Iles put himself into contention yesterday with a neat 5-under-par second round of 67, following his 71 on Thursday.
He, like David Smail, Phil Tataurangi and Josh Geary, will try to lift this weekend to become the first New Zealand winner of the Open since Dunedin's Mahal Pearce in 2003.
"You've got to win this tournament, don't you?" Iles said after his round.
"I can't remember second place for the last 10 years but I remember who won it. It's close to my heart so I want to give it my best shot.
"I'll come out and make as many birdies as I can. I was a little bit conservative today. I three-putted two par-fives for par because I was going a bit soft and trying to make birdie.
"I want to be a bit more aggressive coming to the hole so I can make more birdie putts."
Iles (26) said seeing New Zealanders near the top of the leaderboard at The Hills eased the pressure because it made the Open seem like a low-key amateur event.
He has been working on his swing with coach Mal Tongue but was hitting the ball poorly leading into the tournament.
Iles has been trying to flatten out his shoulder turn and said he could not have timed things better.
"Something clicked today. I hit an average shot off the tee and decided to sort of quit on my downswing so I could relax my left side.
"I hit it amazing after that and didn't get in trouble once."
Iles has started to flourish nearly six years since the golf-cart accident that left him in a coma.
He has full status on the Nationwide Tour after finishing 45th on the money list last year.
If he can improve to 25th or better, he will be joining the stars on the PGA Tour.
Tataurangi had the other impressive round of the day by a New Zealander, carding a 4-under-par 68 to move to 7-under for the tournament.
"Conditions were absolutely perfect and the course could not play any easier," Tataurangi said.
Tataurangi used to work with coach John Griffin at Millbrook and was also involved in the development of The Hills.
"I have a little bit of inside knowledge because I can remember walking round here with John Darby and Michael Hill years ago.
"There were still deer fences up then, so it's been quite a transformation.
"There are still a few things I'd like Michael to change. But I do enjoy this course."
Two prominent New Zealanders missed the cut.
Michael Long, the 1996 champion, added a 71 to his first-round 75 to finish 2-over, while Steve Alker shot 77 yesterday to finish 3-over.
