DiaMedica Inc. Announces Completion of $4.6 Million Prospectus Offering

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DiaMedica Inc. (TSX VENTURE:DMA), 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 5,111,175 units (the
"Units") at a price of $0.90 per Unit for aggregate gross proceeds of
approximately $4.6 million. Each Unit comprises one common share in the capital
stock of the Company (a "Common Share") and one half of one common share
purchase warrant (a "Warrant"), with each whole Warrant entitling the holder
thereof to acquire an additional Common Share until March 22, 2016 at a price of
$1.10 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 $1.60 per share for a period of 10 consecutive trading
days. In connection with the completion of the Offering, the agent Sora Group
Wealth Advisors Inc. exercised its option in full to increase the size of the
Offering by 15% or 666,675 Units from 4,444,500 Units to 5,111,175 Units.


"This Offering will be used to fund DiaMedica's ongoing research and development
programs, including an upcoming Phase I/II clinical trial for DM-199 and
additional preclinical indications," said Rick Pauls, President and CEO of
DiaMedica.


In addition to the foregoing, DiaMedica has made application today to the TSX
Venture Exchange to amend the exercise price of the warrants that were issued in
May of 2012 in connection with an earlier exercise incentive program from an
exercise price of $2.50 to an exercise price of $1.10. Any such amendment to the
exercise price is subject to TSXV approval.


About DiaMedica

DiaMedica Inc. (TSX VENTURE:DMA) is a biotechnology company developing
first-in-class treatments for the treatment of diabetes. DiaMedica's lead
compound, DM-199, is a recombinant human protein for the treatment of both Type
1 and Type 2 diabetes and their complications. The Company is also developing
the first therapeutic GPCR agonist monoclonal antibody, DM-204, for the
treatment of Type 2 diabetes and cardiovascular disease. DiaMedica's shares
trade on the Toronto Stock Exchange Venture (TSX VENTURE:DMA). For more
information please visit www.diamedica.com.


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. 


FOR FURTHER INFORMATION PLEASE CONTACT: 
DiaMedica Inc.
Rick Pauls
President and CEO
763-710-4455
[e-mail]
www.diamedica.com