Hill, who admitted he is addicted to practice, carried some form into the tournament after a five under par round at the Kaikoura Pro-am and is looking forward to the weekend.
Lee, who has struggled in 2011 on the Japan Golf Tour, was impressed as he made six birdies and two bogeys in his 68.
"I was a bit frustrated with yesterday because I felt I turned a 65 into a 69 just by doing stupid stuff," he said.
"I know I am not supposed to get long and loose but it feels good. I am driving it great and putting well. They say you shouldn't over-swing but it feels great and I am hitting it great so I will keep going with it."
Two-time defending champion Anthony Doyle struggled to keep pace. The resident professional at the Christchurch Golf Club will head into the weekend 10 shots back from the leaders after a two over par 74.
Going the other way was Levin amateur Tyler Hodge, who climbed 28 places into a share of fourth and is the leading amateur.
"It's only my third Charles Tour event and that is my lowest score at one of these events by two shots," the 17-year-old said. "I have been in this position before so I feel OK about it. I led the North Island Amateurs for the first two days and I have learned from that experience. I am enjoying my golf here."
In the women's field, Julianne Alvarez shot a two under par 72 to take a two shot lead from Emily Perry into the third round.
The Lochiel amateur Perry is still in contention for her third Charles Tour win in a row after an even par 74.