Can we use this format using this module?

It should be. I haven't changed any of the mechanism for HOW drupal handles language negotiation and configuration on that front. As long as you've got your languages configured the way you want, it will prefix your paths with that. So, whether ENGLISH Canada = en-CA or EN-ca or eng-can, whatever permutation you want, its up to you to configure the individual languages. After that, the negotiation module will ask to assign associations between prefixes and site paths. It should work.

Cool. will try this out. Closing this for now.