There does seem to be classes for it in the Scripting mod support. So I'm guessing it's possible....

I.e.
ProjectSchoolMod -> M_ILocalization,
ProjectSchoolMod -> M_ILocalizationContext,
ProjectSchoolNs -> ModNs -> LocalizationContext (Note: This one contains a RegisterLocalization() method.)

I'd do a search for Localization using Visual Studio's Object Explorer after opening the TestModFunction project. (That should also show you how to obtain contexts from the game.)