DiaMedica Announces Issuance of Stock Options

DiaMedica (TSX VENTURE:DMA) today wishes to announce the issuance of stock
options to the Company's management, directors, staff and consultants. DiaMedica
has issued 1,428,500 stock options to the Company's management, directors, staff
and consultants at an exercise price of $0.68 per share. These options will
expire no later than November 4, 2015 subject to applicable vesting provisions.
These options were awarded in accordance with the Company's stock option plan.


About DiaMedica

DiaMedica is a biopharmaceutical company focused on developing novel treatments
for type 1 diabetes, type 2 diabetes and other disorders. DiaMedica has
completed two successful proof-of-concept Phase II studies with DM-71 and DM-99,
which demonstrated human efficacy in lowering blood glucose levels in patients
with type 2 diabetes.


DiaMedica's lead product DM-199 is a novel recombinant next generation form of
DM-99, which has shown the potential to increase insulin sensitivity, reduce the
autoimmune attack and trigger proliferation of pancreatic beta cells, neural
stem cells and bone marrow cells. DiaMedica is listed on the TSX Venture
Exchange under the trading symbol "DMA". For further information please visit
www.diamedica.com.


Caution Regarding Forward-Looking Information

Certain statements contained in this press release constitute forward-looking
information within the meaning of applicable Canadian provincial securities
legislation (collectively, the "forward-looking statements"). These
forward-looking statements relate to, among other things, DiaMedica's
objectives, goals, targets, strategies, intentions, plans, beliefs, estimates
and outlook, and can, in some cases, be identified by the use of words such as
"believe," "anticipate," "expect," "intend," "plan," "will," "may" and other
similar expressions. In addition, any statements that refer to expectations,
projections or other characterizations of future events or circumstances are
forward-looking statements. Specifically, this press release contains
forward-looking statements regarding matters such as, but not limited to, the
anticipated use of proceeds from the Offering, management's assessment of
DiaMedica's future plans, information with respect to the advancement of
DiaMedica's research and development programs, and DiaMedica's other estimates
and expectations. 


These statements reflect management's current beliefs and are based on
information currently available to management. Certain material factors or
assumptions are applied in making forward-looking statements, and actual results
may differ materially from those expressed or implied in such statements.
Important factors that could cause actual results to differ materially from
these expectations include, among other things: uncertainties and risks related
to our research and development programs, the availability of additional
financing, risks and uncertainties relating to the anticipated use of proceeds,
changes in debt and equity markets, uncertainties related to clinical trials and
product development, rapid technological change, uncertainties related to
forecasts, competition, potential product liability, additional financing
requirements and access to capital, unproven markets, the cost and supply of raw
materials, management of growth, effects of insurers' willingness to pay for
products, risks related to regulatory matters and risks related to intellectual
property matters. Additional information about these factors and about the
material factors or assumptions underlying such forward-looking statements may
be found in the body of this news release, as well as under the heading "Risk
Factors" contained in DiaMedica's 2009 annual information form. DiaMedica
cautions that the foregoing list of important factors that may affect future
results is not exhaustive. When relying on DiaMedica's forward-looking
statements to make decisions with respect to DiaMedica, investors and others
should carefully consider the foregoing factors and other uncertainties and
potential events. Such forward-looking statements are based on a number of
estimates and assumptions, which may prove to be incorrect, including, but not
limited to, assumptions regarding the availability of additional financing for
research and development companies, and general business and economic
conditions. These risks and uncertainties should be considered carefully and
investors and others should not place undue reliance on the forward-looking
statements. Although the forward-looking statements contained in this press
release are based upon what management believes to be reasonable assumptions,
DiaMedica cannot provide assurance that actual results will be consistent with
these forward-looking statements. DiaMedica undertakes no obligation to update
or revise any forward-looking statement. Additional risk factors, factors which
could cause actual results to differ materially from expectations, and
assumptions relating specifically to our acquisition of Sanomune may be found in
our press releases dated February 18, 2010 and April 20, 2010.