DiaMedica Completes Issue of Shares for Debt to BFC Group

MINNEAPOLIS, MINNESOTA--(Marketwired - April 28, 2016) - DiaMedica Inc. (the "Company") (TSX VENTURE:DMA)(OTCQB:DMCAF), announces the completion of the issuance of shares in settlement of a debt owed to the BFC Group, as announced on March 10, 2016 and as approved by the TSX Venture Exchange. The debt was incurred pursuant to consulting services provided by the BFC Group to the Company, including advising the Company as it considers establishing its presence and potential development partnerships with pharmaceutical firms in Asia.

Pursuant to the transaction, the Company issued 50,000 common shares (the "Shares") at a deemed price of $0.20 per Share. In accordance with the applicable securities laws, the Shares are subject to a 4-month hold period from the date of issuance.

About BFC Group

BFC Group is a China-based advisory firm that focuses on mergers and acquisitions, licensing, and regulatory affairs. They work with healthcare companies in the US, Europe, and Asia.

About DiaMedica

DiaMedica is a publicly traded clinical stage biopharmaceutical company focused on developing novel treatments for vascular diseases, including stroke and metabolic and kidney dysfunction. DiaMedica's common shares are listed on the TSX Venture Exchange under the trading symbol "DMA" and on the OTCQB under the trading symbol "DMCAF".

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. Forward looking statements in this news release include, but are not limited to, the Company's objectives, goals, future plans and statements regarding the use of proceeds from the private placement. Factors that could cause actual results to differ materially from such forward-looking information described in detail in the DiaMedica's filings with the Canadian securities regulators, all of which are available on SEDAR (www.sedar.com). 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. DiaMedica 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, unless required by law. 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 press release.