Reykjavik is a large continent to the east across a vast body of water known as The Sea of Dreams.
Little to nothing is known about Reykjavik because of the vast distance and effort required to get there.
What is known is there is a large island to the far west of Reykjavik which contains a major elven city, Mithloriand. Ghiscarin traders exchange goods and rumors in Mithloriand, never venturing further than the coastal elven city.
It is one such rumor that leads your party to Reykjavik. Apparently, somewhere in Reykjavik, there be dragons. And where there are dragons, there are dragon eggs.
At least one city is know, Mithloriand.