Maybe try and find an exercise you do like, I'm sure there's something you can do that's enjoyable. If you're not doing something you can at least learn to like, you're not going to stick with it, eh?
And are you sticking strictly to the 1200 calories? Weight can naturally fluctuate, so it's possible that you're not really losing/gaining two pounds of fat, it could just be water weight. But if you're really sticking to 1200 calories and exercising, you should be losing weight. Maybe try and add in some more exercise and more carefully monitor your calories.