Grace leads Olesen by 4 at Dunhill Links after Day 3

• By Associated Press
• Oct 6, 2012 3:27 PM ET

ST. ANDREWS, Scotland – Branden Grace shot a 3-under 69 on Saturday at Carnoustie to take a four-stroke lead after the third round of the Alfred Dunhill Links Championship.

The South African was 20-under overall after a remarkable 60 in the first round at Kingsbarns. Grace led by six shots with just four holes left before a double-bogey 6 on No. 15 when he drove into a fairway bunker.

''I didn't play particularly well but managed to get it around,'' Grace said. ''If we have a great day tomorrow, it's going to be a low scoring round, and if the weather turns bad on us and the wind starts blowing, you'll never know what St. Andrews has got for us.''

Thorbjorn Olesen of Denmark was second after a 68 at Kingsbarns. He also had a double-bogey 6 on the 17th. Swedes Frederik Andersson Hed (66) and Alexander Noren (65) were tied for third, one shot behind Olesen. U.S. Ryder Cup player Dustin Johnson (67) made the 5-under cut for the final round with a shot to spare on the Old Course at St. Andrews. Germany's Martin Kaymer and Sweden's Peter Hanson each shot a 69 to also make the cut.

American businessman Hugh Connerty and Thai professional Thongchai Jaidee lead the Team Championship by five shots at 33 under.

Olympic swimming great Michael Phelps, playing with pro-partner Paul Casey, failed to make the cut. On Friday, Phelps holed an astonishing 153-foot putt during the second round of team play.

The tournament has a first prize of $800,000 and is played over the Old Course at St Andrews, the Championship Course at Carnoustie and the Kingsbarns Golf Links.