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DiaMedica Inc. Announces Public Offering

MINNEAPOLIS, MINNESOTA -- (Marketwire) -- 02/26/13 -- DiaMedica Inc. (TSX VENTURE:DMA), announced today that it has filed a preliminary short form prospectus in connection with the public offering (the "Offering") of units of DiaMedica (the "Units"). The Offering is being placed on a commercially reasonable efforts agency basis by Sora Group Wealth Advisors Inc.

Each Unit is currently expected to consist of one common share in the capital stock of DiaMedica and one-half of one common share purchase warrant, with each whole warrant entitling the holder thereof to purchase one common share within two years from the initial closing date of the offering, subject to an acceleration of the expiry date of such warrants in certain circumstances as more particularly described in the prospectus.

The Offering size, price of the Units and the exercise price of the warrants will be determined by DiaMedica and Sora in the context of the market.

In addition to the foregoing, DiaMedica intends to complete a non-brokered private placement in the United States of units of securities of DiaMedica (the "Concurrent Units") to certain US accredited investors at the same price as the Units (the "Concurrent Private Placement"). The securities issued under the Concurrent Private Placement will not be qualified by prospectus. Each Concurrent Unit will have substantially the same attributes and will be issued on substantially the same terms as the Units offered pursuant to the Offering.

It is currently expected that the closing of the Concurrent Private Placement will take place contemporaneously with the closing of the Offering, however, closings of the Offering and the Concurrent Private Placement are not conditional on the other.

DiaMedica intends to use the net proceeds from the offering and Concurrent Private Placement for research and development, including a Phase I/II clinical trial, and for working capital and general and administrative purposes as described in the prospectus.

About DiaMedica

DiaMedica is a biopharmaceutical company that develops novel therapeutic products designed to improve the lives of people with Type 1 diabetes, Type 2 diabetes and other large, medically unmet diseases. DiaMedica's lead product candidate, DM-199, has been shown to protect and proliferate beta cells and significantly improve glucose metabolism in preclinical models.

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.

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.

Contacts:
DiaMedica Inc.
Rick Pauls
President and CEO
763-710-4455
info@diamedica.com

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