Last week's winner of the Joburg Open, Grace continued his fine form at the Fancourt Links with a seven under round of 66 to finish the day at 12 under for the tournament.
"I'm just really enjoying it out there," the 23 year-old said after his round.
"It's probably my favourite course in the world and coming back here is a fabulous feeling, especially playing well."
It was Slattery who scored the best round of the day however, with a stunning 65 which included ten birdies.
"It was one of those rounds I'm going to remember for the rest of my life and hopefully it can kickstart something for me," the 33 year-old Englishman said.
Faring less well was overnight leader Nicolas Colsaerts, whose first round course record was followed up by a disappointing 76 which left him in joint fifth place. It was a worse day still for England's Tom Lewis, who only managed a 74 after bogeying three of his first five holes.
But, for Grace, this could be his opportunity to score back to back victories on the European Tour, and his most recent victory has given him "a real calm" on the course.
"It's great to keep the nerves down and just go out there and play golf," he explained.
"I've changed my routines a bit, I'm taking my time, sticking to what club I'm going to hit and keeping things as simple as possible."





