DiaMedica Expands its Business Development Capabilities

MINNEAPOLIS, MINNESOTA--(Marketwired - Dec. 7, 2016) - DiaMedica Inc. (the "Company") (TSX VENTURE:DMA)(OTCQB:DMCAF) announced today it has engaged Outreach 99 LLC ("Outreach") to assist in the business development efforts of the Company. Paul Papi, Founder and President of Outreach 99 LLC, will personally direct the effort, acting as DiaMedica's Vice President of Business Development.

Mr. Papi has over 37 years of experience in life sciences including 25 years at Mylan Pharmaceuticals. His expertise includes executive management in the pharmaceutical industry, investment banking, and investor relations. Mr. Papi stated, "I look forward to working closely with the DiaMedica team as it enters an exciting time in its development."

"Mr. Papi is a seasoned pharmaceutical and investment banking veteran with extensive experience in business development, mergers and acquisitions, and marketing," stated Rick Pauls, President and CEO of DiaMedica.

The agreement is for an initial one year term.

About DiaMedica

DiaMedica is a clinical stage biopharmaceutical company focused on developing novel treatments for neurological and kidney diseases. DiaMedica's 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. These statements reflect a current view of future events and are subject to certain risks and uncertainties as contained in DiaMedica's filings with Canadian securities regulatory authorities, 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.

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