Plateau/exercise help

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Hi everyone,
I am a bit of a yo-yo dieter and have lost weight with this diet before- when I have done this in the past I have lost a lot weight per week but this time round I have been losing a pound a week. It's not necessarily a problem but for me the weight normally comes off very quickly (and usually goes on quick too when I give up!) I have been eating 1340 calories a day and doing 1 hour of cardio 4 times a week but am not seeing any changes which is very frustrating for me as I never exercised when previously losing weight. This week I am going to drop down to 1200 calories a day to see if it makes any difference. When exercising do you eat the extra calories that you burn off? Not sure if the problem is that I'm eating 800-900cals a day net?
Any help would be greatly appreciated!
Siobhan X