Lace has been on the run since Friday when he fled into bushland after police pulled him over on the Bruce Highway at Maryborough.

He had earlier removed an ankle tracker he was required to wear after completing a jail term for murdering Margaret James at her Caboolture home in 1999. The 55-year-old was shot in the head after Lace suggested a game of Russian roulette.

Police dog Rambo was killed on Friday night when the animal ran in front of a car while hunting for him.

On Monday police intercepted an ute owned by Lace at Dundathu near Maryborough but it took off.

Police were forced to abandon the pursuit when it became too dangerous and the abandoned ute was found a short time later.

A man and a woman were arrested soon afterwards. A second man was arrested later. They are facing a range of charges including dangerous operation of a vehicle.

One of the men was allegedly found with a loaded, homemade gun.

Detective Inspector Gary Pettiford says police won't stop until they find Lace, who is considered dangerous and should not be approached.

"We won't let up until we find him. We are leaving no stone unturned," he told reporters on Tuesday.

"We thought we had him today but obviously just missed."

Anyone who spots Lace should contact Crime Stoppers.

Australian Associated Press