DMA Diamedica Therapeutics

DiaMedica (TSX VENTURE:DMA) announced today that its Board of Directors has
adopted a shareholder rights plan (the "Plan"), effective as of this date. The
Plan is designed to provide adequate time for the Board of Directors and the
shareholders to assess an unsolicited takeover bid for DiaMedica, to provide the
Board of Directors with sufficient time to explore and develop alternatives for
maximizing shareholder value if a takeover bid is made, and to provide
shareholders with an equal opportunity to participate in a takeover bid and
receive full and fair value for their common shares (the "Common Shares"). The
Company is not adopting the Plan in response to any specific proposal to acquire
control of the Company, nor is it aware of any such effort.


Shareholders will be asked to approve the Plan at the Company's upcoming annual
meeting. The Plan, if approved by the shareholders, will expire at the close of
the Company's annual meeting of shareholders in 2014.


The rights issued under the Plan will initially attach to and trade with the
Common Shares and no separate certificates will be issued unless an event
triggering these rights occurs. The rights will become exercisable only when a
person, including any party related to it, acquires or attempts to acquire 20
percent or more of the outstanding Common Shares without complying with the
"Permitted Bid" provisions of the Plan or without approval of the Board of
Directors. Should such an acquisition occur or be announced, each right would,
upon exercise, entitle a rights holder, other than the acquiring person and
related persons, to purchase Common Shares at a 50 percent discount to the
market price at the time.


Under the Plan, a Permitted Bid is a bid made to all holders of the Common
Shares and which is open for acceptance for not less than 60 days. If at the end
of 60 days at least 50 percent of the outstanding Common Shares, other than
those owned by the offeror and certain related parties have been tendered, the
offeror may take up and pay for the Common Shares but must extend the bid for a
further 10 days to allow other shareholders to tender.


The issuance of Common Shares upon the exercise of the rights is subject to
receipt of certain regulatory approvals. The rights plan is similar to other
shareholder rights plans recently adopted by numerous other Canadian companies.
A material change report and a complete copy of the Plan will be filed on the
System for Electronic Document Analysis and Retrieval (SEDAR) shortly.


DiaMedica further announces the issuance of 100,000 stock options to members of
the Board of Directors. The options are exercisable at $1.44 and are the
semi-annual award to members of the Board under an automatic issuance mechanism
designed to eliminate any subjectivity as to timing or price.


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 significantly improve glucose metabolism
and protect and proliferate beta cells.


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
Corporation'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 Corporation 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.

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