DiaMedica Issues Stock Option Grant

DiaMedica Inc. (TSX VENTURE:DMA), announces that the Board of Directors has
granted options to purchase 100,000 common shares of the Corporation to its
directors as part of its bi-annual stock option issuance. The options were
issued at an exercise price of $0.86 per share for a ten-year term.


About DiaMedica 

DiaMedica Inc. 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, DM-199, is a recombinant human protein
that represents a novel approach to treating Type 1 and Type 2 diabetes.
DiaMedica is also developing a novel monoclonal antibody, DM-204 for the
treatment of Type 2 diabetes, which is in preclinical development. The Company
is listed on the TSX Venture Exchange under the trading symbol '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.


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 News
Release.


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