Mr Molenaar is holed up in a house on Napier Hill after shooting and killing Senior Constable Len Snee, who was executing a cannabis search warrant, about 9.30am yesterday.
Mr Snee's body is still lying next to his police car outside the Chaucer Rd house where he fell.
Repeated attempts by police to recover his body have been met with gunfire from Mr Molenaar. Senior Constable Bruce Miller, 40, a community constable in the suburb of Ahuriri, dog handler Senior Constable Grant Diver, 50, and a neighbour were also wounded by gunshots yesterday.
All are in a critical condition in Hawke's Bay Hospital's intensive care unit.
As the siege continues with no sign of Mr Molenaar giving himself up, police say they are prepared to be patient. New Zealand's most experienced tactical commanders have been brought in to try to end safely the stand-off.
An army robotic bomb disposal vehicle and two light armoured vehicles have been stationed near the property.
Police said they had had only "spasmodic" communication with Mr Molenaar overnight. "We are relying on the tried and true, in terms of cordon, contain and appeal," said police eastern area commander Sam Hoyle.
A friend of Mr Molenaar told NZPA that the former territorial army officer strived to be like the gun-toting movie character Rambo. He is known to be heavily armed inside the house. Police believed he had a number of guns of different calibres, large stocks of ammunition, and possibly explosives. The friend suggested it was possible he could even have booby-trapped the house.
Another friend who has known Mr Molenaar since childhood described him as "volatile". "He is an extremely dangerous man when provoked, or taken by surprise, or antagonised, or made angry," said Ron, who did not want his surname revealed.
