In 2013 we took a trip to the South East of the country. One of the most interesting places there is Jökulsárlón, Glacier Lagoon. When we got there we spotted a small group of people near the shore. They had gathered around a Walrus (Odobenus rosmarus). We were so surprised, we had never seen a Walrus before.
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This huge animal just lay there enjoying the rest, flipping over every once in a while. Some tourist asked us if it was common to see a Walrus in Iceland and we could tell them that this was a first for us.
Walruses are very seldom seen in Iceland but this animal, a male, is probably accountable for several sightings in 2013.
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Reykjavík Grapevine in English:
http://grapevine.is/news/2013/09/30/a-wealth-of-walruses/
Morgunblaðið in Icelandic, with a photo from ORNOSK/Örn Óskarsson:
http://www.mbl.is/frettir/innlent/2013/09/18/rostungur_flakkar_milli_faereyja_og_islands/