DiaMedica Provides Update Regarding Sanomune Acquisition

DiaMedica Inc. (TSX VENTURE:DMA) ("DiaMedica"), a biopharmaceutical company
focused on a novel approach to treating diabetes, is pleased to provide an
update with respect to its proposed acquisition (the "Acquisition") of Sanomune
Inc. ("Sanomune"), a privately held biopharmaceutical company focused on
neurological conditions, and to announce details of its planned public offering
of units (the "Offering"). 


As previously disclosed, in order to avoid the cost and delay of holding a
shareholders meeting to consider the Acquisition, DiaMedica made application to
the Ontario Securities Commission (the "OSC") for an order exempting DiaMedica
from the requirements of Part 5.3(2) of Multilateral Instrument 61-101 ("MI
61-101"), and, in lieu of such requirements, to obtain the necessary
disinterested minority approval for the Acquisition (the "Minority Approval") by
obtaining the written consent of shareholders. The requested order was issued by
the OSC effective March 25, 2010. 


DiaMedica is pleased to report that it has obtained written consents to the
Acquisition from shareholders representing approximately 65% of the common
shares of the company held by parties eligible to vote for approval of the
transaction under Part 8 of MI 61-101. This is in excess of the simple majority
requirement (i.e., 50%+1) set out in MI 61-101 for such Minority Approval. 


Final acceptance of the Acquisition by the TSX Venture Exchange (the "TSX-V") is
conditional upon completion of an offering with proceeds of not less than
$3,000,000 received from arm's length investors. 


The Company anticipates that the Sanomune Acquisition will be completed in May,
2010. 


About DiaMedica and Sanomune

DiaMedica is a biopharmaceutical company developing treatments for diabetes,
neurological and autoimmune diseases. Two of DiaMedica's products, DM-71 and
DM-99, have demonstrated human efficacy in lowering blood sugar levels in
diabetics based on a novel nerve signaling mechanism. 


Sanomune's lead compound, SAN-61, for the treatment of Alzheimer's disease, has
demonstrated neural protection (protects brain cells) as well as the ability to
trigger neural stem cell proliferation (generates new brain cells). The Ottawa
Centre for Research and Innovation named both Sanomune and DiaMedica as a Top
10(TM) Canadian Life Sciences Company for 2009. 


Following the completion of the Sanomune Acquisition, DiaMedica intends to
expand into neurological and autoimmune diseases with a improved recombinant
version of a protein that has demonstrated neural protection properties as well
as neural stem cell proliferation properties. The protective and regenerative
aspects of the protein are broadly applicable to numerous indications including
Alzheimer's and Huntington's disease as well as type 1 diabetes. In addition,
Sanomune is also developing a panel of monoclonal antibodies targeting diabetes,
Alzheimer's and leukemia based on the inhibition of GSK3B. 


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
prospective Offering and the proceeds from the Offering, the anticipated use of
proceeds from the Offering, regulatory approval of the Offering, and our other
plans, estimates and expectations, including the completion of our proposed
acquisition of Sanomune Inc. 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 ability to complete the Offering, the
availability of 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 2008 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 financing for research and development companies,
general business and economic conditions, and DiaMedica's ability to complete
its proposed acquisition of Sanomune Inc. 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 proposed acquisition
of Sanomune Inc. may be found in our press release dated February 18, 2010.