Dredge took advantage of the preferred lies rules to become the 11th player in European Tour history to shoot a 60. He joins Jamie Spence, Bernhard Langer and Darren Clarke to shoot 12-under-par rounds of 60. The other seven rounds of 60 were between 8-under and 11-under-par rounds.
'Guys have had big leads before and I have to go out tomorrow and just play as I did today,' Dredge said. 'Try and hit the fairway, hit the green and hole the putts. I am going to go out tomorrow and try and shoot a good score. If I win by 12 then great, if I win by one that will be fine. I will win and that's what I want to do.'
Van Phillips is alone in second place at 7-under-par 209, one shot ahead of Andrew Marshall.
Dredge, the highest ranked player in the world at this event, grabbed a share of the lead with a birdie at the par-4 first. He took the outright lead with a birdie at the par-5 third.
Dredge, who is searching for his first win on the European Tour, created some space between himself and the field when he ran off four consecutive birdies from the fifth to secure a front-nine 6-under 30.
Around the turn, Dredge continued to extend his lead after saving par at the 10th. He eagled the par-5 11th from 20 feet out, then ran off three straight birdies starting at the 12th.
The 72nd-ranked player in the world capped his magical round with a birdie at the par-5 16th.
'I didn't think about a 59 until walking off the green at 16 when I made birdie,' said Dredge. 'I thought one more and I have a 59. Standing on the 17th tee I was going through the shot and couldn't help but think about it. I gave myself a good chance on the 17th and just hit a bad drive on the 18th.'
His birdie attempt on 17 lipped out and his attempt for a 59 rolled past the left edge on 18.
'I really wanted to shoot a 59,' said Dredge. 'It is not very often you get a chance to shoot 59. I was very much aware of it and was really trying to hole that putt. I kept hitting iron shots close. I didn't drive the ball as well as I normally do but my iron play and putting made up for that.'
Phillips posted a bogey-free 67 during his third round. He got rolling with birdies at the fourth and sank another birdie at the sixth.
On the back nine, Phillips notched back-to-back birdies from the 10th. He closed his round with a birdie at the par-4 18th.
'I'm not surprised how well I have played in my first week back as I have worked really hard on my game,' said Phillips. 'I feel good about my game and the objective is definitely to get back on the main Tour. You never know what might happen around here.'
Fredrik Andersson is by himself in fourth place at 5-under-par 211. Paul Broadhurst, Brian Davis, Sam Little and Henrik Stenson are one shot further back at minus-4.
First and second-round leader Jesus Maria Arruti faltered with his second straight 74 to drop into a tie for 12th at 2-under-par 214.
The preferred lies rules were in play due to heavy rains that delayed action on Thursday.