating diabetes and
associated complications. DiaMedica is also developing a monoclonal antibody,
DM204 for the treatment of Type 2 diabetes, which is in preclinical development.


DiaMedica's common shares are listed on the TSX Venture Exchange in Canada under
the trading symbol 'DMA'.


FORWARD-LOOKING STATEMENTS

The statements made in this press release that are not historical facts contain
forward-looking information that involves risk and uncertainties. All
statements, other than statements of historical facts, which address DiaMedica's
expectations, should be considered forward-looking statements. Such statements
are based on management's exercise of business judgment as well as assumptions
made by and information currently available to management. When used in this
document, the words "may", "will", "anticipate", "believe", "estimate",
"expect", "intend" and words of similar import, are intended to identify any
forward-looking statements. You should not place undue reliance on these
forward-looking statements. These statements reflect a current view of future
events and are subject to certain risks and uncertainties as contained in
DiaMedica's filings with Canadian securities regulatory authorities. Should one
or more of these risks or uncertainties materialize, or should underlying
assumptions prove incorrect, actual results could differ materially from those
anticipated in these forward-looking statements. DiaMedica undertakes no
obligation, and does not intend, to update, revise or otherwise publicly release
any revisions to these forward-looking statements to reflect events or
circumstances after the date hereof, or to reflect the occurrence of any
unanticipated events, unless required by law. Although management believes that
expectations are based on reasonable assumptions, no assurance can be given that
these expectations will materialize.


Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of the contents of this press
release.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Rick Pauls
President & CEO
DiaMedica Inc.
Phone: [phone]
[e-mail]