In a round that included four birdies and four bogeys, Smail carded a level-par 70, finishing six shots behind Canadian leader Mike Weir and tied for 14th place.
Michael Campbell, who won the tournament in 2005, shot six bogeys, one birdie and a double-bogey for a disappointing 7-over finish in 124th place.
The third New Zealander in the field, Douglas Batty, tied for 81st after a 4-over round that included a birdie, a bogey and two double-bogeys.
Sweden's Peter Hanson fired a 4-under 66 to sit in second, while World No 1 Tiger Woods finished with a 4-over 74.