DiaMedica Issues DSU Units and Grants Stock Options

DiaMedica (TSX VENTURE:DMA) announces today the Company has awarded 47,435 units
under the Company's Deferred Share Unit Plan ("DSU") to senior officers with a
grant date fair value of $1.70 per unit. Under the DSU plan, rights to the
Company's shares ("units") may be awarded to senior officers or directors, on a
deferred payment for annual or special bonus compensation. Each DSU unit can be
redeemed for one common share of the Company by the Unit holder only on
cessation of employment with the Company. 


The Company also announced that it has issued 175,000 stock options to its
independent directors under the terms of the Company's stock option plan. The
options have an exercise price of $1.70 and a term of 10 years. The grant of
options is subject to acceptance by the TSX Venture Exchange.


About DiaMedica

DiaMedica is a biopharmaceutical company focused on discovery and development of
novel therapeutic compounds for diabetes and other major, medically-unmet
diseases. DiaMedica's lead compound, DM-199, is a recombinant human protein that
represents a novel approach to treating Type 1 and Type 2 diabetes. In a Type 1
diabetes model, DM-199 halted the autoimmune attack on beta cells by stimulating
regulatory T-cells, and resulted in a 12-fold increase in C-peptide levels. In
Type 2 diabetes models, DM-199 treatment stimulated proliferation of insulin
producing beta cells, resulting in significant improvement in glucose control.
DiaMedica is also developing a novel monoclonal antibody, DM-204 as a treatment
for Type 2 diabetes. Chronic treatment with DM-204 in a Type 2 diabetes model
resulted in significant improvement in blood glucose control and HbA1c levels
and also significant decreases in blood pressure and serum cholesterol.


Diamedica's DM-199 and DM-204 were both named Windhover's "2011 Top 10
Cardiovascular/ Metabolic Projects to Watch". 


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.