DiaMedica Receives $1.7 Million Through Warrant Exercise

DiaMedica (TSX VENTURE:DMA) is pleased to announce that it has received gross
proceeds of $1,706,325 pursuant to the completion of the early exercise warrant
incentive program as previously announced in a press release dated August 3,
2012, and the full exercise of associated outstanding broker warrants. 


The early exercise program resulted in the exercise of 878,800 July 2011
warrants at $1.50 per share for $1,318,200, representing 88% of the outstanding
July 2011 warrants, and 100% of the 310,500 July 2011 broker warrants for
$388,125. 


"The successful completion of the early warrant exercise program and exercise of
all broker warrants further extends our runway as we continue to execute on our
development milestones in our ongoing effort to create shareholder value,"
stated Mr. Rick Pauls, Chairman and CEO of DiaMedica.


About DiaMedica 

DiaMedica is a biopharmaceutical company focused on the 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. DiaMedica is also developing a novel monoclonal antibody, DM-204, as a
treatment for Type 2 diabetes. Chronic treatment with DM-204 in Type 2 diabetes
models resulted in significant improvement in blood glucose control and
demonstrated significant decreases in blood pressure and serum cholesterol.


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.