DiaMedica Issues DSU Units and Grants Stock Options


WINNIPEG, MANITOBA--(Marketwire - May 10, 2012) - 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.

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.

Contact Information:

DiaMedica Inc.
Rick Pauls
President and CEO
204.477.7590
info@diamedica.com