This is theoretically possible, however I have found working with localization based on country and language, rather than just country to be problematic. Xib files, for example, seem to disregard the region and just grab the localization for the language.
The way to do it (in theory) is to use, for your localization name, the ISO language code in lower case letters, followed by the ISO country code in upper case.
So, in your case, a localization for Spain, would be:
es_ES.lproj
And the one for Mexico would be
es_MX.lproj
In theory, any resource that could be shared could be put in:
es.lproj
or
Spanish.lproj
Though the former is preferred.
That's all there is to it, really. But, like I said, I've found this functionality to be kinda buggy and inconsistent, though I haven't tested it since SDK 2.0 release.
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