DiaMedica Announces Completion of $3.88 Million Prospectus Offering

DiaMedica Inc., (TSX VENTURE:DMA), a biotechnology company focused on diabetes,
is pleased to announce the completion today of its previously announced short
form prospectus offering (the "Offering").


Pursuant to the Offering, DiaMedica issued a total of 3,105,000 units (the
"Units") at a price of $1.25 per Unit for aggregate gross proceeds of
approximately $3.88 million. Each Unit is comprised of one common share in the
capital stock of the Company (a "Common Share") and one common share purchase
warrant (a "Warrant"), with each Warrant entitling the holder thereof to acquire
an additional Common Share until July 22, 2013 at a price of $1.50 per share.
The expiry date of the Warrants is subject to acceleration if the
volume-weighted average trading price of the Common Shares on the TSX Venture
Exchange exceeds $2.00 per share for a period of 10 consecutive trading days.


"This Offering will be used to fund DiaMedica's ongoing research and development
programs, including a planned clinical trial for DM-199," said Rick Pauls,
President and CEO of DiaMedica.


Sora Group Wealth Advisors Inc. ("Sora") acted as agent for the Offering. In
connection with the completion of the Offering, Sora exercised its agent's
option to increase the size of the Offering by 15% or 405,000 Units from
2,700,000 Units to 3,105,000 Units.


About DiaMedica

DiaMedica is a biopharmaceutical company that has developed novel therapeutic
compounds aimed to improve the lives of patients with diabetes and other major,
medically unmet diseases. DiaMedica's lead compound, DM-199, represents a novel
approach to treating Type 1 and Type 2 diabetes by demonstrating significant
results against three major aspects of these diseases: 1) halting the autoimmune
attack on beta cells; 2) proliferating insulin producing beta cells and 3)
improving glucose control. 


DiaMedica is also developing DM-204, a monoclonal antibody that inhibits the
enzyme glycogen synthase kinase. In preclinical studies, DM-204 significantly
improved glucose control and decreased blood pressure. 


The Company is listed on the TSX Venture Exchange 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 the
Company'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. The Company 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. Although management believes that expectations are based
on reasonable assumptions, no assurance can be given that these expectations
will materialize.