DMA Diamedica Therapeutics

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT
INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN
THE UNITED STATES.


DiaMedica Inc. (TSX VENTURE:DMA) ("DiaMedica" or the "Company"), a drug
discovery and development company focused on novel treatments for Type 2
diabetes, today announces that it has closed its previously announced offering
of common shares raising gross proceeds of $1,773,450 (the "Offering"). Under
the Offering, DiaMedica issued 1,689,000 common shares at a price of $1.05 per
common share without warrants pursuant to its short form prospectus dated July
29, 2008. The Offering was led by Dundee Securities Corporation and included
Loewen, Ondaatje, McCutcheon Ltd. (collectively, the "Agents").


The Company paid the Agents a cash commission of 9% of the proceeds raised from
the Offering.


The net proceeds of the offering will primarily be used to fund the Company's
ongoing research and development programs, including clinical trials for its
lead products DM-71, DM-83 and DM-99 as well as for general corporate purposes
that will promote the growth of the Company and increase shareholder value.


THE COMPANY'S COMMON SHARES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE OFFERED OR SOLD WITHIN THE
UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS ABSENT
REGISTRATION OR AN APPLICABLE EXEMPTION FROM U.S. REGISTRATION REQUIREMENTS.


About DiaMedica

DiaMedica is developing novel treatments for various stages of Type 2 diabetes.
The Company has completed a phase II clinical trial with its lead product DM-71
which demonstrated the ability to reduce HbA1c levels and weight in man. The
Company recently completed a phase II clinical trial with DM-83 that showed a
reduction in the amount of peak insulin required to process glucose. This
indicates that DM-83 may prolong the insulin producing ability of the pancreas.
DiaMedica's third drug in clinical development, DM-99, has been shown in
pre-clinical studies to cause muscle to increase the uptake of glucose from the
blood by over 40% in 60 minutes (p less than 0.04). Based on its newly
discovered mechanism, the Company has been issued two U.S. patents and currently
has 35 pending patents worldwide for a broad range of diabetes and related
metabolic disorders including obesity and hypertension.


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, "forward-looking statements"). These forward-looking
statements relate to, among other things, our objectives, goals, targets,
strategies, intentions, plans, beliefs, estimates and outlook, including,
without limitation, our anticipated future operating results, 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.


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: DiaMedica's early stage of
development, lack of product revenues and history of operating losses,
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, supply of raw materials, income tax matters, management of
growth, partnerships for development and commercialization of technology,
effects of insurers' willingness to pay for products, system failures,
dependence on key personnel, foreign currency risk, risks related to regulatory
matters and risks related to intellectual property and other risks detailed from
time to time in DiaMedica's filings with Canadian securities regulatory
authorities, as well as DiaMedica's ability to anticipate and manage the risks
associated with the foregoing. 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 final long-form prospectus dated
March 12, 2007. 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.


These risks and uncertainties should be considered carefully and prospective
investors 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.

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